Airopack Technology Group AG: Airopack reports production and sales growth

    Airopack Technology Group AG: Airopack reports production and sales growth

^
EQS Group-Ad-hoc: Airopack Technology Group AG / Schlagwort(e):
Halbjahresergebnis
Airopack Technology Group AG: Airopack reports production and sales growth

29.09.2017 / 08:34 CET/CEST
Veröffentlichung einer Ad-hoc-Mitteilung gemäss Art. 53 KR
Für den Inhalt der Mitteilung ist der Emittent verantwortlich.

---------------------------------------------------------------------------

Ad-hoc release / Press Release

Airopack reports production and sales growth

- Strong production growth in H1 2017 with 89% increase to 18.1 million
Airopack dispensers

- Net loss of EUR 19.5 million due to scale-up of organization and
production capacity for planned growth

- Substantial progress with multiple new EU and US based global customers

- Annual run rate of 200 million planet friendly aerosols expected end 2018

Baar, 29 September 2017 - Airopack Technology Group AG ("Airopack"),
manufacturer of planet friendly aerosols, today announced its results over
the first half of 2017. After the opening of the new Waalwijk factory in
December 2016, the first half of 2017 was marked by strong growth in
production volumes of Airopack dispensers, meeting the highest quality
standards in the industry. With the further scale-up of the organization and
production capacity, the company is on track towards an annual production
and sales run rate of 200 million Airopack dispensers by the end of 2018. In
the second half of 2017 the company expects production and sales volumes to
continue to grow steadily.

Airopack produces a safe, all-plastic pressurized dispenser powered purely
by air that is environmental and planet friendly. It was developed by
Airopack Technology Group, which holds the relevant patents and is worldwide
the sole producer of this unique dispenser.

Quint Kelders, Chief Executive Officer, said: "Our focus in the first half
of 2017 was on a controlled ramp-up of production volumes of Airopack
dispensers that meet the highest quality standards in the industry. We
invested in a further expansion of our sales, marketing and production
organization, to be ready for the planned growth with our expanded team of
qualified employees. We made substantial progress in commercial discussions
with new customers and passed their qualification tests for both the
Airopack dispenser and our state-of-the-art plant in Waalwijk. We are
building a solid and balanced sales pipeline to fill the scheduled increase
of installed production capacity to 200 million Airopack dispensers annually
and are satisfied to have secured the funding for the upscaling."

General
In the first half of 2017, good progress was made with scaling up the
organization, production volumes and sales. While still in the middle of its
production ramp-up phase, Airopack produced a total of 18.1 million Airopack
dispensers in the first half of 2017, reflecting an 89% volume increase over
the same period of 2016. Airopack is steadily increasing its monthly
production run-rates.

Due to continued strong customer demand and interest, the company started
preparations to increase its production capacity from the initial 80 million
to 100 million Airopack dispensers annually, requiring only minor additional
investments in moulds expected to be delivered in the last quarter of 2017.
A subsequent doubling of installed production capacity is anticipated
through a modular expansion to 200 million Airopack dispensers annually over
the course of 2018. Customers that have launched new product lines using the
Airopack dispensing technology include Procter & Gamble for Gillette Venus
shave gel, Edgewell for Bulldog shave gel, Abercrombie & Fitch for room
spray, Morning Glory for shave gel, Saint Tropez Brands for sun care and
Peritus Brands for clothing spray.

Airosolutions, the Belgian in-house Airopack full-service filling operation
and developer and manufacturer of other innovative packaging solutions for
personal care customers, successfully launched a new product for Beiersdorf.

At the end of June 2017, Airopack employed 163 people, compared to 93
employees by the end of June 2016.

Financial highlights

                                   in TEUR      in TEUR
                          General  HY 2017      HY 2016
    Consolidated income statement
    Net sales                       11'181        6'024
    EBITDA                         -10'390      -11'605
    EBIT                           -17'712      -14'566
    Net result                     -19'533      -16'226
    Net result per share in EUR      -1.06        -1.15

    Consolidated cash flow           3'814        3'867

    Consolidated balance sheet
    Cash and cash equivalents       12'157        6'784
    Shareholders' equity           -16'336  1)  -15'183
    Balance sheet total             98'292       82'669
1) See events after closing date

Sales
Net sales amounted to EUR 11.2 million, an increase of 86% over the first
half of 2016. EUR 7.1 million of net sales were achieved by Airopack
(ready-to-fill Airopack dispensers) and EUR 4.1 million came from
Airosolutions (ready-to-sell-Airopack dispensers and other packaging
solutions).

Result development
The effect of the scale-up of the organization and production capacity of
Airopack's Waalwijk plant is clearly visible in the results for the first
half of 2017. Although good progress has been made with the controlled
ramp-up of production volumes in the first half of 2017, the actual
production volume of 18.1 million Airopack dispensers was still
substantially below the initial installed production capacity of 80 million
annually during this ramp-up phase, thereby limiting the sales growth. At
the same time, the Airopack management, sales, marketing and quality control
organization is already sized to support production and sales growth well
beyond 80 million Airopack dispensers annually.

The significant growth of production volume and sales in the first half of
2017 was therefore not yet sufficient to cover the enlarged fixed operating
costs, which grew by EUR 3.8 million. EBITDA was slightly better than the
same period last year, but still a negative EUR 10.4 million. This includes
EUR 2.3 million of exceptional costs, mainly for consultancy services
related to the development of production and quality systems.

Increased amortization and depreciation (EUR 7.3 million), financing costs
(EUR 4.2 million) and positive income taxes (EUR 2.4 million) resulted in a
net loss of EUR 19.5 million in the first half of 2017 against an EUR 16.2
million loss in the same period in 2016. The increase of amortization mainly
relates to the goodwill paid with the acquisition of the 50% stake in the
Airolux joint venture in May 2016 and the increase of depreciation mainly
relates to investments in production equipment for the new facility in
Waalwijk.

Outlook
In the first half of 2017 Airopack has made substantial progress with
multiple new global key customers in the personal and home care markets in
both the EU and the US by passing their stringent qualification tests for
both the Airopack dispenser and the Waalwijk facility. Consequently,
concrete contract negotiations with these new customers, including timing of
market launches, volumes and prices, are now in an advanced stage.

Due to the robust commercial pipeline the Board of Directors approved on 21
June 2017 a plan to increase installed production capacity at the plant in
Waalwijk from the initial 80 million Airopack dispensers annually to 200
million. This plan will see a first-step increase in installed production
capacity to 100 million Airopack dispensers annually by the end of 2017 and
the subsequent doubling of installed production capacity through a modular
expansion towards 200 million Airopack dispensers annually over the course
of 2018. As previously announced, the funding for this project has been
secured with a combination of a capital increase for EUR 12 million, an
additional EUR 10 million debt facility provided by funds managed by
affiliates of Apollo Global Management, LLC as well as lease and factoring
facilities provided by Rabobank and KBC Bank respectively.

Airopack expects production and sales volumes to continue to grow steadily
in the second half of 2017. This is expected to result in an ongoing
positive evolution of results through better coverage of the fixed
production and organizational cost base and improved operational efficiency.

Airopack expects that it will reach EBITDA break-even at a production and
sales run rate of 100 million Airopack dispensers annually.

Airopack's Board of Directors and Group Management remain confident that its
medium-term goal of a run rate volume of over 700 million Airopack
dispensers annually can be achieved, compared to a total aerosol market of
15.48 billion annual units as of the end of 2015*.

Events after closing date
As part of the funding of the expansion plan, a private placement of
1,228,955 registered shares in Airopack Technology Group AG with a nominal
value of CHF 5.00 per share has been fully subscribed by investors at an
issue price of CHF 10.65 each. The closing of this private placement and
listing of the new shares in accordance with the Swiss Reporting Standard of
SIX Swiss Exchange have taken place in July 2017.

* Source: Grand View Research, Inc., U.S.A., publication date: May 2016

The 2017 half year report is available for download on the ATG website
www.airopackgroup.com under the link - investor relations - reports (
http://www.airopackgroup.com/en/investor-relations/reports)

For more information:

For investors :

Airopack Technology Group AG
Quint Kelders, CEO / Liebwin van Lil, CFO

Zugerstrasse 76b
CH-6340 Baar
T: [phone]
E-Mail: [e-mail]
E-Mail: [e-mail]

For media :

Hill + Knowlton Strategies
Frans van der Grint

T: 31 (0) 20 404 4707
E-Mail: [e-mail]

   Airopack Technology Group AG is a leading developer and supplier of
   mechanical and pressure-controlled dispensing packaging technologies
   and systems for manufacturers and suppliers of cosmetics, body care,
   home care, pharmaceutical and food products. The revolutionary and
   patented Airopack(R) technology offers a safe, all-plastic pressurized
   dispenser that is environmentally and planet friendly. Airopack
   Technology Group holds the patent and is worldwide the sole producer
   of this unique dispenser.

   Airopack Technology Group operates a production facility for Airopack
   ready-to-fill dispensers in Waalwijk, The Netherlands and a
   full-service filling operation for ready-to-sell Airopack dispensers
   in Heist-op-den-Berg, Belgium, that also develops and manufactures
   other innovative packaging solutions for personal care customers . The
   Global Research and Development Team and the Airopack Global
   Management as well as the Customer Service Organisation are also based
   in Waalwijk, The Netherlands.

   The shares of the company are listed on the Swiss Reporting Standard
   of the SIX Swiss Exchange since 2010. (Ticker: AIRN / ISIN:
   CH0242606942).
                           www.airopackgroup.com


---------------------------------------------------------------------------

Ende der Ad-hoc-Mitteilung

---------------------------------------------------------------------------

   Sprache:        Deutsch
   Unternehmen:    Airopack Technology Group AG
                   Zugerstrasse 76b
                   6340 Baar
                   Schweiz
   Telefon:        [phone]
   Fax:            [phone]
   E-Mail:         [e-mail]
   Internet:       www.airopackgroup.com
   ISIN:           CH0242606942
   Börsen:         SIX Swiss Exchange



   Ende der Mitteilung    EQS Group News-Service
---------------------------------------------------------------------------

614351 29.09.2017 CET/CEST

°