Reno de Medici narrows Q3 loss to €3.1M from €4.6M in year-ago period, reports net revenues down 4.3% to €111.3M, says Q3 saw continuing contraction in demand for consumer and semi-durable goods, falling demand for packaging
November 5, 2012
– • NET REVENUES: EURO 111.3 MILLION (WITH RESPECT TO EURO 116.3 MILLION RECORDED IN THE THIRD QUARTER 2011)
• GROSS OPERATING PROFIT (EBITDA): EURO 5.4 MILLION (WITH RESPECT TO EURO 3.5 MILLION RECORDED IN THE THIRD QUARTER 2011)
• OPERATING PROFIT (EBIT): NEGATIVE FOR EURO 1.2 MILLION (WITH RESPECT TO A NEGATIVE VALUE OF EURO 3.1 MILLION RECORDED IN THE THIRD QUARTER 2011)
• NET PROFIT OF THE PERIOD: NEGATIVE BY EURO 3.1 MILLION (NEGATIVE BY EURO 4.6 MILLION IN THE THIRD QUARTER 2011)
• NET FINANCIAL INDEBTEDNESS: EURO 91.8 MILLION (EURO 105.2 MILLION AS AT 30 SEPTEMBER 2011)
• ROBERT HALL APPOINTED NEW CHAIRMAN OF THE BOARD OF DIRECTORS
• APPOINTMENT OF THE NOMINATION COMMITTEE
The Board of Directors of Reno De Medici S.p.A. (“RDM” or the “Company”), parent company of one of the world’s largest producers of recycled cardboard, met today, examined and approved the Interim financial report for the period ended September 30th, September 2012 of the Reno De Medici Group (“RDM Group” or the “Group”).
The macroeconomic scenario in the third quarter of 2012 is similar to the previous quarters, with continuing contraction in both demand for consumer and semi-durable goods. Consequently, demand for packaging has fallen, as well as, more specifically, the coated cartonboard packaging sector made of recycled fiber.
As regards trends in production factors, recycled fibre prices, maintained at medium to high levels, was characterised in the third quarter by a certain volatility.
The cost of natural gas, the main energy source for RDM Group, remains high, representing the single most negative cost factor affecting the financial results of the quarter and the year. Natural gas price is considerably higher than the current price in other European countries.
Despite this difficult situation, RDM Group has been able to improve the spread (namely the difference between unit sales prices and the unit cost of fibrous raw materials), but this benefit has been essentially absorbed by the increase in the cost of natural gas in Italy compared the same period in 2011.
During the third quarter of 2012 the RDM Group achieved consolidated Net Revenues of Euro 111.3 million, essentially in line with Euro 116.3 million recorded in the third quarter of the year 2011. This result is essentially attributable to higher sales volumes (202 thousand tonnes sold in 2012 compared to 190 thousand tonnes in the same period of the previous year).
The Consolidated Gross Operating Profit (EBITDA) for the third quarter of 2012 of the RDM Group is equal to Euro 5.4 million, compared to Euro 3.5 million recorded in the third quarter of 2011, mainly due to the improvement of the difference between unit sales prices and the unit cost of fibrous raw materials.
Consolidated Operating Profit (EBIT) of the RDM Group in the third quarter of 2012 is negative for Euro 1.2 million, compared to a loss of Euro 3.1 million recorded in the third quarter of 2011.
During the third quarter of 2012, the RDM Group recorded a negative Net Result of Euro 3.1 million, compared to a negative result of Euro 4.6 million recorded in the third quarter of 2011.