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Thrace Plastics: EBITDA increased by 85% in the first quarter

Sales of € 106.3 million, despite changes in global supply and demand, announced the Plastics Thrace group for the first quarter of 2022, as well as the achievement of profits before taxes, interest and depreciation (EBITDA) of € 15.5 million, improved by 85% compared to comparable levels in 2019.

The listed company also announced:
• Earnings before Taxes (EBT) for the first quarter of 2022 amounting to € 10.7 million, of which € 6.4 come from the traditional product portfolio.

• Compared to pre-pandemic levels, ie in the first quarter of 2019, Profit before Taxes have more than doubled, showing an increase of 108.9%, demonstrating significantly increased profitability, despite the extremely negative conditions prevailing in the global market in the first quarter of 2022 and the significant increase in the cost of Raw Materials, energy and transport.

• In terms of liquidity levels and as a result of the implementation of the investment plan, the Group recorded Net Borrowing of € 12.4 million, maintaining its increased liquidity.

• Dividend proposal to the General Meeting of ~ € 0.27 per share (~ € 0.11 per share has already been distributed as an interim dividend).

Analytically, as mentioned in the relevant announcement, as already announced with the corporate announcement from May 6, 2022, the Group presented a turnover of ongoing activities amounting to € 106.3 million, while sales in the first quarter of last year amounted to € 111.4 million

Earnings before Earnings (EBT) of continuing operations amounted to € 10.7 million, of which € 6.4 million relate to the traditional product portfolio and € 4.3 million come from sales of personal protection products by COVID- 19.

In particular, the table presents the main financial figures of the Group for the first quarter of 2022, from ongoing activities, in relation to the corresponding period of 2021. Linq Inc.

Thrace Plastics: EBITDA increased by 85% in the first quarter

In terms of demand, during the first quarter of 2022 was observed:
• Stable demand for products in the construction industry.
• Stable demand for products aimed at the infrastructure and large projects sector.
• Stable demand for agricultural products with the exception of fertilizer packaging products.
• Stable demand for products aimed at the packaging sector, with fluctuations, however, per individual sector of activity.
• Significant reduction, as expected, in protection products related to pandemic treatment.
• Maintaining the cost of raw materials at high levels, while in individual cases additional increases were observed, depending on the type of raw material and the geographical area.
• Significantly increasing energy costs, much higher compared to the already increased costs of the last months of 2021, in all countries of the Group.
• Significantly increased transport costs with cases of lack of container availability.
• Significantly increased cost of b ‘materials and packaging materials.

Assessment of the impact of the pandemic on the future and prospects of the Group

Regarding the prospects of the year, the Management closely monitors the macroeconomic developments, on a global scale, which are still characterized by the significantly increasing inflationary trends, throughout the economy, but also in all the costs that constitute its cost base. industry and the ongoing war between Russia and Ukraine, which continues to significantly worsen the economic environment.

Regarding the second quarter of 2022, the Management of the Group remains optimistic for the satisfactory course, given the difficult conditions that prevail in the current period. Specifically, the Group targets Profit before Tax of € 9 million, from the traditional product portfolio, which means targeting an increase of about 140% compared to the second quarter of 2019, but reduced by 72% compared to the second quarter. 2021, as expected, due to lack of demand for pandemic-related products.

In relation to the course of 2022 as a whole, the difficult and volatile macroeconomic environment described above, high levels of inflation and the outcome of the war make it very difficult to make reliable forecasts, as visibility for financial results and the level of demand for second semester is extremely limited. The Group targets for the current year, based on its budget, Profits before Taxes over € 25 million, from the traditional product portfolio and the Group’s Management is working in this direction.

Finally, it is worth noting that the Board of Directors will propose to the forthcoming General Meeting of Shareholders dividend distribution from the profits of the year 2021 amounting to € 11.75 million, of which an interim dividend of € 4.75 million has already been distributed, therefore if the relevant proposal is approved, an additional amount of € 7 million (gross amount) will be distributed, ie 0.1600312674 Euros per share (gross amount), which will be increased by the amount corresponding to the same shares held by the Company at the date of the dividend cut.

Regarding the financial results of the quarter, Mr. Dimitris Malamos, CEO of the Group, noted: “Operating in an extremely difficult environment, with strong conditions of uncertainty, the Group adequately managed the high costs of a ‘and b’ materials, energy and achieving significant, recurring profitability for the first quarter, in line with our plans, for the second quarter and for the year as a whole, we remain committed to our goals, “At the material and energy adequacy levels, the level of demand remains at current levels and there are no other factors that will create additional difficulties in the market.”

See the full announcement of the company in the right column “Related Files”

Source: Capital

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