Asaleo Care presented 2018 half year results for the 6 months ended 30 June 2018 on Tuesday 21 August 2018. Personal care company reported underlying Net Loss After Tax (NLAT) of $101.5 million for 1H18 compared to $27.7 million profit in the previous corresponding year. The statutory result includes non-cash one off impairment cost of $148.5 million.
Underlying 1H18 earnings before interest tax, depreciation and amortization declined 24% to $46.3m which includes Tissue EBITDA of $20.0m, down 38.8%, and Personal Care EBITDA of $26.3m, down 6.7% on 1H17. Revenue decreased by 9% to $267.2 million in first half of 2018 due to lower retail sales volumes and higher costs.
The group has achieved price increase during the reporting period but there has been no price increase from their rivalries. As a result, sales volumes lowered down in price negotiation with customers. The company reported weaker returns with 3.3 cents earning per share and 12% return on invested capital for 1H18.The board has declared no interim dividend for the half year 2018.
In FY18 guidance, company forecasts $80 million to $85 million underlying EBITDA.
Despite receiving announcement on lower sales volume and resultant losses incurred during the first half of 2018, investors continued to inject money in personal care provider, AHY as share price moved up by 11.9% to $0.795 on Tuesday (as the result was earlier expected to be much worse than what has been reported).
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