La Seda de Barcelona (LSB) has reported turnover of 577 million euros for the first half of the year, which represents an increase of 22% compared to the figures for the same period in 2010. The book EBITDA has increased by 14.4%, to 34.7 million euros, while recurring EBITDA is 36.8 million euros, thus increasing by 15.7% (31.8 million euros in the first six months of 2010). All this is the result of the operational improvements implemented and the reduction of corporate structure expenses.
The Company has reduced net consolidated losses before taxes by 88%, down to 4 million euros compared to 33 million euros recorded for the same period last year, and has recorded a profit before taxes in the second quarter of 2011 of 1.4 million euros.
The LSB Group has obtained an operating profit (EBIT) of 5 million euros compared to the loss obtained for the first half of 2010, of 4 million euros.
The Group’s balance sheet at 30 June shows evidence of the trend towards normalization in the financing of working capital, which started during the second quarter of the year, through the increase in commercial financing of suppliers and the availability of commercial credit financing instruments to customers which has materialized in an increase in liquidity of the Group by 18 million euros, compared to the end of the first quarter.
Key business figures
The resin division of LSB has increased turnover by 28.4% (275.6 million euros) during the first six months of the year, compared to the same period last year. The increase in the division’s EBITDA, to 12.8 million euros, shows proof of a notable improvement in the management of margins and fixed costs of this division.
The operations of this division during the first half of the year have been affected by difficulties in the supply of PTA (one of the raw materials of PET) and by the increase in PET prices.
The packaging division of LSB increased turnover by 18.2%, obtaining an EBITDA of 24.8 million euros, despite operating in an environment of strong growth in raw material prices which had a negative effect on the demand for PET packaging.
According to declarations of the Chairman of LSB, Carlos Moreira da Silva “during the second half of the year, the Company will continue to give priority to business development based on the results of R&D in packaging and recycled PET”.
