Lisi cosmetics packaging division reverses down-turn
packaging provider says that sales for its cosmetics division have
rebounded in the second quarter following a bad start to the year.
Lisi reported that second quarter revenues were up 6.3 per cent for like-for-like sales. A significant boost to the company's overall performance meant that the first half results were up a total of 5.5 per cent on a like-for-like basis to €292 million, with 49 per cent of revenues coming from outside of France.
Likewise the results, which were published for the first time using IFRS standards, show that EBITDA remained largely in line with last year's results. EBITDA stood at €43.7 million for the first half of 2005, as opposed to €43.6 million in 2004.
EBIT for the first half came in at €28.8 million, which represented 10.4 per cent of the total revenue, as opposed to 2004 when it stood at $29.4 million, or 10.1 per cent of total income.
Net income, which includes payments on loans, came in at €18 million, as opposed to €15 million in 2005, up 20 per cent in comparative terms.
The cosmetics packaging division, which currently accounts for 6.0 per cent of the company's total revenues, posted sales of €19.7 million for the first half, which was 8.8 per cent down on what the company described as being a very successful 2004.
EBITDA for the division came in at €1.5 million for the first half, representing 7.5 per cent of the total revenue, up from €1.1 million in 2004. The division also managed to turn a €0.3 million operating loss in the first half of 2004, into a €0.1 million profit for 2005.
However, the results for the first and second quarter were extremely polarized, with sales down 21.6 per cent in the first half, but up by 20.3 per cent in the second. This figure reflected significant market volatility which has been hampered by materials costs.
The company has been consolidating its cosmetics packaging operations in recent months, culminating with the sale of its loss-making Italian subsidiary Lisi Cosmetics Italia, in November last year.
Looking to the rest of 2005, the company said that it expected group inventories to drop in the second half, relflecting the normal slow-down experienced in the market during the summer. However, overall it expects that results should be in line with 2004, with consolidation and recent acquisitions possibly helping to improve overall results in value terms.
Lisi's cosmetics packaging division comprises five manufacturing facilities and over 500 staff whose activities focus on plastic injection moulding, metal stamping, surface treatments and assembly.