- 71 -
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
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