Vilnius, Lithuania
If the first half of 2018, the AB Grigeo group of companies increased its pre-tax profit by 129.4% as compared to the same period of the last year.
During the six-month period that ended on 30 June 2018, the AB Grigeo group of companies reached a consolidated sales turnover that was by nearly 15% higher than that during the six months of 2017 and also improved other operating indicators:
| 6 months of 2018 | 6 months of 2017 | Change | ||
| Income from sales (million EUR) | 71.6 | 62.3 | 14.9 | % |
| Earnings before taxes (million EUR) | 7.8 | 3.4 | 129.4 | % |
| EBITDA (million EUR) | 14.8 | 10.6 | 39.6 | % |
Meanwhile, AB Grigeo during six months of 2018 increased its pre-tax income from sales by 19.5% and had pre-tax earnings of EUR 1.3 million. The company's EBITDA was recorded at EUR 4.9 million and decreased by 9.3% compared to the same period of the last year.
Impact of the prices of raw materials on the operating results
In the first six-month period of 2018, the price of the raw materials used for the production of hygiene paper increased a lot, which had an especially significant impact on the company's achievements. However, the synergy of the whole group of companies and a favourable situation in the market allowed reaching results beyond expectations, and that fact is highly encouraging.
Forecast growth in the earnings of the group of companies exceeds initial expectations
The results of the first six-month period and market trends as well forecasts for the upcoming period allow expecting that the pre-tax earnings of the group will be higher. EBITDA will also grow. The AB Grigeo group of companies updates its forecasts as follows:
| Initial forecast | Updated forecast | Change | ||
| Income from sales (million EUR) | 142.8 | 142.8 | - | |
| Earnings before taxes (million EUR) | 8.6 | 13.8 | 60.5 | % |
| EBITDA (million EUR) | 22.9 | 27.7 | 21.0 | % |
The company does change its forecasts.
AB Grigeo Grigiškės continues to increase its production capacities
Together with BobstMex SA, the company completed work for the installation of a new corrugated cardboard production line and intends to increase the capacity of the corrugated cardboard boxes production unit by around 15%. The new line will allow the company to offer products with high-quality colour printing to its customers. The scope of the investment is around EUR 2 million.
*The AB Grigeo group of companies includes the following companies: AB Grigeo, UAB Grigeo Baltwood, AB Grigeo Klaipėda, PAT Mena Pak, and UAB Grigeo Recycling.
Annexes:
The interim consolidated financial statements of AB Grigeo group of companies for January to June 2018 certified by responsible persons.
Gintautas Pangonis
President of AB Grigeo
(+370-5) 243 58 01
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