Results for the year 2006 were very positive. We had
a growth of more than eight percent in Net Sales, more
than fifteen percent in Operating Profit and 34 percent
in Net Income from continuing operations.
Consumer product sales grew 11 percent, 10 percent due
to a higher volume and one percent due to better prices
and product mix. This increase was partially offset
by lower sales of the professional line and less exports.
Operating Profit grew due to sales growth, better prices
and good operations of the production facilities, given
the higher volume with which the plants have been operating,
and the positive result of the cost containment and
reduction programs in place in all areas of the corporation.
For these reasons, our Operating Profit margin improved
almost 200 basis points to 29 percent.
Net Income from continuing operations was 34 percent
higher than the prior year and exceeded Operating Profit
growth. This was due mainly to not having been as affected
by the appreciation of the exchange rate over a long
position in financial instruments which resulted in
the integral financial cost being substantially lower
than the prior year.
The quality of the corporation's earnings is reflected
in a solid financial position and an important generation
of cash.
We generated an EBITDA of $6,750 million pesos, 13
percent above the previous year and we also improved
working capital management and administration by reducing
days in accounts receivables and increasing inventory
turnover.
All this enabled ending the year with $1,777 million
pesos in cash after having made capital expenditures
of $857 million pesos, using $715 million pesos in the
re-purchase of stock and having paid out a regular dividend
to our shareholders of $2,787 million pesos plus an
extraordinary one for $2,956 million pesos.
Under United States generally accepted accounting principles
(US GAAP), the annual results, expressed in millions
of dollars, were as follows: Net Sales of $1,800, 12
percent above the prior year; Operating Profit of $534,
14 percent above the previous year; and, Net Income
of $442, 63 percent above 2005.
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