By Eleni Botas
“Everything new”. This is provided by the insurance policy signed by Frigoglass for the fire of its factory in Romania.
As revealed by the management of the Group in yesterday’s teleconference of the analysts, within three months from the fire, it received an advance payment of 15 million euros.
“We are working to close by the end of the year the negotiation for the destruction of the property but also the negotiation for the compensation from the cessation of activities until the middle of 2022”, said Nikos Mamoulis, CEO of the group.
As he also mentioned, although the factory was 25 years old, the insurance policy has the term “all new”.
The value of the assets destroyed in Romania is 11m euros, while the new plant is expected to be ready in the last quarter of 2022, possibly earlier, with construction work to begin in early 2022.
It should be noted that the Frigoglass facility in Romania employed 774 people as permanent staff and 756 as seasonal (2020 data) out of 1,165 permanent employees and 1,145 seasonal staff employed by the group in 2019.
This is the second fire in seven years at a Frigoglass plant.
In 2014, the group’s plant in India was shut down for some time due to a fire that broke out at its facilities in April 2014.
The fire at the factory in India had caused damage mainly to the factory warehouses and to a lesser extent to the factory production area.
Cost reduction measures due to price increases
According to the management of Frigoglass, it is adjusting its prices and taking measures to reduce costs in order to compensate for the increases in its costs (due to transport and raw materials), which are estimated to remain in 2022.
In terms of prospects in the sectors in which it operates, a single-digit growth rate is expected in refrigerator sales and a double-digit growth rate in the glass industry.
As announced yesterday, Frigoglass in the third quarter of 2021 recorded an increase in its sales by 50% s, 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.
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Source From: Capital
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