Capacity increase at Airopack
In 2014, a total of 17.9 million pieces of Airopack dispensers used in PET containers were shipped to customers, compared to 1.4 million pieces in 2013. The majority of the volume was shipped to the globally leading personal care company Procter and Gamble for their shave care brand Gillette Fusion Proglide. On top of volumes shipped to other existing customers like Method Products and Elizabeth Arden, Airopack Group was able to add various new consumer brands such as Aproz, Acure Organics and HAND Chemistry to its sales portfolio in 2014.
On the consolidated level the net sales amounted to EUR 7.2 million, compared to EUR 1.0 million in 2013. The consolidated income statement shows a net loss of EUR 6.1 million. Even though the consolidated EBITDA showed a significant improvement compared to 2013, this was largely off-set by increased depreciation and financing costs.
In view of the contracted and expected increase in sales volumes, Airopack will increase its production capacity to 80 million Airopack dispensers per year in 2015 and plans a further increase to 160 million per year in 2016. The required capital expenditure for production equipment, as well as the related working capital needs, are estimated at approximately EUR 25.6 million. Where possible, Airopack will attract external financing such as leasing and factoring. The remainder will be funded from credit facilities committed to the joint venture. To secure the Group’s liquidity and the planned investments, the Board of Directors has decided to effect a capital increase which will generate EUR 8.5 million in cash.
Based on the contracted and expected increase in sales volumes, Airopack Technology Group expects its 2017 consolidated sales to range between EUR 100m and EUR 130m with a consolidated EBIT-margin of between 13% and 15%.
