27% YEAR-ON YEAR GROWTH IN NET PROFIT TO 81.3 MILLIONS
§ Consolidated EBITDA growth 19.5% to €154.1 millions. An improvement of 220 basic points compared to 2009.
§ 8.6% increase in consolidated revenues to €633.7 millions.
§ 33.9% reduction in net bank debt on year-end 2009 thanks to robust operating profits.
§ The Board of Directors has agreed to submit a complementary dividend of €0.204 per share and a capital reimbursement of €0.29 per share for approval at the company’s shareholder meeting. As a result, at a combined €0.80 per share, total shareholder remuneration will increase by 28% year-on-year.
Pamplona, 28th February 2010, -The strong earnings growth witnessed since the start of second half 2010 was confirmed in the last quarter of the year. Consolidated revenue for the full-year rose for the sixth consecutive year, climbing 8.6% year-on-year to €633.7 million.
Control over unit raw material costs enabled further gross margin expansion of 1.4 p.p. vs. 2009 to 73.3%, underpinned by margin widening in both the casings division (+0.3 p.p. vs. 2009) and the vegetable food division (+4.8 p.p. vs. 2009), with year-on-year growth of 3.4% in consolidated cost of consumption.
The Viscofan Group managed to tap the growth in the casings market while improving its competitive positioning in the vegetable food sector. The Group’s full-year consolidated EBITDA rose 19.5% on 2009 to €154.1 million, driven by recovery in sales volumes in the casings division, solid revenue in the vegetable foods division, cost control and the Group’s operating leverage, all of which translated into a full-year EBITDA margin of 24.3% (vs. 22.1% in 2009).
EBIT rose 20.9% in 2010 to €110.4 million.
Profit before tax climbed 23.0% higher year-on-year to €105.7 million in 2010, driven by the improved operating performance and the company’s financial health. In all, 2010 net profit was 26.6% higher year-on-year, hitting a new record high of more than €81.3 million. In all, 2010 net profit was 26.6% higher year-on-year, hitting a new record high of more than €81.3 million.
Net bank debt fell by 37.2% over the course of 2010 to €59.8 million thanks to strong cash flows from operations, which enabled the Group to maintain its high pace of capital expenditure (€47.4 million) and shareholder remuneration (€30.6 million). The Group also externalised €14.7 million of pension funds in Germany. . In all, the Viscofan Group’s financial leverage fell to 14.7%, down from 26.2% at the end of 2009.