Austerity measures work for Neschen
IN THE financial reporting year 2010, self-adhesive materials producer Neschen was brought back on course for growth. All key revenue figures improved considerably. Following the high operating losses of the previous two years, 2010 produced a virtually balanced operating result. The measures implemented in 2009 to reduce personnel and material costs had a positive effect on the operating result.
In the last financial year, Neschen achieved sales of euro 98.9 million (previous year: euro 96.1 million). Adjusted for the revenue from the archive centres, sold in the meantime, sales growth amounts to 4.4 percent. Due to developments in raw material prices, the gross margin fell to 41.6 percent (previous year: 43.3 percent).
“After a slow start to the year, we noted an increased demand for products in the graphics industry from the second quarter of 2010 onwards,” Stefan Zinn, member of the board of Neschen, emphasised. “Here, we profited in particular from the positive economic climate in important sales markets as well as from the successful launch of new products.”
The measures initiated and implemented in the financial year 2009 to reduce personnel and material costs had a positive effect on the operating result. It was possible to further reduce expenditure on personnel to euro 20.7 million (previous year: euro 24.0 million) and on materials to euro 19.3 million (previous year: euro 21.3 million).
The improved cost structure led to a virtually balanced operating result. The Group EBIT totals euro -0.6 million (previous year: euro -5.1 million), the EBITDA euro 2.3 million (previous year: euro -1.6 million). After tax, an expected loss of euro 3.3 million had to be absorbed. (Previous year: profit euro 7.9 million, adjusted for the extraordinary effect of a credit waiver of euro 8.2 million).
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