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Frigoglass: 50% increase in turnover in the third quarter

Frigoglass showed a 50% increase in sales in the third quarter of 2021, as they amounted to 91.64 million euros compared to 61.05 million euros in the corresponding quarter last year. In the first nine months of 2021, sales amounted to 293.24 million euros from 269.72 million euros in the first nine months of 2020, increased by 8.7%. Earnings before interest, taxes, depreciation and amortization (EBITDA) in the third quarter of 2021 amounted to 12.53 million euros compared to 6.29 million euros in the third quarter of 2020, increased by 99.1%. Respectively in the nine months of 2021 they amounted to 41.92 million euros from 35.64 million euros in the nine months of 2020, increased by 17.6%.

In the third quarter of 2021 the net profit amounted to 7.25 million euros from losses of 7.74 million euros in the third quarter of 2020 while in the nine months the losses amounted to 3.78 million euros from losses of 7.15 million euros in the corresponding nine months last year.

Frigoglass: 50% increase in turnover in the third quarter

A relevant announcement states that the EBITDA margin improved in the third quarter by 340 basis points to 13.7%. The increase in sales volume and prices outweighed the impact of external factors, such as the increased cost of raw materials and transportation and the devaluation of the Nair. There was also an increase in production in Russia within the quarter and the start of an assembly line in Romania in early October, with the aim of reducing the impact of the fire that had hit the plant there. The reconstruction phase of the Romanian plant began in September, according to the project schedule and the estimate for its reopening in the fourth quarter of 2022

Regarding its business perspective, the company notes: “We have faced challenges from the increased costs of raw materials and transportation, as well as from restrictions in the supply chain resulting in the extension of the delivery time during the nine months. The costs remain at high levels and will continue in 2022. We have already implemented and will continue to implement price adjustments, as well as a number of measures to improve productivity and reduce costs, in order to protect our profit margins. of the Group in 2021. We expect capital expenditures of about 15 million euros in 2021. By the end of September we have spent about 0.5 million euros, mainly related to new mechanical equipment for the operation of the temporary assembly line in Romania. sufficient liquidity, with 77.9 million euros in cash and 11 million “euros in available credit lines at the end of September, to meet short-term needs for financing costs and capital expenditures, as well as for working capital financing”.

THE Nikos Mamoulis, CEO of Frigoglass, commented: “We have achieved strong performance despite the challenges associated with rising costs and the impact of the fire in Romania. With market trends remaining favorable in October, we expect 2021 to reach double digits. We are focusing on the implementation of the business continuity plan to meet demand during the seasonally strong first half of next year, the timely start of construction work in Romania, as well as measures to offset rising costs. “.

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Source From: Capital

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