Airspray: Accelerated Sales Growth First Half 2005.ALKMAAR Alkmaar (älk`mär), city (1994 pop. 92,962), North Holland prov., NW Netherlands. It is an important market town with varied industries. , Netherlands Netherlands (nĕth`ərləndz), Du. Nederland or Koninkrijk der Nederlanden, officially Kingdom of the Netherlands, constitutional monarchy (2005 est. pop. 16,407,000), 15,963 sq mi (41,344 sq km), NW Europe. -- --Sales up 25% to EUR EUR In currencies, this is the abbreviation for the Euro. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 21.1 million (H1 2004: EUR 16.9 million) --Net result (IFRS IFRS International Financial Reporting Standard(s) IFRS Inter Frame Relay Service IFRS Indiana Facilities Registry System ) EUR 2.6 million. (H1 2004: EUR 2.6 million) --First market entry into dish detergent detergent (dētûr`jənt, dĭ–), substance that aids in the removal of dirt. Detergents act mainly on the oily films that trap dirt particles. (household) segment --Plant expansion in The Netherlands --U.S. molding initiative --Management raises its expectation to at least 20% sales and profit growth for the full year 2005 Results Airspray realized particular strong growth during the first half of 2005. Total volume increased 41% resulting in sales revenue growing 25% to EUR 21.1 million. Gross margin declined from 37% during full year 2004 to 35% in the first half of 2005 (40% 1H '04) due to raw material cost increases, exchange rates differences, volume discounts and in particular product mix effects. As expected, volume was equally buoyant Buoyant The term used to describe a commodities market where the prices generally rise with ease when there are considerable signals of strength. Notes: These types of markets can be very volatile as the prices are rapid to rise and fall with investor sentiment. in both continents, in particular in existing segments like hand soap and reflecting the new entry into the household segment. By geography, in euros, North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. realized 58% of the turnover, Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). 37% and other 5% (2004: NA 61%,
Europe 34%, other 5%). Operational expenses increased 11%, which was
lower than the sales growth. Financing costs, mainly due to the cost of
currency instruments Airspray is using, increased significantly.As a result of the above net result was EUR 2.6 million, at the same level as the first half 2004. Earnings per share were stable at EUR 0.49 compared to 2004. During the first six months Airspray invested EUR 1,6 million primarily in new molds and assembly equipment. Airspray's balance sheet remains very strong with a solvability solv·a·ble adj. Possible to solve: solvable problems; a solvable riddle. solv of 76% (compared to IFRS end of 2004 at 77%). This is the first time Airspray is reporting according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. IFRS regulations. A separate exhibit titled:" IFRS Based reporting for 2004 Airspray N.V." shows the relevant changes and adjustments from Dutch GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). to IFRS for the financial statements from 1/1/04, 31/12/04 and 1/1/05. Operational review of first half 2005 Airspray had a strong first half capitalizing on growth in both continents and segment growth in particular in hand soap and new segment growth. Procter
Regarding new products, Airspray continued its marketing and sales efforts of the new Dual Foamer and Symplicity lotion lotion /lo·tion/ (lo´shun) a liquid suspension, solution, or emulsion for external application to the body. lo·tion n. 1. pump. Earlier this year a unique custom pump was launched in support of the dish detergent segment and later this month first shipments of the WRT WRT - with regard to, with respect to. 6 (Water resistant Table top) are expected. Turnover per segment The skin care segment in the total mix of Airspray's turnover still accounted for 30% (2004: 36%) in the first half of the year. The share of hand soap grew to 32% (2004: 30%) of turnover. Hair care's share slightly declined as a percentage of the sales mix sales mix See product mix. to 16% (2004: 20%) and Sun care's share to 7%.(2004: 9%) The newly established Household Segment being Dish detergent in particular accounted for 11%. Remaining other was 4% (2004: 5%). In Euros all segments grew except sun care. The two fastest growing segments are hand soap and dish detergent. Hand soap can already be split in 2/3 Adult and 1/3 Kids hand soap. Most notable is that according to IRI Iri (ē`rē`), former city, North Jeolla (Cholla) prov., SW South Korea. An agricultural center and transportation hub, it was absorbed into Iksan. (Information Resources (1) The data and information assets of an organization, department or unit. See data administration. (2) Another name for the Information Systems (IS) or Information Technology (IT) department. See IT. , Inc.) in the U.S. weekly sales at retail of instant foaming foam n. 1. a. A mass of bubbles of air or gas in a matrix of liquid film, especially an accumulation of fine, frothy bubbles formed in or on the surface of a liquid, as from agitation or fermentation. b. hand soap has doubled in the last 18 months. U.S. Dollar For the first half of 2005, Airspray experienced a negative exchange rate effect on the results compared to last year. As a result of the variety of currency instruments that were bought for the second half, Airspray is by and large covered with dollar instruments for the remainder of the year. In addition, as a matter of policy as outlined in the annual report, to minimize the effects of a fluctuating fluc·tu·ate v. fluc·tu·at·ed, fluc·tu·at·ing, fluc·tu·ates v.intr. 1. To vary irregularly. See Synonyms at swing. 2. To rise and fall in or as if in waves; undulate. v. dollar in the future, Airspray is buying dollar options each month, 12 months out. U.S. Molding initiative Airspray announced today that in an effort to substantially increase the natural hedge to minimize the effect of dollar fluctuations, Airspray will start it's it's 1. Contraction of it is. 2. Contraction of it has. See Usage Note at its. it's it is or it has it's be ~have own captive captive said of naturally wild or feral animals kept in captivity for educational and scientific investigation with no attempt being made to domesticate them. U.S. molding operation. The plan is to start this operation during the first quarter of 2006 and it is the intent to mold mold, name for certain multicellular organisms of the various classes of the kingdom Fungi, characteristically having bodies composed of a cottony mycelium. The colors of molds are caused by the spores, which are borne on the mycelium. high volume outer parts that are currently imported from European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. suppliers. Airspray made the decision to start molding since there are no qualified U.S. molders that could match the competitive European part prices and quality. However, Airspray is able to meet these cost targets, furthermore it will have a positive effect on working capital and will limit the cost of hedging. Outlook Based on the strong mid-year order book and year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. performance, and taking into account factors like the dollar exchange rate, Airspray raises its expectation to at least 20% sales and profit growth for the full year 2005. Airspray profile Airspray is an important producer of high value-added val·ue-add·ed adj. Of or relating to the estimated value that is added to a product or material at each stage of its manufacture or distribution: , innovative dispensers. Airspray is market leader in mechanical instant foam dispensers. Airspray sells its products to producers of consumer products who include multinationals like Procter & Gamble, Unilever Unilever Either of two linked companies, Unilever PLC (based in London) and Unilever NV (based in Rotterdam). They are the holding companies for more than 500 firms worldwide that manufacture and sell soaps, foods, and other products. , Colgate, L'Oreal, Henkel-Schwarzkopf and Johnson & Johnson. Currently Airspray employs over 130 people. Airspray is a 'technology-driven' enterprise. During its 20+ year existence, Airspray has developed expertise in R&D, in bringing innovative dispensing dispensing provision of drugs or medicines as set out properly on a lawful prescription. A prescription can only be filled, the drugs supplied, by a registered pharmacist, veterinarian, dentist or member of the medical profession. solutions to mass production and in their worldwide marketing. Airspray now has four dispenser types that all operate without gas propellants. Airspray has been listed on the Euronext Amsterdam since 28 May 1998. In the U.S., the company is traded over-the-counter ("AYAKY").
CONSOLIDATED PROFIT AND LOSS ACCOUNT at June 30
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In EUR. x 1,000
2005 2004 growth%
Net sales 21.073 16.879 25%
Cost of sales - 13.801 - 10.133 36%
-------- --------
Gross margin 7.272 6.746 8%
Selling expenses - 336 - 323
G & A expenses - 2.716 - 2.430
------- -------
- 3.052 - 2.753 11%
-------- --------
Operational result 4.220 3.993 6%
Financial income/
expenses - 332 2
-------- --------
Result before tax 3.888 3.995 -3%
Tax - 1.283 - 1.383 -7%
-------- --------
Net profit 2.605 2.612 -
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RATIOS
------
In EUR.
Earnings per share (ave.) 0.49 0.49
Cash flow per share (ave.) 0.69 0.66
Equity per share (30-6-05) 5.38 5.26 (1-1-05)
In %
Return on equity 19% 19%
Gross margin 35% 40%
Operational margin 20% 24%
Number of shares (average) 5.298.073 5.287.842
Number of shares (end) 5.324.206 5.287.842
CONSOLIDATED BALANCE SHEET
--------------------------
In EUR. x 1,000
ASSETS 30-06-2005 1-1-2005
FIXED ASSETS
Intangible fixed assets 2.891 2.565
Tangible fixed assets 18.439 17.512
Financial fixed assets 1.586 2.046
-------- --------
22.916 22.123
CURRENT ASSETS
Inventories 4.595 4.052
Receivables
Debtors 8.239 7.353
Taxes and social sec.contr. 593 605
Other receivables 1.194 662
-------- --------
10.026 8.620
Cash 265 1.449
------- -------
Total assets 37.802 36.244
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LIABILITIES 30-06-2005 1-1-2005
Shareholders' equity 28.646 27.836
Provisions 597 597
Long-term debts 2.249 2.308
Current liabilities
Trade creditors 3.688 3.488
Taxes and social sec.contr. 1.252 369
Other liabilities 1.370 1.646
-------- --------
6.310 5.503
------- -------
Total liabilities 37.802 36.244
======= =======
CONSOLIDATED CASH FLOW STATEMENT
--------------------------------
First half year in EUR x 1,000
Cash flow from operational activities
2005 2004
Operational result 4.220 3.993
Depreciation/amortisation 1.043 918
------- -------
5.263 4.911
Movements in working capital
----------------------------
Trade accounts receivable -886 976
Inventories -543 -960
Trade creditors 200 99
Other receivables and debts 87 -514
------- -------
-1.142 -399
Other movements
---------------
Financial income/expenses -332 2
Tax -1.283 -1.383
------- -------
-1.615 -1.381
Cash flow from business operations 2.506 3.131
Cash flow from investment activities
Investment in intangible assets -472 -365
Investment in tangible assets -1.590 -1.362
Investment in financial assets 460 424
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Cash flow from investment activities -1.602 -1.303
Cash flow from financing activities
Addition to shareholders' equity 71 45
Proceeds from issuance of shares 598 -
Dividend paid -3.339 -3.331
Movement in long-term debts -59 -39
Movement in provision - 37
------- -------
Cash flow from financing activities -2.729 -3.288
Net cash flow -1.825 -1.460
Exchange rate and conversion difference 641 112
------- -------
Change in cash items -1.184 -1.348
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