Nordenia International said its 2011 full year profits of just over €100m – the second highest ever – were driven more by the passing on of price rises to customers rather than volume increases.
The Germany-based film manufacturer and converter hailed the results – which saw the value of sales jump by almost 10% to €880m – but said they fell short of last year’s record-breaking figures because of prevailing economic headwinds.
By contrast, year-on-year volumes grew by just 1.4% to 244,670 tons, said the company.
It added: “The increase in sales, which was disproportionate in comparison with the sales volume, was the result firstly of increased prices for raw materials, which it was only possible to pass on to customers after a time, and secondly of a change in the product mix in the direction of higher-quality products.”
Nordenia chief Ralph Landwehr said the firm’s performance had unsurprisingly been affected by the global economic uncertainties.
"Because of the global economic crisis 2009 was a tough year for the plastics-processing industry,” added the company CEO and chairman: “The packaging industry, which showed strong growth, also benefited from this. Against this positive background, in 2010 we saw above-average growth rates and thus the best result in our company history. We were unable to repeat these excellent 2010 figures in 2011. The adjusted EBITDA of € 101.1 million means for the Nordenia Group the second best result in its history.”
Landwehr forecast that company performance in 2012 would hinge on three major macro-economic factors – the price of oil, developments in the financial situation and - crucially – further developments in raw material prices.
Cost-cutting and global expansion plans
The company revealed that it had implemented tough cost-cutting measures at the end of 2011 – running into the double-digit million range - and an “efficiency programme” for 2012.
"Even though in 2011 we achieved our second-best company result, this measure was necessary in order to keep the company safely profitable,” said Landwehr.
At the same time, Nordenia outlined an ambitious global growth strategy.
It declared its intention to expand its market share in North America, Asia, Germany and Eastern Europe.
The average annual investment volume for 2012 and 2013 was earmarked at about €35.6m. This year’s focus would be at its sites in Gronau (Germany), Jackson (USA) and Poznañ (Poland).