M.J.MAILLIS GROUP announces its Consolidated Financial Results for the 1st Quarter 2007:
- Consolidated Turnover of Euro 93 mln versus Euro 94.3 mln in the 1st quarter of 2006.
- Consolidated Earnings before Interest, Taxes, Depreciation and Restructuring Charges (E.B.I.T.D.A.) of Euro 10.9 mln versus Euro 13.7 mln in the relevant period of 2006.
- Consolidated Net Income (N.I.) of Euro 1.9 mln versus Euro 4.1 mln in the 1st Quarter of 2006.
In the 1st Quarter of 2007, the Group posted significant recovery vs the performance of the second half of 2006, with EBITDA increasing by 30% vs the average EBITDA of the last two quarters of 2006.
In comparison with the 1st quarter of 2006, Consolidated Turnover was marginally down by 1.4%, affected by the negative translation impact of the USD and softer sales of the machines segment. Steel strap turnover was up by 4.3%, plastic strap sales were flat in terms of value but 10% higher in volume, and film sales were up 6%.
Profitability wise, although gross margin has recovered from the low levels of the second half of 2006, it still lagged behind the Q1 2006 level, leading to a lower EBITDA.
As international competitive conditions are intensifying, the Group needs to continue to adjust its organisation in order to improve profitability and reduce costs.
As presented in the Annual General Shareholders' Meeting, the Group's priorities for the next two years are to:
- increase market share by promoting the complete end-of-line solution through the European distribution network, exploiting the Group competitive advantage,
- continue to invest in the fast growing segments of plastic packaging materials (PET strap, film),
- expand geographically: strengthen presence in North America and increase penetration in India and other Asian markets,
- finalise restructuring and rationalisation projects in the European subsidiaries aiming at effectiveness increase and cost reduction,
- generate positive cash flow and contain working capital.