Hungarian packaging company Pannunion Group posted consolidated pre-tax profit of HUF 337 million in the first quarter of 2011, up 40.4% yr/yr, as the company’s revenue growth exceeded the rise in materials during the period, the company announced in its unaudited consolidated first-quarter IFRS report on Wednesday evening.
The group’s revenue rose 12.3% in one year to HUF 3.92 billion in the first quarter. Operating profit fell, however, 9% to HUF 193 million as a result of the increasing cost of production materials during the period. The company noted that the average price of polystyrene granulates was 41% higher, the price of polypropylene granulates rose 33% and the average price of polyvinyl-chloride powder was 22% higher than in Q1 2010.
Consolidated EBIDTA was HUF 461 million in the first quarter of 2011, down 2.9% yr/yr, and the EBITDA ratio fell to 11.8% from 13.6%.
Investment spending fell 50% from a year earlier.
The Pannunion Group consists of six companies: Pannunion Packaging, Almand Plastic Industry and Pannon-Effekt Plastic Industry Llc, all based in Hungary, and a Romanian unit Unical Prodimpex, a Serbian unit Unionplast; and a Ukrainian unit Interagropak.
Within the group, Pannunion Packaging generated the highest revenue according to unaudited Hungarian Accounting Standards (HAS) during the first quarter at HUF 2.85 billion up 17.7% yr/yr. Pannunion Packaging had HAS pre-tax profit of HUF 248 million in Q1, up 75.7%.
The Pannunion Group employed 626 workers at the end of the first quarter of 2011, up from 599 at the end of Q1 2010.
The Pannunion Group is a B-category issuer at the Budapest Stock Exchange (BSE). The company’s shares were trading at HUF 253 at 10:30 a.m. on Thursday, up 2.02% from their Wednesday closing value.
Hungarian energy company PannErgy, which is a A-category issuer at the BSE, owns 95.22% of Pannunion shares.
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