Plastic pipe systems provider Wavin (Zwolle / The Netherlands; www.wavin.com) has reported operating profits of EUR 149.8m in 2007, a 24.6% increase on 2006. EBITDA increased 8.0% to EUR 212.1m on sales up 7.8% at EUR 1.62 bn. Wavin CEO Philip Houben said that 2007 had been a “very satisfying year” with records in revenues and profits. The first half of the year brought significant growth (12.3% compared with the first half of 2006), thanks to favourable weather conditions and a strong market. Despite a sharp drop in demand in a number of key countries, revenues in the second half year increased by 3.5%.

During 2007, the company made further steps in improving earnings through its focus on value-added products and solutions and further increased its stake in central and eastern Europe, which now accounts for almost 20% of revenues. In 2007, sales in the region were up 9.4% and EBITDA up 17.8% compared with 2006. The construction markets in Russia and Ukraine continued to develop and the company expanded its sales and marketing efforts in these countries during the year.

Wavin expects a challenging period ahead in the construction sector as the effects of the unravelling “credit crisis” on the European building markets become clear. While the depreciation of the GBP and decline in the Irish construction market are causes for concern, the company sees continued construction activity in the emerging central and eastern European markets. The company’s sales growth has recently outperformed the European construction market and it is confident that it can continue the trend in coming years.

e-Service:
Wavin press release on H2 and full year 2007 as PDF document (166 KB)