Consolidated net sales of VALMIERAS STIKLA ŠĶIEDRA, AS reached 125.9 million euros in 2017

23. April, 2018

The consolidated net sales of VALMIERAS STIKLA ŠĶIEDRA, AS and its subsidiaries (hereinafter - VALMIERA GLASS GROUP or the GROUP) in the year 2017 has reached EUR 125.9 Million. The consolidated operating profit (EBITDA) was EUR 19.6 Million and that is EUR 1.78 Million or 9% more than in the year 2016. The EBITDA margin increased as well to 15.5% from 14% last year. The earnings before interest and taxes (EBIT) reached EUR 8.48 Million and that is EUR 1.2 Million higher than in the year 2016.

Consolidated Pre-tax profit reached EUR 8.6 Million in 2017 marking a strong growth of EUR 3.8 million from EUR 4.7 million in 2016.

The consolidated net profit of the GROUP in the year 2017 was EUR 8.2 million, or EUR 3.4 million higher compared to the audited net profit of the GROUP in the year 2016. This result was achieved through the excellent sales conditions and the associated higher average prices. The higher output of furnaces and the consistent management of costs also made a significant contribution.

Due to continued strong demand in the fiberglass market and availability of the new capacity in the US, the Company expects a strong increase in sales to EUR 162.4 million in 2018. The plant was started in January 2018 and produced after the first initial difficulties since middle of March sellable goods. The installed capacities of 50,000 tons are to be fully utilized by the end of the year.

Taking into account the start-up costs in the first half of 2018, EBITDA will increase to EUR 23.6 million. Due to the borrowing to finance the investment of EUR 55 million and the associated financing costs, the net profit in 2018 will temporarily narrow to EUR 4.7 million. Only with full use of capacity in the following years will the high investment be reflected in an acceptable net result.

In order to familiarise investors, partners, clients and the company with VALMIERAS STIKLA ŠĶIEDRA, AS, its operation and management, Reports on Corporate Governance and Corporate Social Responsibility for the Year 2017 were submitted to NASDAQ Riga along with the Audited Report of VALMIERAS STIKLA ŠĶIEDRA, AS for the Year 2017.