Frigoglass reports higher losses in the January-September period

Frigoglass on Wednesday reported losses of 38.8 million euros in the January-September period this year.

Consolidated sales totaled 322.894 million euros, down 11.3 pct from the same period in 2015, EBITDA fell 10.6 pct to 35.926 million euros, while operating earnings fell to 12.332 million euros from 15.608 million in 2015. Net results showed a loss of 38.8 million euros in the nine-month period, from a loss of 20.572 million last year.

Frigoglass attributed this results to a change in the seasonality of sales in Nigeria, a recovery in Eastern Europe (mostly in Russia and Ukraine), a recovery in Western Europe, an increase in production costs in the glass industry in Nigeria due to a devaluation of the local currency and a favorable geographical mixture of sales.

The company, in an announcement, said the management was in talks with the main shareholder of Frigoglass Truad Verwaltungs, the ad hoc advisory commission representing bondholders and other creditors to ensure a stable and sustainable capital structure.

Nikos Mamoulis, chief executive in Frigoglass said: “A recovery of sales in Russia and Western Europe was counterbalanced by an expected impact of sales seasonality in Nigeria and a reduction of investments by our customers in Asia. For the fourth quarter, we expect the professional refrigarator sector to benefit from service sales, the seasonality of sales in Nigeria and increased demand for ICOOL systems in Western Europe. The glass sector will continue to be affected by a decline of sales in Jebel Ali and a devaluation of the Naira currency.”