Australia“s Penrice Soda Holdings has increased 1H underlying net profit by 4% and expects full year profit to beat the result for 2009.
The Adelaide-based chemicals manufacturer reported underlying…
Australia“s Penrice Soda Holdings has increased 1H underlying net profit by 4% and expects full year profit to beat the result for 2009. The Adelaide-based chemicals manufacturer reported underlying net profit of AUD 2.35 million, up from AUD 2.27 million. The profit after abnormals was AUD 3.13 million, up from a AUD 2.4 million loss in the previous corresponding period with a AUD 5.45 million swing in the effect of unrealised hedging accounting for the difference. The profit was achieved on sales revenues of AUD 77.9 million, up 5%. Both the company“s chemical and quarry and mineral businesses reported growth in pre-tax earnings. The chemicals division added 11% to earnings, which came in at AUD 7.6 million, with stronger offshore demand for sodium bicarbonate tempered by reduced demand for that mineral and soda ash domestically. The stronger Australian dollar during the six months to the end of December 2009 also cut AUD 2 million from earnings for the chemicals division. Penrice chief executive Guy Roberts said the chemicals business was performing strongly. “The chemicals business benefited from an increase in sodium bicarbonate production capacity, growth in sodium bicarbonate export volumes and price rises in both sodium bicarbonate and soda ash,” Mr Roberts said. “Growth was partially offset by slightly reduced sodium bicarbonate and soda ash volumes in the domestic market and a AUD 2 million negative impact to export earnings from a stronger Australian dollar. The company said a general meeting in July 2009, at which London City Equities tried to have chairman David Trebeck and then-chairman John Heard removed from the board, plus the cost of a community consultative group for the Angaston mine, cost the company AUD 400,000. Despite the company returning to profit, dividend payments remain suspended with cash conservation the priority.