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- 71 -

Directors’ report

The sales volume was very close to forecasts and up sharply from 2015, enabling a high utilisation of

production capacity, albeit below forecasts owing to a challenging competitive environment.

Margins remained at a similar level amid lower raw material costs.

Contamination of a maritime cargo of purified acid bound for the United States forced Prayon to issue

a product recall to its customers. The product had not yet entered the food chain, but destroying the

semi-finished products entailed a substantial cost approaching €5.5 million.

The aforementioned market conditions together with improved industrial performance meant that the

2016 financial year closed with a profit of €0.6 million, a cash flow of €23.1 million and a REBITDA of

€38.1 million.

In this context, net debt decreased sharply thanks to a significant fall in the company's working capital

requirement, since the freed-up cash flow offset investment costs for the year. The graph below shows

the change in net financial debt.

Fluctuations in the price of phosphoric acid 54% P




(CFR) in NW Europe