NR Spuntech Industries' (TASE: SPNTC) third quarter financials are evidence of the positive sentiment towards moist wipes producers. Spuntech, produces fabrics using its Spunlace hydroentanglement technique, in which high-speed jets of water entangle fibers so that they knot around one another, transforming them into a non-woven fabric.
The company's products form the raw material for the moist wipes industry, the final products being cosmetic and hygienic wipes and wipes for domestic use.
Spuntech reported improved sales and gross profit stemming from, among other things, improved efficiency and capacity usage at its US plant, which began to operate in 2006, and resulting in a substantial boost to its bottom line.
Sales in the third quarter rose 23% to NIS 106.1 million, and for the first nine months by 6.5% to NIS 277.5 million, in comparison with the corresponding periods in 2008. The gross profit margin in the third quarter was 25%of sales, 9% better than in the corresponding quarter. For the first nine months, the gross profit margin improved by 6% to 23.5%.
Globes: Has swine flu had an effect on use of wipes?
"Swine flu created a situation in which people were instructed by health authorities to take greater care over hygiene, and this resulted in higher use of wipes for disinfection purposes in the US, Europe, and Central America," says Spuntech CEO Gideon Krasny.
How do you see the company's activity in 2010?
"We're working twenty-four hours a day, seven days a week, and that will continue into next year. We will again produce more than in the previous year, and I estimate that we will sell the entire quantity we produce."
Published by Globes [online], Israel business news - www.globes-online.com - on November 12, 2009
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