Domzale, 29 March (STA) - The net profit at coatings group Helios fell 12% to EUR 2.5m in 2010, despite a 13% increase in sales revenues, according to an unaudited earnings report published by the company on Tuesday.
Helios said in a press release that the fall in profit compared to 2009 was a result of profits made a year earlier on account of selling non-essential assets.
However, the unstable business conditions, including quick growth in raw material prices, and subsequent lower sales on main markets have also contributed to a drop in profit.
Dearer raw materials meant that the share of costs for materials as a share of sales revenues rose from 49% in 2009 to 57% last year.
The group added that it made an operating profit of EUR 6.6m last year, a drop of 37% year-on-year.
For this year the group plans to increase its market share on its main markets and will only expand to new markets with products with higher added value.
It added that it would continue selling non-essential assets and restructuring the group at organisational and product level. As part of this, focus in production will be paid to reducing the line of products and focusing on environment-friendly coatings.
Helios projects to generate EUR 326m in net sales revenues and make a net profit of EUR 6.5m this year.