Favini, among the global leaders in creating innovative graphic specialties based on natural raw materials, announces its 2017 financial results.

Favini achieved its best results in 2017 with double-digit growth in EBITDA and net profit in a market experiencing a sharp rise in raw materials, in particular cellulose.

Consolidated turnover in 2017 was Euro 159.9 million. EBITDA , which reached Euro 20.5 million or 12.8% of turnover, grew by 13.6% compared to 2016, a year over year improvement of Euro 2.5 million. Net income was Euro 5.2 million, improving by 19% compared to the previous year. Export sales continued to be predominant with a share of around 70% of total turnover. Operating cash flow continues to be very positive, demonstrating the Group's solid position in its reference markets.

The Group achieved an excellent performance in all divisions, managing to improve on the results of 2016, despite an external context characterized, as previously mentioned, by a much higher cost of cellulose compared to the previous year, with costs increasing by more than 30%. The 2017 results highlight Favini's ability to react effectively to market conditions and achieve results that are improving significantly, thanks to solid sales performance - driven by sustained demand - and to an increase in production performance.

In particular, the Graphic Specialties division achieved a significant increase in revenues, mainly realized in Europe. Demand continues to be very strong worldwide, thanks also to the general trend to replace plastic-based products with those based on cellulose. For this reason, the paper packaging industry continues to show  better performance than the traditional printing and writing market.

During the year, the Group launched an important investment plan aimed at increasing production capacity and saving energy: "We are very satisfied with the performance recorded in all divisions, which led to the achievement of excellent results. With regard to graphic specialties, the packaging industry and in particular, the one related to luxury goods, which is going through a period of a strong rise / increase in demand and is constantly looking for innovative solutions with a particular eye towards ‘green’ alternatives." says Eugenio Eger, CEO of Favini, who continues: "The favourable trend in our reference markets has convinced us to launch a programme of extraordinary investments to respond more appropriately to the expectations of our customers. We expect to see the results during the course of 2018".

Paolo Scarlatti, Managing Partner of the private equity fund Orlando Italy Management, which has been controlling the company since 2008, adds: "These are really important numbers that show positive trends for Favini and highlight the potential for the company in the specialty paper sector. Thanks to our ability to meet and - often - to anticipate the needs of the market, we have shown that we know how to grow consistently, and we look forward to achieving and doing much more."