Financial Information - Uralita
Financial Information - Uralita
Financial Information - Uralita
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ANNUAL REPORT 2006<br />
FINANCIAL INFORMATION<br />
The <strong>Uralita</strong> Group. Management Report<br />
2006<br />
1. RESULTS<br />
The <strong>Uralita</strong> Group completed its 2004-2006<br />
Strategic Plan satisfactorily in 2006. It<br />
successfully carried out all planned non-core<br />
asset disposals with the sale in January of the<br />
Coverings Business, while it enhanced the<br />
operating efficiency of its four core businesses,<br />
bringing them into line with benchmark levels in<br />
their respective sectors. Net profit attributable to<br />
equity holders of the parent was €47.3 million,<br />
34.4% higher than the year before and a new<br />
record for the <strong>Uralita</strong> Group.<br />
Consolidated revenue totalled €1.005,2 billion.<br />
Foreign operations accounted for 52% of the<br />
total, outstripping domestic sales for the first<br />
time. Like-for-like revenue growth (i.e. stripping<br />
out the disposals of non-core businesses) was<br />
11.4%. Broadly speaking, the Group fared well<br />
in all its markets in 2006. In Spain, new<br />
construction saw a record 815,000 building<br />
permits (11.7% higher than in 2005), while in<br />
Germany the construction sector staged its longawaited<br />
rebound, growing 6%. Meanwhile, other<br />
Central and Eastern European markets remained<br />
buoyant. The blemish was the Portuguese<br />
residential construction market, which fell 5.7%<br />
from the year before.<br />
EBITDA in 2006 amounted to €178.2 million, a<br />
18.4% increase on 2005 despite the Group's<br />
smaller size. Like-for-like growth (i.e. exdisposals)<br />
was 39.6%. The consolidated EBITDA<br />
margin for the year was 17.7%, 4.1p.p. higher<br />
than in 2006, driven by wider margins in core<br />
businesses (+3.6p.p.) and the Group’s<br />
withdrawal from non-core and, generally, less<br />
profitable businesses (+0.5p.p.).<br />
Profit for the year was €70.6 million, a 31.7%<br />
gain despite the smaller business scope. The net<br />
profit margin increased significantly from 2005,<br />
to 7.0%, placing the Group at benchmark<br />
profitability levels within its industry.<br />
During the year, the <strong>Uralita</strong> Group cut net debt<br />
by €36 million to €104 million.<br />
2. RESULTS BY BUSINESS<br />
External conditions for the Insulation Business<br />
were positive, underpinned primarily by strong<br />
growth for insulation products in Central and<br />
Eastern Europe. This led to an imbalance<br />
between supply and demand in the glass wool<br />
segment, which enabled the Group to pass on<br />
the increase in raw material costs to end<br />
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