Annual report - Viscofan

CasingsThe casings market showed a solid performance in2006, driven primarily by healthy demand in EasternEurope, Asia and Latin America; this supportedConsolidated EBITDA in the casings division byDecember 2006 was €78.0 million, 45.9% up on2005 (24.0% like-for-like).increases in both volume and value.The figures showcase the improvements achieved inIn this competitive setting, Viscofan entrenched itsleading position in the artificial casings industry byachieving strong growth in revenues in its corebusinesses. Cellulose casings performed especiallywell; part of the slide in prices of the past ten yearswas reversed, and demand continues to pick upsteadly.production efficiency, the completion of the move ofplastics manufacturing to the Czech Republic andBrazil, the integration of newly acquired companies,the savings made under the new collectivebargaining agreement at Teepak North America, andlower recurring expenses through streamlininghuman resources.Casings revenue increased 38.9% year-on-year, 14.3%in like-for-like terms (see note 1) . The closing quarter of theyear was especially strong, enabling us to continueachieving double-digit growth and to make a recordquarterly sales volume of over €105 million.In the fourth quarter, the Group attained its highesteverquarterly EBITDA, at €21.7 million, 29.8% morethan the previous year, thanks to the strength of thedemand and to the Group’s gains in efficiency andprofitability.Double-digit growth sustained throughout the entire periodMillions of euroLIKE-FOR-LIKE REVENUEREVENUEFull-year EBITDA21%79.412% 12%85.5 86.114%92.6299.6+38.9%+14.3%like-for-like416.153.512.8+45.9%11.7 78.0+24.0%1Q06 2Q06 3Q06 4Q0620052006Year-on-year change2005Like-for-likegrowthNon-recurring gains: +€5.2 millionChanges inscope ofconsolidation200619