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Befesa Announces 2005 Financial Results

In the 2005 financial year, the sales of the Environmental Services Business Unit increased by 44.6 million euro on the previous year, a 12.5% increase. This has been due, mainly, to the increase in volume of treated wastes in all the Group's areas, together with the increase in activity in the Environmental Engineering area.

2005 Financial Results
 December 2005December 2004Variation (%)
Sales402.4357.812.5 %
EBITDA40.436.710.2 %
EBITDA / Sales10.610.9-2.2 %
EAT17.516.28.2 %
EAT Parent Company16.114.98.1 %

As regards the EBITDA, it has increased by 3.7 million euro (+10.2%) on the previous year. The EBITDA/Sales ratio has remained steady at around 10%, a percentage similar to that of the 2004 financial year.

Both the EAT and EAT of the Parent Company have evolved positively and risen to 17.5 and 16.1 million euro, respectively, with these figures being an 8.2% and 8.1% increase on those achieved the previous year.

The evolution by Business Unit was as follows:

  • Aluminum Waste Recycling: The evolution of this Business Unit has been positive, in line with the previous year, due to the large volume of wastes treated, the maintaining of margins, and the progressive consolidation of the costs structure implemented last year. A clear example thereof is the 4.4% increase in sales this year compared to the previous year, as a consequence of the higher number of tons of aluminum sold, together with the increase in the price of the metal and the notable progress of the salt slags business.
  • Zinc Waste Recycling: The evolution of this Business Unit has also been positive, with a 7% increase in the sales on the previous year. This increase is due, above all, to the increase in prices.
  • Industrial Waste Management: In this activity, in comparison to the previous financial year, a growth in all the magnitudes of the profit and loss account can be seen, and this is further proof of Befesa's intention to continue its growth in this field of activity, considered the core of its business. Sales in this area in 2005 reached 79 million euro (a 7.5% increase).
  • Environmental Engineering: It is the Befesa Business Unit that has experienced the greatest increase in sales on the previous year's figure. This demonstrates the company's growth potential for the future and its concern for developing new technologies. The increase in sales on the previous year was 38%. In addition, the medium term prospects for this activity are attractive as a consequence of the Unit's large portfolio of contracted works. An example of the growth objectives laid down can be seen in the fact that at year-end 2004 the contracting portfolio figure was 182 million euro, while at year-end 2005 it was 267 million euro.