Frigoglass - comment

Q1 results today show an ICM division with EBITDA “stabilising” just above zero and a Glass division making up for half the drop. More importantly, however, the company has engaged advisors to “review financial and strategic options to improve the capital structure”. Whatever that means… Cash seems to be running low outside of Nigeria. Frigoglass has thus far received €25m of the €42m of insurance reimbursements as well as €2.8m of the remaining €17m for construction and equipment purchases. The company also received a €5.5m advance payment towards its business interruption case which only settles later this quarter. The higher than anticipated insurance inflows have helped offset what must have been an even larger than anticipated inventory build - presumably required to overcome the apparent supply chain hurdles between its Russian plant and Central and Western European markets.