2015 will be a year of changes for Zignago Vetro: starting with new plants to boost production. The effect of debts on profits is limited.
The challenge is to be able to reach efficiency in production and turnover again, also bearing in mind the positive signals coming from the economy. A few days ago, Banca Imi reccomended “add” for Zignago Vetro, located in Fossalta di Portogruaro (in the area of Venice), which manufactures glass bottles and containers for the food & beverage industry and wine sector, 40% of the company’s turnover, cosmetics (perfume bottles and containers for creams), special glass containers (personalized bottles for the premium range of wine and oil) and recycling.
Company shares, after a two-figure percentage loss over the past year, is now, according to analysts from Banca Imi, able to get back to EUR 6.37, which is more than a fifth higher compared to the present.
“We think that 2015 can be a come-back year for Zignago”, the report says. “Overall, we expect the ongoing activities to show an improvement in turnover both in energy costs savings, as well as regarding improvements in production efficiency.”
Websim is also optimistic, even if on a smaller scale, and has included the company among those that could benefit most from the come-back of consumption. This results in the recommendation of “neutral” having a price of EUR 6.
Benefits for Zignago Vetro are expected from investments in improving its production lines (above all furnaces and moulds), which started up a few months ago and will continue until 2017, costing EUR 120 million.
“These investments will lead to an increase in debt in 2015 (EUR 117.5 million as of end of March) which should then remain stable next year, and decrease in 2017,” Websim analysts point out, and who estimate an increase in turnover of this year of about 5.8% (Banca Imi estimates +6.1%) and Ebitda of 12.8% this year. Moreover, the rhythm seen in the first quarter of this year is helping to reach this goal, as turnover from January to March increased by 8.9% (EUR 79.4 million), Ebitda at 11.8% (EUR 17.5 million), with net income at EUR 5 million (+7.3%).