Flexopack: 24.6% decrease in pre-tax profits in the nine months

Flexopack showed a decrease in profitability, despite the increase of its turnover by 6.6% in the first nine months of 2021.

In particular, the consolidated turnover amounted to 81.304 million euros, compared to 76.260 million euros, showing a percentage increase of 6.6% and the corporate turnover to 68.097 million euros, compared to 64.399 million euros, showing a percentage increase of 5.7%.

Earnings before tax, financial and investment results (EBIT) amounted to 9,005 million euros at Group level, compared to 12,932 million euros, reduced by 30.4% and at corporate level to 7,329 million euros compared to 10,952 million euros, showing a decrease. by 33.1%.

Earnings before taxes, financing, investment results and depreciation (EBITDA) amounted to Group level to 13.556 million euros, compared to 17.355 million euros, reduced by 21.9% and at corporate level to 10.687 million euros to 14.224 million euros. showing 24.9%.

Earnings before taxes (EBT) amounted to € 8.790 million, compared to € 11.658 million, down 24.6% for the company and € 6.968 million, compared to € 10.214 million, down 31.8% for the company. The total bank loan of the Group on 30/9/2021 amounted to 13,187 million euros, cash and cash equivalents to 16,298 million euros and equity amounted to 89,739 million euros.

In particular, the results were negatively affected by the following causes.

Global economic activity, hit hard by the unprecedented Covid pandemic19, has been a major disruption to the transport, supply and energy chains this year, with the following main features:

1. Continuing shortages of key raw material categories worldwide.

2. Significant and continuous increases in the prices of raw materials in the international market.

3. Significant increase in transport costs and in particular the shipping fare for container transport.

4. Significant increase in energy costs.

All 4 of the above points have a direct impact on the Group’s activity, given both its significant extroversion and its energy needs for its productive activity.

Within the above framework, the Group has set key priorities regarding the management of the above disorder and its consequent negative consequences, with an emphasis on ensuring its continuous and uninterrupted productive operation.

In particular: It takes all the necessary measures to ensure the adequacy of raw materials, in order to fully cover its productive activity.

In order to deal with the risk of rising raw material and electricity prices, it shall adjust its trade policy accordingly, so that part of that risk, as far as possible, is based on the prevailing competitive conditions. To date, increases in sales prices have not fully offset the large increases in raw material and transport costs, mainly due to the inevitable time lag, so this is evident in the Group’s results.

It is noted that in relation to the ongoing Covid 19 pandemic, the Group has from the outset adopted strict health safety protocols and procedures, in accordance with the applicable regulatory framework and the relevant guidelines and thanks to the strict observance and ensure the smooth operation of all its production units and their individual units and addresses.

Based on the data in force at the time of writing and to the extent that it can be predicted (as the data are still variable), the Management of the Group estimates that there is no substantial uncertainty as to the end of the current year of the activity, production operation, sales and supply chain of the Group as the economic activity and the financial situation of the Group have not been affected.

Nevertheless, as the spread of the Covid-19 pandemic, the disruption in the transport and supply chains as well as the energy are still in progress, without the possibility of their de-escalation being visible, the Management of the impact on the prospects of the Group and the Company, and it cannot be ruled out that the overall performance and the course of the Group and the Company will be adversely affected in the future.