Frigoglass Annual Report 2011

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Business review Frigoglass Annual Report 2011
Glass
Operations
2011 was a milestone year for our Glass Operations. It began with the Jebel Ali
acquisition and ended with record full year results.
In 2011, Glass Operations achieved its
strongest ever result, with sales increasing
26.3% in 2011 to €103.5 million. This
performance comprises 7.9% organic growth,
led by the Brewery sector, with seven months
of Jebel Ali contributing €15.1 million of sales.
Sales within the Metal Crowns and Plastic
Crates businesses increased by 12% to
€28.4 million in 2011, with both businesses
recording solid growth in sales.
EBITDA increased by 10.9% to €28.1
million in the full year, delivering a margin of
27.1% compared to 30.9% in the prior year.
Excluding Frigoglass Jebel Ali, the EBITDA
margin was 28.6% for the full year.
Operating Profit (EBIT) increased by 4.8% to
€16.4 million for the full year, equating to an
EBIT margin of 15.8% which compares to
19.1% in the prior year. The decline in margin
is, in part, attributable to the integration phase
of Frigoglass Jebel Ali. Net profit declined by
6.4% to €7 million for the full year compared
to €7.4 million in the prior year, impacted by
higher net financial expenses related to the
Frigoglass Jebel Ali acquisition.
The acquisition of Jebel Ali represented
an important strategic achievement for
Frigoglass. Not only did it consolidate our
existing strong position in the manufacturing
of glass bottles and jars, it also provided a
complementary position in the East and South
Africa markets as well as an opportunity to
expand to the Middle East and Asia where
demand for glass containers has consistently
outstripped supply in recent years. The
integration of Jebel Ali is progressing in line
with expectations.
Glass Operations sales
(in €m)
2010 2011 % change
Glass 56.6 75.1 * 32.7
Metal crowns 11.6 12.2 5.2
Plastic crates 13.8 16.2 17.8
Total 82.0 103.5 26.3
* includes the impact from the acquisition of
Frigoglass Jebel Ali for a seven-month period