Companhia Providência reported profits of R$ 9.5 million in the period and net revenue of R$ 241.9 million. Sales volume over the same period also posted an increase reaching 42 thousand tons.
“Companhia Providência continues to resolutely pursue its growth strategy. During the first half, the Company began work on the installation of a production line in Pouso Alegre, state of Minas Gerais, and on the expansion of our plant in the United States, which this year has already contributed sales of 2,563 tons of nonwovens”, explains Hermínio de Freitas, the company's CEO. These new investments translated into a 34.2% increase in net leverage. A further highlight of the second quarter was the payout of additional dividends of R$ 21.8 million in May, totaling 100% of the adjusted dividend calculation base in 2010.
First half
First half 2011 net income was 45.1% up on the same period in 2010 at R$ 9.5 million. Net operating revenue amounted to R$ 241.9 million, an increase of 9.6% compared with the same period last year. In relation to the first half of 2010, adjusted Ebitda fell 15.5% to R$ 40.2 million. This was a reflection of higher prices of polypropylene, the principal raw material for the production of nonwovens as well as the initial machine operations and adjustments at the US plant.
“Our plant in the United States is in line with plans for ramping up an increase in projected volume for this kind of equipment. This machine has already reached a sales volume of 2,563 tons in 2011, and during the next quarter should reach its full capacity”, commented Eduardo Feldmann, CFO of the company. “Our new installations will allow us to keep pace with growth in market demand which is currently heavy.”
Companhia Providência's investments are running to plan, with the order placed and down payment confirmed for two production lines which will go into operation in 2012. At a total cost of US$123 million, these units will add 40 thousand tons annually to our manufacturing capacity.
The numbers for the quarterly results cover the Providência USA Inc. and Isofilme subsidiaries. The comparative quarters already factor in the adjustments of Law 11.638/07 to Brazilian accounting practices.
About Providência
Founded in 1963, Companhia Providência is the leading producer and distributor of nonwovens in Brazil, with a strong presence in the Americas and a global reach. Backed by a solid economic structure and 48 years of existence, Providência prides itself on the quality of its products and respect for clients, suppliers, employees and shareholders.
Companhia Providência
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