Consolidated results 1ste half 2004
The operating income increases by 2.1%. The operating profit (EBIT) is under pressure as a result of the sharp increases in the costs and the overcapacity on the paper production market.
At the end of the first six-month period 2004 VPK Packaging Group notes an increase of the volume in paper and packaging with respectively 2.3% and 6%.
The sales prices in the paper division are under pressure due to the overcapacity on the paper market and the sharp increase in the energy prices and costs.
The sales prices in the paper division are under pressure due to the overcapacity on the paper market and the sharp increase in the energy prices and costs.
Extension of the consolidation perimeter: figures as at 30/06/04, include the results of the activities of Deva Cores UK
(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
(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
(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
(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 remains stable (195.1 mio euro), in comparison with the same period of last year. The volumes in the packaging sector increased with 6%. This increase was mainly realized by the corrugating board division in the UK, the solid board division in Belgium and the positive integration of the recent acquisitions.
- the operating profit (EBIT) decreased with 20.9%.
- the current net profit amounted to 11.7 mio euro compared with 12.8 mio euro in comparison with the same period in 2003, which means a decrease of 9.2%.
- the net financial debt has further decreased from 14.3 mio euro on 31/12/03, to 9.2 mio euro on 30/06/04.
Investments
For 2004 we planned investments for a total amount of 45 mio euro of which 29 mio euro has been initialized so far.
The outlook for the second half year 2004
Except for international uncertainty we expect no exceptional negative developments. Nevertheless the next 6 months will not be sufficient to equal the operating results of last year. Consequently we will take into account a decrease of the operating profit between 10 % and 20 %.
Competition is tough because of the overcapacity in the countries which we approach. Therefor our prior objective remains the reduction of internal costs and the increase of our productivity.
We wish to keep on growing and we keep on searching for opportunities as well in Western as in Eastern Europe, supported by our professional management and our strong financial structure. Besides this our very healthy financial structure gives us a great advantage in the current competitive market.
Auditors statement
We have carried out a limited control of the intermediate consolidated situation of VPK Packaging Group as per 30 June 2004, 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.
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 six tube-winding companies and five trading companies. VPK Packaging Group employs 2,600 people in five countries. In 2003 the Group realised a consolidated turnover of 386 mio euro.
Financial calendar
16 September 2004: Press announcement and publication of the half-yearly results for the 2004 financial year
17 September 2004: Analyst meeting
22 March 2005: Press announcement and publication of the year results 2004
27 May 2005: General meeting of shareholders (exercise 2004)
- the turnover of VPK Packaging Group remains stable (195.1 mio euro), in comparison with the same period of last year. The volumes in the packaging sector increased with 6%. This increase was mainly realized by the corrugating board division in the UK, the solid board division in Belgium and the positive integration of the recent acquisitions.
- the operating profit (EBIT) decreased with 20.9%.
- the current net profit amounted to 11.7 mio euro compared with 12.8 mio euro in comparison with the same period in 2003, which means a decrease of 9.2%.
- the net financial debt has further decreased from 14.3 mio euro on 31/12/03, to 9.2 mio euro on 30/06/04.
Investments
For 2004 we planned investments for a total amount of 45 mio euro of which 29 mio euro has been initialized so far.
The outlook for the second half year 2004
Except for international uncertainty we expect no exceptional negative developments. Nevertheless the next 6 months will not be sufficient to equal the operating results of last year. Consequently we will take into account a decrease of the operating profit between 10 % and 20 %.
Competition is tough because of the overcapacity in the countries which we approach. Therefor our prior objective remains the reduction of internal costs and the increase of our productivity.
We wish to keep on growing and we keep on searching for opportunities as well in Western as in Eastern Europe, supported by our professional management and our strong financial structure. Besides this our very healthy financial structure gives us a great advantage in the current competitive market.
Auditors statement
We have carried out a limited control of the intermediate consolidated situation of VPK Packaging Group as per 30 June 2004, 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.
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 six tube-winding companies and five trading companies. VPK Packaging Group employs 2,600 people in five countries. In 2003 the Group realised a consolidated turnover of 386 mio euro.
Financial calendar
16 September 2004: Press announcement and publication of the half-yearly results for the 2004 financial year
17 September 2004: Analyst meeting
22 March 2005: Press announcement and publication of the year results 2004
27 May 2005: General meeting of shareholders (exercise 2004)
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: 20-09-2004
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