EQS Group-Ad-hoc: Airopack Technology Group AG / Key word(s): Final Results
Airopack Technology Group AG: Airopack reports 2017 production and sales
growth
22-March-2018 / 06:50 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 KR
The issuer is solely responsible for the content of this announcement.
Ad-hoc release / Press Release
*Airopack reports 2017 production and sales growth*
*- New production platforms brought up to speed - 40 million Airopacks
produced*
*- Net sales increased by 90% compared to the previous year, totalling EUR
21.5 million*
*- EBITDA improved by EUR 7.5 million compared to 2016*
*- Net loss of EUR 40 million related to investments in organization and
production capacity for planned growth*
*- Expectation to reach annual production and sales run rate of 100 million
Airopack dispensers in the second half of 2018, leading to the break-even
EBITDA point*
Baar, 22 March 2018 - Airopack Technology Group AG ("Airopack"),
manufacturer of the Planet Friendly Aerosol, today announced its results for
full year 2017. Over the year, the new Waalwijk factory was upgraded and
improved, with almost 40 million Airopack dispensers manufactured in 2017.
Airopack also succeeded in securing several breakthrough contracts with both
existing and new customers. The company achieved net sales of almost 21.5
million euros and is on track for an annual production and sales run rate of
200 million Airopack dispensers by the end of 2018.
Airopack produces a safe, all-plastic pressurized dispenser powered purely
by air that is environmentally and planet friendly. It was developed by
Airopack Technology Group, which holds the relevant patents and is worldwide
the sole producer of this unique Planet Friendly Aerosol.
Quint Kelders, Chief Executive Officer, said: "2017 was a momentous year in
various aspects. First and foremost, we brought our new Waalwijk
(Netherlands) plant up to speed, while testing, improving as well as
expanding the various production platforms. As a result, in 2017, almost 40
million Airopack dispensers were manufactured in the Dutch plant. Secondly,
Airopack succeeded in securing several breakthrough contracts with both
existing and new customers. Based on the production experiences to date, in
combinations with growing customer demand, we confirm the expectation to
reach an annual production and sales run rate of 100 million Airopack
dispensers in the second half of 2018, leading to the break-even EBITDA
point."
*General*
Due to the continued strong customer demand in 2017, Airopack started
preparations to increase production capacity from an initial 80 million to
200 million Airopack dispensers annually. While preparing the plant for this
expansion, the company produced almost 40 million of the 53mm RTF Airopacks.
For this purpose, the plant manufactured over 357 million single components
in 2017. Whereas production of PET Preforms and PET Containers was
previously outsourced to a joint venture partner, these parts are now fully
produced in-house at the new plant, with manufacturing numbers totalling
almost 160 million parts.
Airopack also recruited and trained 125 specialized full-time employees in
2017 for the new Waalwijk (Netherlands) plant. Over time, the teams moved
from one shift to two shifts and eventually three shifts by the end of the
year, utilizing the installed capacity step-by-step at a realistic and
manageable pace.
Given the robust commercial pipeline, in 2017 the Board of Directors
approved a plan to further increase the installed production capacity in
Waalwijk (Netherlands) to 200 million Airopack dispensers annually. A first
step has been taken at the end of the reporting year.
In line with its strategy to be a market leader, Airopack has also
introduced a new and improved quality standard. The company set an
Acceptance Quality Limit of 0.065 for critical defects, which is a target
well beyond the current market standard. All manufacturing technology and
processes were adapted to ensure that this improved and market leading AQL
was achieved.
Airopack believes in high-quality, innovative and sustainable products and
is proud to announce to have produced with a 38% lower carbon footprint and
55% lower environmental footprint in comparison to traditional Aluminum Bag
on Valve aerosol.
To further increase the international presence of Airopack products, in
December 2017 we joined the Comité Français des Aérosols (CFA), which is a
key step for increasing market penetration of our Planet Friendly Aerosol.
*Financial highlights*
The full 2017 annual report is available for download on the Airopack
website (www.airopackgroup.com [1]) under the link - investor relations -
reports (www.airopackgroup.com/en/investor-relations/reports [2]).
*Sales*
During 2017, the company sold 32.9 million units, more than quadrupling the
sales over 2016 (7.3 million units). More importantly, the 2017 sales volume
represents a 57% increase over the 2015 number of 21 million units, which
was the last full year of production in our former factory in Bilten
(Switzerland).
Airopack's subsidiary Airosolutions successfully refocused its business on
the production and sale of the Airoball Lip Care products, which are
produced for Beiersdorf under the Labellino brand. During 2017, the
production of components was insourced, thereby increasing quality control
and supply chain security. The success of this product, which was entirely
designed and developed by our own R&D team, has led our customer to
significantly extend the number of related product applications for 2018.
Net sales for the year increased by 90% compared to the previous year,
totalling EUR 21.5 million. This is a direct result of the increased sales
of Airopacks, which represented a value of EUR 13.1 million compared to EUR
3.4 million in 2016. Airosolutions saw its sales grow to EUR 8.5 million
compared to EUR 7.9 million in the previous year.
Airopack succeeded in securing several breakthroughs with both existing and
new customers, which will considerably boost sales in 2018. These include
Procter and Gamble, Edgewell, Morning Glory, and Icon Brands, among others.
*Result development*
The results over 2017 progressed against the results over 2016, with EBITDA
improving by EUR 7.5 million. Efficiency improvements and investments in
ramping up production capacity while securing high product quality during
the year, explain the negative EBITDA of EUR -21.0 million. The capacity
increase led to increased charges for depreciation (2017: EUR -5.1 million),
which, combined with the cost for amortization (2017: EUR -9.7 million) and
interest costs (2017: EUR -9.1 million), resulted in a net loss of EUR 40.1
million. This includes EUR 3.4 million of exceptional costs for impairment
and consultancy charges.
*Outlook*
While 2017 was the company's first full year of production in the Waalwijk
plant, 2018 will be a year of further capacity expansion, production
improvements, and utilization optimization. Airopack will continue to invest
in increasing its production capacity over the year, while carefully
monitoring production quality. Our core value remains continuing to produce
at the highest quality standards.
Due to growing customer demand and pipeline development, we plan further
modular expansion of production at Waalwijk over the course of 2018. In a
two-step approach the company will increase its annual production capacity
to 200 million Airopacks at the Waalwijk plant, a level it is expecting to
reach by the end of 2018.
The company is also making substantial progress with attracting and
contracting new customers, both in the EU and the US. Additional contracts
are expected to be announced over the course of 2018.
The Board of Directors and Group Management confirm the earlier expressed
expectation to reach an EBITDA break-even run rate during the second half of
2018. Break-even levels will be achieved once operating at an annual
production and sales run rate of 100 million Airopack dispensers, which is
an equivalent of 8.3 million pieces per month. The expectation is
substantiated during the production and sales increases in 2017, measured on
a month by month bases, which demonstrated significant EBITDA improvements
per million volume increase.
The Board of Directors and Group Management remain confident that the
medium-term goal of a run rate volume of over 700 million Airopack
dispensers annually can be achieved, compared to a total aerosol market of
15.48 billion annual units as of the end of 2015.
*Events after closing date*
On 8 February 2018, Airopack closed the acquisition of Scholle IPN Equipment
B.V., the Airopack production partner for its full range of Airofiller
filling equipment (www.airofiller.com [3]). With this acquisition Airopack
secures the production capacity to keep up with the strong growth in demand
for Airofiller equipment by both Airopack clients and contract fillers
resulting from the growing demand for the Airopack Planet Friendly Aerosol.
Airopack has also secured additional debt and lease facilities from Rabobank
to fund the acquisition and for capacity growth purposes.
To demonstrate progress the company has made in the past year, Airopack will
organize a plant visit for a number of investors at its state-of-the-art
plant in Waalwijk (Netherlands) in the second quarter of 2018.
*For more information:*
*For investors*:
Airopack Technology Group AG
Quint Kelders, CEO / Liebwin van Lil, CFO
Blegistrasse 5/ 1 OG
CH-6340 Baar
T: +41 41 768 50 50
E-Mail: quint.kelders@airopackgroup.com
E-Mail: liebwin.vanlil@airopackgroup.com
*For media :*
Hill + Knowlton Strategies
Frans van der Grint
T: 31 (0) 20 404 4707
E-Mail: frans.vandergrint@hkstrategies.com
Airopack Technology Group AG ("Airopack"), manufacturer of the
Planet Friendly Aerosol, is a leading developer and supplier of
mechanical and pressure-controlled dispensing packaging
technologies and systems for manufacturers and suppliers of
cosmetics, body care, home care, pharmaceutical and food
products. The revolutionary Airopack(R) technology offers a
safe, all-plastic pressurized dispenser that is environmentally
and planet friendly. Airopack holds the patent and is worldwide
the sole producer of this unique dispenser.
Airopack operates a production facility for Airopack
ready-to-fill dispensers in Waalwijk (Netherlands), a
full-service filling operation (Airosolutions) for ready-to-sell
Airopack dispensers in Heist-op-den-Berg (Belgium) and a
manufacturer of Airofiller filling equipment (Airofiller
Equipment Solutions) in Houten (Netherlands). The Global
Research and Development Team, the Airopack Global Management
and the Customer Service Organisation are also based in Waalwijk
(Netherlands).
The shares of the company are listed on the Swiss Reporting
Standard of the SIX Swiss Exchange since 2010. (Ticker: AIRN /
ISIN: CH0242606942).
www.airopackgroup.com
End of ad hoc announcement
Language: English
Company: Airopack Technology Group AG
Blegistrasse 5
6340 Baar
Switzerland
Phone: +41 417663500
Fax: +41 417663509
E-mail: liebwin.vanlil@airopackgroup.com
Internet: www.airopackgroup.com
ISIN: CH0242606942
Listed: SIX Swiss Exchange
End of Announcement EQS Group News Service
667205 22-March-2018 CET/CEST
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(END) Dow Jones Newswires
March 22, 2018 01:50 ET (05:50 GMT)
