The turnover increases, especially thanks to recent acquisitions, by 8.8%
The operational cash flow (EBITDA) remains stable
The current net profit increases by 19.1%
Consolidated results: 1st half 2003
At the end of the first six-month period 2003 VPK Packaging Group notes an increase of the turnover with 8.8% and an increase of the current net profit with 19.1%.
The gross margin decreased slightly due to the weak economic climate and the overcapacity on the paper market.
The gross margin decreased slightly due to the weak economic climate and the overcapacity on the paper market.
Extension of the consolidation perimeter: figures as at 30/06/03, include the results of
Twinpack/Maasbach/Ondulys Industrie (50%)
(1) Operating profit + depreciation + amortisation + provisions.
(2) Operating profit, i.e. : the result before financial results, taxes and extraordinary results.
(3) Operating profit minus financial results but before extraordinary results and taxation.
(4) Total net profit - extraordinary result (after adjustment for taxes) + amortisation on consolidation goodwill.
(5) Current net profit + depreciation + amortisation + provisions + balance of transfers from and transfers to deferred taxes.
Twinpack/Maasbach/Ondulys Industrie (50%)
(1) Operating profit + depreciation + amortisation + provisions.
(2) Operating profit, i.e. : the result before financial results, taxes and extraordinary results.
(3) Operating profit minus financial results but before extraordinary results and taxation.
(4) Total net profit - extraordinary result (after adjustment for taxes) + amortisation on consolidation goodwill.
(5) Current net profit + depreciation + amortisation + provisions + balance of transfers from and transfers to deferred taxes.
Analysis of the results
- the turnover of VPK Packaging Group increased, in comparison with the same period of last year, with 8.8% to 193.6 mio euro. This turnover increase is mainly explained (7%) by the extension of the consolidation perimeter with Twinpack, Maasbach and Ondulys Industrie.
- the operational cash flow (EBITDA) remains stable, in spite of the increase of the turnover, because of the low economic climate.
- the operating profit (EBIT) increased with 4.8% thanks to lower provisions. In first half of 2002 for 2.655 mio euro provisions were provided, in first half of 2003 provisions amounted to 1.568 mio euro.
- the current net profit amounted to 12.7 mio euro compared with 10.7 mio euro in comparison with the same period in 2002, which means an increase of 19.1%. This increase is on the one hand due to above mentioned lower provisions and on the other side especially to the lower taxation burden.
- the net financial debt has further decreased from 33 mio euro on 31/12/02, to 29 mio euro on 30/06/03.
Investments
In January 2003 we became owner of Maasbach Verpakkingen B.V. established in the Netherlands (Krimpen aan den IJssel).
Maasbach is a market leader in the trade of packaging for the meat industry and is complementary to our 2 other trade companies, concretely Handelsmaatschappij Ons Belang and Twinpack.
Given the expected overcapacity on the paper market, we have decided to reduce temporarily the investments announced in December 2002 concerning the rebuild of our paper machine 7, together with some other improvement works.
The total amount of this investment is estimated at 9 mio euro and will bring a capacity increase of 30,000 tons per year. We will apply the released resources to increase the capacity of our packaging departments (corrugated board, solid board, tubes and edge protectors) and to invest in the production of high-quality packaging materials.
In the UK we have started with the expansion of our corrugated board factory Rigid Containers. This extension must permit us to answer to the requirements which are imposed by the food industry in the field of food safety and hygiene to suppliers of packaging.
We took a participation of 30% in Fionia Emballage 2003 A/S in Denmark. Fionia is market leader in Denmark, converts approximately 4. 500 tons paper into tubes and edge protectors in the neighbourhood of Nyborg. From Fionia we can optimal supply Denmark, North Germany and South Sweden.
We have obtained, by means of a capital increase, 12.5% of the German company IBEK Verpackungshandels GmbH.
This company produces bio-degradable consumer packaging for meat, poultry, fish and vegetables.
This product is complementary, completes our range of products which are offered by our trade companies to our customers and reinforces our leading role as environmentally aware packaging producer.
Our trade company Twinpack will distribute this product in Europe.
The outlook for the second six-month period 2003
Due to the bad economic climate, we were faced in the first half of 2003 with a decreasing demand of some of our products. This has conducted, in august 2003, to a shut down, during 10 days, of our paper production in Oudegem. For the last months of the exercise 2003 we don’t expect a real improvement of the economic climate. The internal factors are under control but the uncertain economic circumstances oblige us to cautiousness.
Nevertheless we have faith in the future.
Auditors statement
We have carried out a limited control of the intermediate consolidated situation of VPK Packaging Group as per 30 June 2003, in accordance with the recommendation of the Business Auditors Institute in this regard. Our control mainly consisted in the analysis, the comparison and the discussion of the financial information given to us. It was of course less detailed than a complete control, the purpose of which is to issue a statement on the view of the capital, the financial position and the consolidated results at the end of the fiscal year. During our audit, no data were discovered which could involve important adaptations of the intermediate situation.
Grant Thornton, Lippens and Rabaey, chartered auditor, represented by Stefaan Rabaey,.
Financial services
In accordance with article 5 first paragraph 4° of the Royal Decree of 31 March 2003 we make you acquainted that the financial services concerning the VPK Packaging Group share are provided by the Fortis Bank and Petercam.
Company profile
VPK Packaging Group, listed on Euronext Brussels, has in the Benelux, France and the UK, two paper plants, nine corrugated board plants for the production of transport packaging, one solid board plant and four tubewinding companies.
The current packaging divisions in the group have a combined paper consumption of 400,000 tonnes a year and record a group turnover of 400 million euro. This ranks the group among the best performing companies operating in its sector in Europe.
VPK Packaging Group employs over 2,400 people in five countries.
Financial calendar
23 March 2004: Press announcement and publication of the year results 2003
28 May 2004: General meeting of shareholders (exercise 2003)
14 June 2004: dividend become payable
16 September 2004: Press announcement and publication of the half-yearly results for the 2004 financial year
- the turnover of VPK Packaging Group increased, in comparison with the same period of last year, with 8.8% to 193.6 mio euro. This turnover increase is mainly explained (7%) by the extension of the consolidation perimeter with Twinpack, Maasbach and Ondulys Industrie.
- the operational cash flow (EBITDA) remains stable, in spite of the increase of the turnover, because of the low economic climate.
- the operating profit (EBIT) increased with 4.8% thanks to lower provisions. In first half of 2002 for 2.655 mio euro provisions were provided, in first half of 2003 provisions amounted to 1.568 mio euro.
- the current net profit amounted to 12.7 mio euro compared with 10.7 mio euro in comparison with the same period in 2002, which means an increase of 19.1%. This increase is on the one hand due to above mentioned lower provisions and on the other side especially to the lower taxation burden.
- the net financial debt has further decreased from 33 mio euro on 31/12/02, to 29 mio euro on 30/06/03.
Investments
In January 2003 we became owner of Maasbach Verpakkingen B.V. established in the Netherlands (Krimpen aan den IJssel).
Maasbach is a market leader in the trade of packaging for the meat industry and is complementary to our 2 other trade companies, concretely Handelsmaatschappij Ons Belang and Twinpack.
Given the expected overcapacity on the paper market, we have decided to reduce temporarily the investments announced in December 2002 concerning the rebuild of our paper machine 7, together with some other improvement works.
The total amount of this investment is estimated at 9 mio euro and will bring a capacity increase of 30,000 tons per year. We will apply the released resources to increase the capacity of our packaging departments (corrugated board, solid board, tubes and edge protectors) and to invest in the production of high-quality packaging materials.
In the UK we have started with the expansion of our corrugated board factory Rigid Containers. This extension must permit us to answer to the requirements which are imposed by the food industry in the field of food safety and hygiene to suppliers of packaging.
We took a participation of 30% in Fionia Emballage 2003 A/S in Denmark. Fionia is market leader in Denmark, converts approximately 4. 500 tons paper into tubes and edge protectors in the neighbourhood of Nyborg. From Fionia we can optimal supply Denmark, North Germany and South Sweden.
We have obtained, by means of a capital increase, 12.5% of the German company IBEK Verpackungshandels GmbH.
This company produces bio-degradable consumer packaging for meat, poultry, fish and vegetables.
This product is complementary, completes our range of products which are offered by our trade companies to our customers and reinforces our leading role as environmentally aware packaging producer.
Our trade company Twinpack will distribute this product in Europe.
The outlook for the second six-month period 2003
Due to the bad economic climate, we were faced in the first half of 2003 with a decreasing demand of some of our products. This has conducted, in august 2003, to a shut down, during 10 days, of our paper production in Oudegem. For the last months of the exercise 2003 we don’t expect a real improvement of the economic climate. The internal factors are under control but the uncertain economic circumstances oblige us to cautiousness.
Nevertheless we have faith in the future.
Auditors statement
We have carried out a limited control of the intermediate consolidated situation of VPK Packaging Group as per 30 June 2003, in accordance with the recommendation of the Business Auditors Institute in this regard. Our control mainly consisted in the analysis, the comparison and the discussion of the financial information given to us. It was of course less detailed than a complete control, the purpose of which is to issue a statement on the view of the capital, the financial position and the consolidated results at the end of the fiscal year. During our audit, no data were discovered which could involve important adaptations of the intermediate situation.
Grant Thornton, Lippens and Rabaey, chartered auditor, represented by Stefaan Rabaey,.
Financial services
In accordance with article 5 first paragraph 4° of the Royal Decree of 31 March 2003 we make you acquainted that the financial services concerning the VPK Packaging Group share are provided by the Fortis Bank and Petercam.
Company profile
VPK Packaging Group, listed on Euronext Brussels, has in the Benelux, France and the UK, two paper plants, nine corrugated board plants for the production of transport packaging, one solid board plant and four tubewinding companies.
The current packaging divisions in the group have a combined paper consumption of 400,000 tonnes a year and record a group turnover of 400 million euro. This ranks the group among the best performing companies operating in its sector in Europe.
VPK Packaging Group employs over 2,400 people in five countries.
Financial calendar
23 March 2004: Press announcement and publication of the year results 2003
28 May 2004: General meeting of shareholders (exercise 2003)
14 June 2004: dividend become payable
16 September 2004: Press announcement and publication of the half-yearly results for the 2004 financial year
For additional information:
Pierre MACHARIS, CEO
Luc LEDEGEN, Investor Relations
Tel.: +32 (0)52 26 12 08
E-mail : luc.ledegen@vpk.be
Pierre MACHARIS, CEO
Luc LEDEGEN, Investor Relations
Tel.: +32 (0)52 26 12 08
E-mail : luc.ledegen@vpk.be
Last update: 19-09-2003
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