Vilnius, Lithuania, 2016-11-04 13:23 CET (GLOBE NEWSWIRE) -- During nine months of 2016, the sales of AB Grigeo Grigiškės amounted to EUR 41.3 million, which is EUR 0.8 million more than during the same period of the previous year.
During the reporting period, the Company earned EUR 2.8 million profit before taxes, which is EUR 0.3 million more than during the same period of the previous year.
During nine months of 2016, the Group consisting of AB Grigeo Grigiškės, UAB Grigeo Baltwood, AB Grigeo Klaipėdos kartonas, PAT Mena Pak and UAB Grigeo Recycling reached the consolidated sales of EUR 74.5 million. That is EUR 3.7 million less than during nine months of 2015.
During the reporting period, the Group earned EUR 3.7 million profit before taxes, which is EUR 3,1 million less than during the same period of the previous year.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) of the Group and Company, comparing with the same period nine months of 2015, decreased by 14 % and increased by 11%, respectively: during the nine months of 2016, EBITDA of the Group was EUR 12 million, of the Company EUR 7.1 million.
During the first nine months of 2016, when compared with the same period of the previous year, the decrease in the Group's profit before taxes was caused by the lower sales of the separate companies belonging to the Group. That was caused by the changes in the prices of wood and paper segments, which were affected by the market factors. The fall in the value of the Russian rouble allowed the Russian manufacturers to increase their exports to Eastern European countries and caused overall drop in the sales prices. The 32 day stop for the planned modernization of AB “Klaipedos Grigeo kartonas” corrugated paper production machine forced some customers to choose other manufacturers during that period and to win them back took more time than it was initially anticipated.
The lower sales and profit growth of AB Grigeo Grigiskes was also caused by insufficient production capacity for finished products. Currently a new production line of finished products is being installed. The installation works will be completed and the line will start running by the end of this year.
All above mentioned factors also influenced the changes in the Group's EBITDA.
More information is provided in the interim consolidated report of AB Grigeo Grigiškės covering the nine months of 2016 with the verification of the responsible persons (see attachments).
Gintautas Pangonis
President of AB Grigeo Grigiškės
(+370-5) 243 58 01
