Hadera, Israel, 08 March 2010 -- Paper products maker and recycler Hadera Paper Ltd. (AIP: News
) on Monday reported a rise in profit for the full year 2009, helped primarily by a year-on-year increase in net sales. Going forward, the company expects the trend of improving paper prices worldwide to continue throughout 2010.
For fiscal 2009, net earnings attributable to shareholders were NIS 91.23 million or NIS 18.03 per share compared with NIS 69.71 million or NIS 13.77 per share in the prior-year period.
Earnings growth was affected by improvement in operating profitability at some of the group's companies in Israel and in Turkey and by recording of earnings as a result of distribution of a unilateral dividend on account of application of a preferred share by an associated company that generated net revenues of NIS 8.4 million for Hadera.
The improved profitability also reflects a reduction in the company's share in losses from operations in Turkey with regard to the prior year.
Full year net sales increased to NIS 892.00 million from NIS 673.48 million in fiscal 2008. Hadera attributed the growth in net sales to the first-time consolidation of data of Carmel and Frenkel-CD in the reported period, in the amount of about NIS 477.8 million, as compared with their consolidation for only part of last year in the sum of NIS 160.9 million.
The company's share in the profits of associated companies was NIS 87.4 million compared to NIS 51.3 million in the same period a year ago. Hadera's share in the net income of Mondi Hadera Paper rose by NIS 4.5 million, primarily from an increase in the operating profit of Mondi, that grew to NIS 40.5 million from NIS 34.1 million in the year-earlier period. The company's share in the net earnings of Hogla-Kimberly Israel rose by NIS 21.5 million. Hadera's share in the losses of KCTR Turkey was reduced by NIS 8.1 million.
Full year operating profit plunged to NIS 15.6 million from NIS 35.4 million in 2008. The decrease in operating profits originated from the erosion of selling prices coupled with the quantitative erosion of packaging paper and recycling as a result of the imports of packaging paper at dumping prices that was offset by recording of nonrecurring revenues of NIS 16.4 million on account of a unilateral dividend.
During the 12-month period, financial expenses totaled NIS 18.3 million as compared with NIS 15.0 million in corresponding period prior year.