Valmieras stikla škiedra
Half Year financial report
Unaudited consolidated financial report of VALMIERAS STIKLA ŠĶIEDRA, AS for 6 months period ended 30 June 2018
VALMIERAS STIKLA ŠĶIEDRA, AS consolidated net sales reaches EUR 60.93 Million
The consolidated net sales of VALMIERAS STIKLA ŠĶIEDRA, AS and its subsidiaries (hereinafter – VALMIERA GLASS GROUP or the GROUP) in the first half of 2018 has reached EUR 60.93 Million. Compared to the sales of the GROUP in the same period of year 2017 it has decreased by EUR 8.18 Million, as a result of the lack of availability of internal materials supply and the delay in ramp up in the USA. In general, the demand situation was such that the planned turnover could be achieved if the production goals were also achieved.
The consolidated operating profit (EBITDA) was EUR 5.43 Million and that is EUR 6.27 Million or 53.4% less than in the year 2017. The EBITDA margin decreased as well to 8.95% from 16.9% last year. The earnings before interest and taxes (EBIT) is EUR -1.854 Million and that is EUR 7.96 Million lower than in the year 2017. The consolidated operating profit margin ratio in first six month 2018 was -3%, and this is solely due to the problems of the US Company. This also had an impact on all other key figures, which are now in negative.
Considering the operation and performance of subsidiary P-D VALMIERA GLASS USA Corp. within 6 months of 2018, the management board had to update the budgets and forecast a decreased net result of VALMIERA GLASS GROUP to EUR 5 Million loss by the end of the year.
The companies in Latvia and the UK have reached their profit budgets and the Management continue to believe that this will be the case at the end of the year. Nevertheless, these good results can’t offset the significant start-up loss of American company. These start-up losses result from exceeding the investment budget and from a delay in commissioning the production facilities. The Management has taken action early and expects continuous improvement by the end of the year. The turnaround of the operating result of the American company is predicted for December 2018. The result situation of the American company has also an influence on the financing situation. The Executive Board is currently negotiating with the banking partners and major shareholders to provide additional liquidity.
About VALMIERA GLASS GROUP:
VALMIERAS STIKLA ŠĶIEDRA, AS and its subsidiaries (hereinafter – VALMIERA GLASS GROUP or the GROUP) is one of the leading glass fibre manufacturers in Europe, with more than 50 years of experience in fiberglass production. VALMIERA GLASS GROUP's core business areas are glass fibre research, glass fibre product development, production and trade. VALMIERA GLASS GROUP is the only group in the world with a vertically integrated structure and a wide range of glass fibre products for the thermal insulation market with a temperature resistance up to 1250°C.