In addition, the devaluation of both the Canadian dollar and the South African rand led to a lower contribution from both operations to the consolidated turnover. This negative exchange rate effect has more than off-set the improved sales performance, in local currency, achieved in both regions. In terms of breakdown, the reduction in the consolidated turnover was due to a combination of reduced sales volumes (7.7% below 2012) and slightly lower average selling prices (-0.8% when compared to 2012).
In the 4Q 2013, compared to same quarter of 2012, consolidated turnover also decreased by 7%, with the main negative contribution coming from Northern Europe, basically as result of the stoppage of Horn PB press last September.
Sonae Indústria Recurrent EBITDA was of Euro 80 million, which translated into a recurrent EBITDA margin of 6.5%, down by 1 p.p. when compared to 2012. The non recurrent EBITDA items totalled Euro 15 million in the year and were mainly related with redundancy costs (Euro 9.4 million, 5 of which related with Solsona plant) and additional costs associated with discontinued sites (Euro 5 million). As result of these developments, total EBITDA for 2013 reached Euro 65 million.
“In terms of consolidated financial performance, turnover decreased by 7%, when compared with the previous year, which is mostly related with our reduced industrial footprint, as a consequence of the closures of the Knowsley (UK) and Solsona (Spain) plants and of the stoppage of raw particleboard production in the Horn (Germany) site. In spite of this top line evolution, it is worth noting that we have been able to increase marginally the average capacity utilization of our plants, when compared to 2012. Mostly as a result of this top line evolution, operational profitability decreased against the previous year with recurrent EBITDA of Euro 80 million in 2013 (down by 19% against 2012), generating a margin of 6.5% over turnover. Importantly, we have continued to implement several initiatives aimed at reducing fixed costs structure. These measures allowed, in 2013, for savings of more than Euro 13 million against 2012, on a comparable basis,” said Rui Correia, CEO Sonae Indústria.
Sonae Indústria is one of the largest wood based panels producers in the world. The product range includes: particleboard; MDF (Medium Density Fibreboard); hardboard; OSB (Oriented Strand Board).