Italy's Reno de Medici has significantly increased its profits for the first half of the year thanks to reduced production costs. Deliveries fell a little and caused a minor reduction in sale
Italian recycled board manufacturer Reno de Medici (RDM) has significantly improved its half-year results year-on-year. Although demand fell a little the company was able to generate profits that were around €9m higher than in the first six months of 2013. Operating profit in the first half amounted to €13.67m (H1 2013: €4.39m) while net profit rose from €245,000 in the first half of 2913 to €9.16m in this year's January-June period.
Reno de Medici said it mainly benefited from lower production costs. The company spent €181m for raw material and services in the first six months of the year, which is a reduction of €7m year-on-year.
RDM's sales declined slightly in the first half, by 1.1% to €238.88m. The company said the sector in which it operates had evolved in line with the general economic scenario, adding that European demand for recycled board had slightly decreased compared to the same period of the previous year. Against this background, RDM sold 449,000 t of board, while deliveries had amounted to 455,000 t in the first half of 2013.