GERMANY – On May 15 surfaces manufacturer Surteco SE reported a substantial increase in earnings in the first quarter of 2018. Consolidated net profit went up by 28 % to €8.0 million compared to Q1 2017 when it reached €6.2 million.
The principal driver exerting a positive effect in the Strategic Business Unit Plastics was the acquisition of the Portuguese Probos Group in the middle of 2017. While the divestment in November 2017 of the subsidiary Canplast Sud S.A., composed of a PVC edge manufacturing plant located in Santiago de Chile and that was acquired by its partner De Vicente Plásticos S.A. (DVP), did not generate much impact on the Surteco Group figures.
Sales revenues of the Surteco Group rose by 10% to €186.7 million during the reporting period after €169.7 million in the previous year. The EBITDA was up 19.9% from €19.6 million in 1Q-2017 to €23.5 million in 1Q-2018.
“Our international expansion strategy is paying off. The acquisitions we have made increase our presence in growth markets and they are developing into very gratifying profitability drivers within the Group,” commented Dr. Herbert Müller, Chairman of the Board of Management of Surteco SE.
While revenues in the Plastics sector went up by 24.9% to €90.9 million (1Q-2017: €72.8 million), a brake was put on development in the Business Unit Paper by higher raw materials prices and an unfavorable product mix. Negative currency effects mean that sales in the Paper segment have gone down by 1 % to €95.8 million (1Q-2017: €97.0 million).
Surteco SE confirms an unchanged outlook for the business year 2018 and continues to work towards significant growth in sales and earnings. Group sales amounting to €689.7 million last year are projected to rise to between €725 and 750 million. The growth is supposed to be achieved by modest organic growth and full-year consolidation of the Probos Group. Earnings before financial result and income tax (EBIT) are projected to be improved from €44.7 million in the previous year to a value between €49 and 53 million in 2018.
