Frigoglass' consolidated net sales increased by 4.9% for the first half of 2012 to €338.2m.
First-half net sales were positively impacted by the six-month contribution of Frigoglass Jebel Ali, compared to one-month contribution in the prior year period.
Excluding the impact of Frigoglass Jebel Ali, net sales increased 2.2% in the first half of 2012. Cool operations' sales reached €288.6m in the first half, 4.6% ahead of the prior year period, primarily driven by strong performances in the emerging regions of Africa/Middle East and Asia/Oceania.
Glass operations' sales increased by 6.8% in the first half, to €49.6m, reflecting the positive effect from the consolidation of Frigoglass Jebel Ali.
Within the cool operations, Eastern Europe's sales of €118.1m were marginally ahead of the prior year period, with top-line trends softening in the second quarter. The negative momentum in Western Europe continued, with sales declining by 22.1% for the first half to €50.3m. Sales in Africa/Middle East grew by 38.8% to €45.6m, with growth accelerating in the second quarter of 2012.
The performance of Asia/Oceania remained solid, with sales increasing by 20.2% in the first half to €65.3m, underpinned by continuing recovery in India. Sales in North America grew by 47% in the first half to €9.3m, and the company remains well-positioned to maintain strong growth rates in this market.
Sales at glass operations increased by 6.8% in the first half to €49.6m. Frigoglass Jebel Ali contributed €10.5m for the first half, compared to €1.9m the prior year period. On an organic basis, glass operations' sales declined by 12.3% to €39.1m, primarily reflecting the negative impact of the one-month closure of a furnace in Nigeria for cold repair, and project deferrals by key customers to the second half of the year.
Consolidated operating profit (EBIT) declined by 3.5% for the first half to €35.1m. First-half EBIT margin declined by 90 basis points to 10.4% compared to the prior year. The benefits arising from increased volumes and the company's ongoing initiatives to reduce operating costs were offset by a less favourable geographic mix effect and the dilutive effect stemming from the consolidation of Jebel Ali.
Performance was also negatively impacted by the investment associated with its entry into China and North America that had a dilutive effect of around 210 basis points on EBIT margin.
Net profit was €16.4m in the period, compared to €19.3m in the first half of 2011. Cash flow after operating and investment activities improved significantly in the first half of the year, resulting in an inflow of €11.8m, compared to an outflow of €78m in the prior year period.
This performance reflects a focus on receivables collection that more than offset higher year-on-year capital expenditure. As a result, net debt at 30 June 2012 was €241.5m, compared to €268.8m in the prior year.
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- Beverage > Coolers
- Business > Financial
- Packaging > Glass
- Packaging > Plastic