Vidrala penalized seen its margins despite 8% improvement in net profit – Reuters Spain

MADRID (Reuters) – The packaging manufacturer announced Thursday Vidrala improved 8 percent in its net profit to June although margins were penalized by higher costs to increased competition in the sector

In a note to regulator Vidrala said its profit was 28.6 million euros, having improved by 61 percent and sales 40.7 percent Ebitda after incorporating their accounts Encirc competitor acquired earlier this year .

The EBIT operating margin was 11 percent, improving from the first quarter but very penalized compared to the average of recent years, which stood at around 15 percent (14.9 percent in June 2014).

“The margins in the sector is affected

at a competitive situation that is pushing the

selling prices, “said Vidrala in your results.

The debt improved by 17 million euros in the last three months, to 473.9 million, equivalent to 2.87 times EBITDA accumulated in the last 12 months proforma incorporating Encirc.

“The main European markets packaging

food and beverage show general signs of

recovery in demand,” he said.

The group expects to grow its earnings per share and free cash flow throughout 2015.

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