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Earnings Release
IVL Doubles Revenue to over $ 6 billion while profits grew 55%
Feb 22, 2012
Bangkok, Thailand – 22 February 2012 – 2011, although a year full of challenges Indorama Ventures Public Company Limited (IVL) sustained high performance with the addition of key specialty products to its existing product portfolio, which serve the evergreen consumer markets, along with its continued expansion into recycling and further integration within the polyester value chain.
IVL, the world’s leading vertically integrated Polyester Value Chain producer, has announced that its consolidated sales revenue reached US$ 6,102 million in 2011, approximately double the consolidated sales of US$ 3,055 million achieved in 2010. The Company announced a net profit that rose to US$ 510 million, or 55% above the US$ 328 million achieved in 2010. Moreover, after excluding extraordinary items, IVL achieved a net profit of US$ 297 million, or 38% higher than the US$ 215 million achieved in 2010 (after excluding an extraordinary gain of US$ 113 million). IVL was therefore able to achieve earnings per share of Baht 3.29 in 2011 compared to an EPS of Baht 2.46 in 2010. The Board has recommended a final dividend of Baht 0.50 per share making total dividend for year 2011 at Baht 1.00 per share or around 30% payout as per IVL’s policy.
IVL achieved an impressive annual volume growth of 37% over 2010 despite the natural disasters that occurred in Thailand and Alabama, USA. In 2011, reported Consolidated EBITDA was US$ 558 million, reflecting growth of 28% over the previous year, while Core EBITDA was US$ 552 million, or growth of 38%. The end consumer demand growth for PET and Polyester was in line with forecast at 7% globally however industrial sentiments in Q4 2011 turned bearish leading to de-stocking and a reduction in inventory similar to sentiments observed in Q4 2008 at the height of the financial crisis. In 2012, the company has observed the gradual recovery and IVL has seen improved operating rates, especially in Europe.
Q4 2011 was significantly impacted by both short term de-stocking of inventories globally due to falling commodities prices, which resulted in lower production volumes, and the loss of production of plants in Thailand due to the floods. An impairment charge for assets impacted by the floods and the stock loss led to Net loss of $51 million and a Core Net Profit of $ 15 million after adjusting for extraordinary items.
IVL remains financially stronger with Net Debt/Equity of 0.7 times and liquidity of USD 1.4 Billion, which includes cash and cash equivalents and unutilized credit lines. IVL raised equity (through a TSR issue) of THB 17.2 Billion to fund its growth plans and experienced high demand during its maiden debenture issue of THB 7.5 Billion. IVL’s value-accretive and strategic acquisitions have brought innovation, high margin products, access to new markets, new consumer and industrial brands, and a highly diverse and experienced talent pool that will benefit its existing businesses as well. Polyester continues its steady growth due to its affordability, recyclability, and versatility as a packaging and textile material. After a slow Q4’11, all of its business segments are seeing resilient consumer demand in all markets, leading to high manufacturing utilization rates and lower operating cost due to scale. IVL expects to benefit from a favorable geographical mix in key regions where it has attained market leadership and consolidation. IVL’s investments in innovation and value-added product lines are already contributing to earnings and are expected to gain further traction going forward.
The FiberVisions acquisition not only adds specialty mono/bi- component fibers in high value consumer applications, but also makes IVL the largest producer of polypropylene fiber. The Old World acquisition provides IVL entry into the Ethylene Oxide and Mono-ethylene Glycol segment that enhances backward integration and improves its margins. The Wellman International acquisition made IVL the largest recycler in Europe and the implementation of recycling projects in US and Thailand will further our commitment to serve our customers better.
About Indorama Ventures 
Indorama Ventures Public Company Limited, listed in Thailand (Bloomberg ticker IVL.TB) is the world’s leading producer in the polyester value chain, with a global footprint and manufacturing across Asia, Europe and North America. Its products serve major players in consumer staples. The company’s main products are PTA, PET and Polyester fiber, which are distributed across the world. IVL has 9,000 employees worldwide and 2011 consolidated revenue of US$ 6.1 billion.