OREANDA-NEWS. Leader in the manufacture and sale of nonwovens in Brazil with a significant presence in the Americas and operating globally, Companhia Providencia (BM&FBovespa:PRV13) announces net revenues of BRL 211.7 million in the first quarter 2014, a 31.8% improvement on the same period in 2013.

Revenue growth is due to the increase in utilization of available production capacity and higher sales volume, the latter reporting a year-on-year rise of 9.1% to 29.4 thousand tons. If nonwovens are isolated from remaining production, the output would have increased by 13.6% in relation to the first quarter 2013.

The Company posted an adjusted EBITDA of BRL 28.8 million, 11.8% higher than the first quarter of 2013. The adjusted EBITDA margin for the first quarter totaled 13.6%, 2.4 percentage points lower than the same quarter in 2013, largely reflecting the prices of polypropylene, Providencia's principal raw material, and also the recent strength in the dollar against the local currency.

Net debt increased by 11.2%, again on a year-on-year comparative basis, the principal factors being a reduction of BRL 71.6 million in cash and liquidity hedge instruments.

The net financial result was a negative BRL 11.9 million. The growth is directly related to the impact of currency variation in assets and liabilities.

During the first quarter, the Company pursued its strategy of investment in the modernization and maintenance of the industrial complex in the USA and in Brazil. Total investment in Capex was BRL 8.4 million during the quarter.