Production and trade
At the end of 2018, the second production line was put into trial operation, which doubled the possibility of production potential. The goal for 2019 was to put production into standard operation. Therefore, it was necessary to ensure the operation of the new production line, both from the technical and technological point of view, as well as from the point of view of obtaining and training operating and management personnel. During the first quarter of the year, the output of production succeeded in satisfying the Company's business needs and reduced the production cycle from continuous operation (1 production line) to three-shift (2 production lines). t of products, which is 33% more than in 2018. This result is considered a great success by the management of MORACELL. In addition, due to the acquisition of new customers and other product positions in some existing ones, the number of stock items increased. As the number of products increased, the number of technological reconstructions of production lines according to the production program also increased significantly, which relatively reduced production efficiency.
The management of MORACELL has set the following values of target indicators for 2020:
• Produce 19 thousand. tons of own products ↑ 30%
• Realization of turnover in the amount of CZK 840 million ↑ 23%
• Achieving EBITDA of CZK 80 million ↑ 35%
In 2019, the Company recorded dynamic sales growth and their total year-on-year increase was 25%. During this accounting period, revenues from own products and services amounted to over CZK 541 million and revenues from the sale of goods reached the value of CZK 142 million, whereby MORACELL reported a record turnover in history, exceeding CZK 680 million.
In addition, we still manage to maintain a high share of our own brands Big Soft and Fine & Soft (more than 50%), where the Company generally achieves higher added value and thus contributes to higher values of profitability indicators. The Company recorded sales progress in all distribution channels. In independent networks, turnover increased by 8%, in retail chains by 31% and in the area of exports even by more than 40%. Stabilization of the sales team, personal approach, long-term high level of quality of products and goods, reliability, quick response to customer requirements and other competitive advantages have become strengths of MORACELL's business activity.
Thanks to this, in 2019 we were successful in all business segments, we concluded several new contracts in an independent network, the acquisition of another multinational retail chain and the inclusion of new products with existing customers. In the field of exports, in addition to the already traditional markets, such as Slovakia, Belarus, Estonia or Austria, we have significantly strengthened our position in the Netherlands, Germany, Poland and gained other countries, such as France, through our trading partners. In 2020, we would like to build on our business success and set further development goals.
Moracell manufacturing program
- Currently, MORACELL s.r.o. is the top producer of paper hygiene in the Czech Republic.
- Portfolio of our products is very wide and includes practically full assortment of paper hygiene, toilet papers, kitchen towels, paper napkins, paper handkerchiefs, facial tissue etc.
- Major part of our production is focused on toilet papers and kitchen towels for our business partners.
- Paper hygiene products, produced by us, are made of a high-quality 100% cellulose.
- In January of this year, we have launched already second, state-of-art hi-tech line for the production of toilet papers and Kitchen towels
- Production capacity of MORACELL is around 20 thousand pallets/month.
- We have a storage capacity of ca 20 thousand pallets. We have also a separate warehouse for jumbo discs.
- We’re holders of number of certifications, as e.g. – BRC, PEFC, FSC, ISO, etc.¨)
- Majority of our production, ca 75 – 80%, is executed in the Czech Republic.
- We are a company focused on exports of our products. Currently, we export our goods into around 10 countries of Europe.