Aug 31, 2011. /Lesprom Network/. VPK Packaging Group's consolidated sales per end of June 2011 amounted to Euro 357.4 million compared to Euro 301.7 million over the first half-year of the past year. This represents an increase of 18.5%, as the company said in a press release received by Lesprom Network. The gross margin decreased from 53.9% over the first half-year in 2010 to 49.2% over the past half-year. Given the ongoing rise of the paper prices, and because of the normal time span necessary to translate paper price increases into an adequate rise of packaging prices, the gross margin remained under pressure and further declined. The personnel costs excluding provisions for redundancies increased from Euro 67.3 million to Euro 70.1 million (+4,3%). The pension plans in the UK are still in wind-up. While in the first half of the past year a related additional provision had to be created for an amount of Euro 2.2 million, no additional provisions had to be accounted for in the course of the first half-year of this year. Depreciation amounted to Euro 15.2 million and consequently remained at a level comparable to that of the previous year. The operational cash flow (EBITDA) amounts to Euro 33.4 million per end of June 2011 compared to Euro 30.1 million over the same period of last year. This represents an increase of 11.2%. Profitability amounted to 9.3% (vs. 9.9% HY1’10). The operating result (EBIT) amounted to Euro 17.1 million compared to Euro 13.6 million the previous year. The income taxes amounted to Euro 3.1 million, representing an actual taxation of 19.6%. In the paper segment total operating income, including internal sales, rose from Euro 68.9 million to Euro 90.3 million, an increase of 31.1%. Sales to external customers amounted to Euro 26.5 million. The rise in sales from paper is mainly due to the higher sales prices. The operational cash flow (EBITDA) generated by the paper segment amounts to Euro 12.3 million, compared to Euro 6.8 million during the first half-year of 2010. The consolidated operating income of the corrugated board segment increased by 20.1% from Euro 217.3 million per end of June 2010 to Euro 260.9 million per end of June 2011. Partially, this increase is due to volume growth, and partially to higher packaging prices. The operational cash flow (EBITDA) of the corrugated board segment amounts to Euro 13.6 million, compared to Euro 14 million during the first half-year of 2010. The consolidated operating income of the specialties segment further grew to a level of Euro 71.9 million over the first 6 months of this year. This represents an increase of 10.4%. This increase mainly relates to higher sales prices. The operational cash flow (EBITDA) of the corrugated board segment amounts to Euro 2.6 million, compared to Euro 4 million during the first half-year of 2010. VPK Packaging Group NV is a vertically integrated Belgian packaging group disposing of 46 companies spread across 12 European countries, employing 3,200 people.