Runner: Decline in sizes in the nine months of 2021

The financial figures of Dromea recorded a decline in the first nine months of the year, both at Group and company level.

More specifically, the Group’s turnover amounted to 14,853 thousand euros, compared to 16,116 thousand euros in the corresponding period of 2020, showing a percentage decrease of 7.84% and the corporate one to 14,687 thousand euros, compared to 15,973 thousand euros, presenting respectively percentage reduction 8.05%.

Earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to 3,070 thousand euros at Group level, compared to 2,894 thousand euros, increased by 6.08% and at corporate level to 2,992 thousand euros compared to 2,801 thousand euros, showing a decrease by 6.82%.

Earnings before interest and taxes (EBIT) amounted to 2,080 thousand euros at Group level, compared to 1,896 thousand euros, increased by 9.70% and at corporate level to 2,117 thousand euros compared to 1,903 thousand euros, showing an increase of 11, 25%.

Earnings before taxes (EBT) amounted to 1,254 thousand euros for the Group, compared to 1,323 thousand euros reduced by 5.50% and for the Company to 1,306 thousand euros to 1,343 thousand euros reduced by 2.76%.

The total bank lending of the Group on 30/9/2021 amounted to 26,329x Euros, cash and cash equivalents to 1,636 thousand euros and equity amounted to 28,316 thousand euros. Respectively, the company’s bank loans amounted to 26,053 thousand euros, cash and cash equivalents to 1,448 thousand euros and equity amounted to 29,120 thousand euros.

Impact of the pandemic and the energy crisis

In order to deal with the possible risk of stopping production due to the occurrence of cases due to the pandemic, the company from the beginning faithfully follows the instructions given by the authorities. In this context, the protocols of ensuring the Health of the Personnel and the other involved Customers and Suppliers are strictly observed in accordance with the guidelines and recommendations of the World Health Organization, the National Agency for Public Health and the General Secretariat for Policy.

In this way until today the company has managed to operate smoothly throughout the leaked period since the start of the pandemic and we hope that by continuing to follow the measures indicated strictly and consistently we will not face a problem in the company’s production unit.

Referring now to problems that may arise from the suppliers or customers of the company we have to mention the following:

A) The company supplies AD and auxiliary materials for the implementation of its production from a variety of reliable suppliers who usually do not come from a single country. This dispersion of suppliers in different countries and companies gives us the opportunity to hope that even if one or more of our suppliers are concerned about the pandemic, either individually or as a country of origin, our company will be able to replace them. so as to ensure the smooth flow of the materials necessary for the production of AD and BD. The prolongation of the deliveries of raw materials increased the stocks relatively.

B) The company exports a significant part of its products to Central Europe which is also currently under strong pressure due to the pandemic. Its sales relate mainly to large projects undertaken under contracts and less to small retail sales that could be significantly adversely affected. The execution of the contracts is still implemented, but in some cases there is a slight delay in the receipts of the products, but it is occasional and is usually balanced by larger receipts in later periods. As evidenced by the turnover of the first half of the year but also of the 9th month of the year, the company manages to maintain a satisfactory rate of deliveries-sales despite the problems of delays that appeared in the leaked period and we have every reason to believe that this will continue in the near future. In terms of domestic sales, they have recorded a stabilizing course in the year both through the company’s sales network and through the continuous strengthening of sales through the e-shop. In the whole year, they are expected to exceed those of the year 2020 due to the undertaking-implementation of an important project of OTE. This is partly due to the overall upward trend of investments in the country’s economy but also to the fact that the company has high recognition due to its quality products and prices that meet the “value for money” principle.

To the problem of the pandemic was added the problem of the energy crisis in combination with the crisis of significant appreciation of materials worldwide. The company as well as all companies are exposed to the risks they have taken and the actions it can take to address them are limited. However, in order to maintain its level of efficiency, it moved on the following three axes:

A) Within 2021, it revised its price list three times, most recently in October 2021, trying to balance the increase in costs imposed on it by increasing the cost of energy and materials by absorbing some and passing the rest on to consumers. The average increase in the price list, which was divided according to the materials and the energy costs required for the production of each product, amounted to approximately 20%.

B) As we have mentioned above, a large part of the company’s sales comes from the undertaking of contracts for large projects, mainly abroad. The projects add up to an amount of about 80 million euros and are divided into those that were undertaken before 2021 and later.

1. For the projects that had been undertaken before 2021 and during the submission of the bids the explosive increase of the cost of energy and materials could not have been foreseen, the company renegotiated the pricing, which was accepted with the result that it remained essentially stable. the level of efficiency in specific sales. We note that the increase was given to all the projects of the specific period with a total outstanding value of approximately 50 million euros, increasing it by approximately 7 million euros.

2. The projects undertaken in 2021, which mainly concern the work of the European Commission amounting to approximately 25 million euros and a project of the German Army of approximately 5 million euros, have included in the bids submitted the forecast of the expected increases in energy and material prices. In addition, the contract signed for the work of the European Commission contains a provision for price revision depending on the circumstances.

The company is pleased to base most of its sales on contracts with major Overseas Organizations. So far, as evidenced historically by the announced results of 6 months and 9 months described above despite the problem of the pandemic, and the problem of rising energy costs and material costs, its course is relatively stable with a positive outlook. The course of the company’s sales and results is expected to continue at least until the end of this year. Care is taken and there is strong optimism, always according to the data in force at the time of writing and to the extent that it is possible to predict that despite the expected intensity of the problem that will burden a significant part of the new year the company will continue to rise. of course.

The strong uncertainty created by the crisis due to the pandemic in combination with the energy crisis and the upward trend in raw material prices does not, of course, allow us to rule out the possibility that the company’s performance will be adversely affected in the future.