By Mireia Merino
GDANSK (Reuters) -Spanish meat-packaging maker Viscofan reported on Wednesday a 3.1% increase in net profit to 38.4 million euros ($44.08 million) in the second quarter from the prior year, as higher sales volume and cost savings offset the impact of U.S. dollar depreciation.
BY THE NUMBERS
In the second quarter, the company’s revenues increased 2.7% to 311.5 million euros, while its earnings before interest, taxes, depreciation, and amortization (EBITDA) grew by 9% to 76.34 million euros compared to a year earlier.
The North American and South American regions saw the highest revenue growth, with increases of 5.5% and 6.5%, respectively.
WHY IT’S IMPORTANT
Viscofan’s solid second-quarter performance underscored resilient demand for its sausage casings despite broader economic uncertainty.
The results showed growth from both the same period of last year and the first quarter.
The U.S., where the company has three production plants, is Viscofan’s second-largest market after Europe, accounting for 31.5% of its revenue.
CONTEXT
Viscofan shares had fallen around 8% since end-April due to lower-than-expected EBITDA growth in the first quarter and a 7% decline in net profit to 31.4 million euros due to negative exchange rate differences.
WHAT’S NEXT
The company said its operating performance is in line with the full-year guidance announced in February.
($1 = 0.8712 euros)
(Reporting by Mireia Merino; Editing by Cynthia Osterman)
