Positive results for the nine months of 2021 were announced on Monday by Plastics Thrace. In particular, the Group’s Turnover from continuing operations amounted to € 341.6 million, increased by 34.6%, compared to the corresponding period of 2020, while Earnings before Taxes, Interest and Depreciation (EBITDA) from continuing operations amounted to € 96.7 million, increased by 84.5%, compared to the nine months of the previous year. Also, Earnings before Taxes (EBT) from ongoing activities amounted to € 81 million, increased by 110.8% compared to the corresponding period of 2020. It is noted that according to Management estimates, for the nine months of 2021, Earnings before Taxes at Group level, related to the products of the existing portfolio used in personal protection and health applications, amount to € 50.7 million.
In terms of liquidity levels, the Group managed to further strengthen its liquidity, recording a negative Net Cash of € 22.7 million, as cash and cash equivalents exceeded its loan liabilities. The total Equity on 30.09.2021 amounted to € 247.9 million, compared to € 174.6 million on 31.12.2020.
From a financial point of view, the Group managed to increase its revenues and profitability, successfully offsetting any negative effects and fluctuations in demand.
More specifically, during the third quarter of the year it was observed:
Increased demand for products in the construction industry.
Maintaining demand in the infrastructure and agricultural sectors.
Maintaining demand for packaging products.
– Significant reduction in demand for products related to personal protection and health.
– Maintaining the increased prices of raw materials, while in individual cases additional increases were observed, depending on the
type of raw material and geographical area.
– Significantly increased energy costs, in all countries of the Group.
– Significantly increased transport costs with significant shortages in both available ground transport and
containers.
– Significantly increased cost of b ‘materials and packaging materials
In particular, the table presents the main financial figures of the Group for the nine months of 2021, in relation to the corresponding period of 2020.
It is pointed out that the Adjusted EBITDA does not include gains from the sale of fixed assets worth € 760 thousand and impairment losses of fixed assets worth € 742 thousand, which relate to the operational reorganization of Don & Low LTD. Also, expenses provisions worth € 400 thousand related to staff remuneration and compensation are not included.
Regarding the investments, the implementation of the planned investment plan of the Group is proceeding smoothly, but also of the additional extraordinary investment plan of € 25.5 million, of which € 21.4 million relate to the investments made in the Group’s facilities in Xanthi and € 4.1 million in investments in the Group’s facilities in Scotland.
It is noted that the Board of Directors of the Company decided to distribute a temporary dividend for the corporate year 2021, with the total amount amounting to € 4,750 thousand (gross amount), which will take place on December 8, 2021.
Assessment of the impact of the pandemic on the future and prospects of the Group
Regarding the prospects for the current year, the Management estimates that the financial figures of the Group will continue to show a satisfactory course in the fourth quarter of the year 2021, although a slowdown in profitability is expected, compared to the previous quarters of the year. The further decline in the demand for personal protection and health products, combined with the maintenance of increased prices of raw materials and energy, energy costs and transport costs, are expected to affect the last months of the year and create conditions of uncertainty and for the next year, the relevant announcement of the company states and continues: In this macroeconomic environment, the Group acts in order to maintain the profitability that comes from the traditional sales mix, having previously carried out a series of actions and continues to implement actions towards this direction. At the same time, the Group’s priority is the development of new products and access to new markets, while important actions are implemented regarding the recycling and the circular economy, actions that are an integral part of the Group’s strategy and will form new dynamics for the future.
At the same time, the Management of the Group works unceasingly for the implementation of the new strategy, as well as the implementation of the annual investment plan, but also of the extraordinary investment actions that have been decided. The Management of the Group is convinced that the implementation of the investment plans as a whole creates conditions for the Group to gradually enter a new era of development, improvement of infrastructure, further expansion of activities and improvement of profit margins, compared to pre-pandemic levels. At the same time, the strengthening of the Group’s financial position is the basis for the development of new investment plans, as they will be formed in the coming years, actions that in turn will contribute to the successful implementation of the new strategy, always within the framework of profitable sustainable development
Given that the current conditions in the global market create conditions of uncertainty, making any assessment regarding the impact of the pandemic on the commercial activity and the financial results of the Company and the Group uncertain, however the Group Management, based on the above, estimates that neither the Group nor any of its sub-activities face a possible or threatened case of going concern. At the same time, the Management remains optimistic about the very satisfactory picture of the Group’s financial results for the whole year, although it maintains reservations about the financial consequences that the pandemic will cause in the economies of the countries in the next period, but also for next year and for the development and further increase in the significant operating costs of the Group.
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Source From: Capital
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