Warsaw (Puls Biznesu) - Management give the first quarter results and predict increase of net income in the whole year up to PLN 115m. And some new investment ass well.
Until the end of the year, the management of Pfleiderer Grajewo, pubic producer of flags, will have prepared the strategy for 2007-11.Some of the key point could be seen today. Investments will probably be connected to geographical broadening of activity and new products.
“We are interested in presence in Baltic countries and former soviet republics. In case of new product we are still analyzing”, Paweł Wyrzykowski, president of Pfleiderer Grajewo said.
Earlier it was said about flor panels’ production.
“It is one of the most interesting options. We would like to be independent from furniture sector”, Paweł Wyrzykowski said.
At the moment the company is in the course of investment program. At the beginning of third quarter, the new plan of MDFB flags is expected to start. In April, the production of laminated flag, begins.
“At the moment we are buying the rough flag and processing it. In the third quarter we will produce it by ourselves”, Paweł Wyrzykowski said.
The Russian subsidiary should give this year the revenue of EUR 20m. In 2008 they should rise to EUR 80m.
“As the only one, we are in the second part of sale 43 percent shares of Prospan (Pfleiderer Grajewo owns the rest). We are afraid that uncertainty in politics will make that process longer. From our side we did everything – we put concrete offer”, Paweł Wyrzykowski said.
This transaction, that should happen in the course of few next weeks, is important because on that basis the forecast of financial results for 2006 has been prepared.
“We take also the euro exchange rate for PLN 3.90. After first quarter it has occurred that the change by 10 PLN groszy resulted in PLN 2m change in net income”, Paweł Wyrzykowski added.
The group predict PLN 1.15bn revenue and PLN 115m net income. That is 15 and 25 percent more than last year. Anyway, first quarter was not the best. Net income fell by 25 percent (year to year) to PLN 14.2m, when sales rose by 10 percent, to PLN 253m. Worse profitability is mainly due to long winter and higher prices of electricity. The management board of Pfleiderer Grajewo will recommend the whole last year income (PLN 90 m) to be pay back to the shareholders. The same with income from 2006.