Blog Post

Gascogne’s sales down 2.9 per cent to Euro 212.8 million in 1H 2016

(France, Oct. 11, 2016) Gascogne’s sales in the first six months of the year totalled Euro 212.8 million, down 2.9% on the first half of 2015, mainly due to the Paper Division.
EBITDA rose by 8%, from Euro 10.8 million to Euro 11.7 million. Consequently, the underlying operating profit increased from Euro 6.4 million to Euro 7 million.
The operating profit was Euro 6 million and integrates other non-operating income and expenses for a total of Euro1 million, compared with Euro 0.9 million in the first half of 2015.
Net profit stood at Euro 5.1 million, compared with Euro 7.2 million in the first half of 2015. In the second half of the year, the Group will benefit from the effects of the various measures taken as part of the plan.
The first half of the year was impacted by some favorable macro-economic factors (the price of oil was still relatively low and the exchange rate between the euro and the dollar was stable) and, locally, by the start of a slight drop in wood prices, which remain high.
The Wood Division failed to improve its profitability in the first half of the year, mainly because the timber frame walls activity is still running at a loss and the ramp-up of the cutting-jointing line is still in progress.
The sales activity of the Paper Division was affected by a level of production that fell short of expectations. This shortfall in sales mechanically impacted the half-year’s EBITDA, despite the savings achieved.
The Sacks Division maintained its EBITDA, despite a slight drop in sales.
The Laminates Division reaped the benefits of the actions taken in the last three years (industrial efficiency, control of fixed costs, rationalization of the customer portfolio) and continued to improve its profitability, with constant sales and against a backdrop of relatively stable material costs.
With its four close-fitting activities, the Gascogne Group is the leading multi-specialized operator in the wood industry in France, the world’s leading producer of machine-glazed natural Kraft paper, one of the European leaders in the industrial and consumer sacks market, and one of the world’s leading producers of packaging and protection laminates. (Source: press release)

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