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Unrealized exchange rate losses push Pannunion in red in Q2

Hungarian packaging-materials company Pannunion posted net losses of HUF 199m in the second quarter of 2010, compared to net income of HUF 585 million in Q21 2009, the company said in its consolidated IFRS report.

Operating profits (EBIT) jumped almost 40% but the group recorded net losses on financial operations instead of profits a year earlier.

The company still recorded net income of HUF 24 million in H1 this year as against net losses of HUF 36 million a year earlier.

Pannunion sales revenue rose 24.1% in one year to HUF 3.7 billion in Q2, and rose 19.7% to HUF 7.2 billion in H1 2010.

H1 sales rose in every unit except for the Hungarian unit Almand, with the three foreign units registering growth near or in excess of 50%. The parent company as all five units registered pre-tax profits in the first half except for a HUF 14 million loss at the Romanian subsidiary Unical and a HUF 11 million loss at Interagroparck in the Ukraine.

EBITDA rose 12% to HUF 505m in Q2 and rose 3.8% to HUF 980m in H1.

In Q2, Pannunion posted HUF 441m losses from financial operations compared to profits of HUF 413m a year earlier as the revaluation of foreign currency loans resulted in HUF 235 million unrealized exchange rate losses after HUF 71 million exchange rate gains in Q1. H1 financial losses came to HUF 413 million, only slightly up from a year earlier.

The company had consolidated total assets of HUF 12.4 billion on June 30, 2010, up 7.5% yr/yr, and up 10.3% from December 30, 2009. Net assets rose 2.6% yr/yr and 13.7% in six months to HUF 3.4 billion.

Parent company Pannunion, the largest member of the Pannunion Group, had unconsolidated Hungarian-accounting standard revenue of 5.1 billion in the first half of 2010, up 21.8% yr/yr. The company generated operating profit of HUF 327 million in H11, up 52.2% yr/yr, and EBITDA of HUF 672 million during the period, up 16.7% yr/yr.

Pannunion's shares trade in the B-category at the Budapest Stock Exchange. (MTI – Econews)