Press Release

25 February 2010, 14:24


The ERGIS Group achieved excellent financial results in 2009 despite a general weakening in economic growth. The Group's gross result on sale increased up to PLN 99.8 million, i.e. it was by 18.6% higher than in the previous year. The operating profit increased by 76% to PLN 32.15 million and the net profit amounted to PLN 17.93 million (a loss of PLN 10 million the year before). The sales revenue of the ERGIS Group in 2009 amounted to PLN 549.62 million.

Key events:

  • ­Only in the fourth quarter 2009, the revenue on sales increased by almost 9% to PLN 129.9 million, which demonstrated the Group’s strong market position.
  • ­ In the fourth quarter, the Group’s profit on sale was lower than usual (along with operating profit and EBITDA), as – given reduced demand – the Group gave priority to maintaining the sales level before the profit.
  • ­ The gross profit on sales after in 2009 amounted to PLN 99.8 million, in comparison to PLN 84.1 million in the same period of 2008. The margin increased from 12.7% in 2008 to the current 18.2%.
  • ­In the whole 2009, the Group generated PLN 32.15 million of the operating profit, in comparison to PLN 18.23 million in the previous year, which means an increase by 76%. The operating profit margin ratio increased from 3.3% to 5.8%.
  • ­ In November 2009, the Company issued series A bonds convertible to series H shares, with the value of PLN 30 million. The issue was taken up in full, and the proceeds from the issue served for the repayment of the first tranche of a loan incurred for the acquisition of the German companies, MKF-Folien GmbH and Schimanski GmbH.
  • ­ In 2009, the net operating cash flow amounted to PLN 57,941 thousand. The obtained financial surplus ensures financial stability of the Group and is a proof of its good payment situation.


Financial results of the ERGIS Group in 2009 are presented in the table below:

PLN '000








Gross profit on sales




Profit on operating activities








Net profit




Despite an economic slowdown on the markets which are also the areas of operation for the Group, the revenue in 2009 slightly increased (by 0.64%) as compared to 2008. Good results achieved in the fourth quarter of 2009 largely contributed to the increase – the Q4 sales were higher by 8.91% than in the same period of 2008.

As compared to 2009, the Group recorded a decrease in terms of value in the sales of stretch films, PVC hard films, PS/PP films and granulates and PVC extruded products. In the case of stretch films, the sales volume grew slightly, and the decrease in sales revenue in terms of value was caused by lower prices of raw materials and hence lower transaction unit prices.

Further, the Company recorded a high dynamics of sales of greenstrap and other packaging films, as well as some other products, including PET films, wallpaper, printed packaging and PVC soft films.

Cumulatively in the period of 12 months of 2009 the net profit amounted to PLN 17.9 million, as compared to PLN 10 million in 2008. An improvement in the net result is brought about by an increase in operating profitability, as well as in decreasing negative exchange rate differences constituting financial costs, which arise as a result of the current valuation of the EUR denominated loans.

Profit on sales in the four quarters of 2009 amounted to PLN 99.8 million, and operating profit amounted to PLN 32.2 million as compared to PLN 84.1 million and PLN 18.3 million in 2008, respectively. Better margin and operating profit resulted in the improved operating profitability ratios. In 2009 the margin ratio was 18.2%, whereas in the analogous period of 2008 it amounted to 12.7%. The operating profit ratio improved from 3.3% to 5.8%. The improved margin is largely attributable to the exchange ratio of the Polish zloty which in 2009 was lower than the whole 2008, which allowed better export margins to be achieved.

Gross sales margin only in the fourth quarter of 2009 again stood at a high level and amounted to PLN 15.6 million (PLN 15.2 million a year before).


In November 2009, the Ergis Group successfully carried out a private issue of convertible series A bonds. In aggregate the investors took up 30,000 bonds with a total value of PLN 30 million. As a result, the Group repaid the first tranche of a loan incurred for the acquisition of the German companies: MKF-Folien GmbH and Schimanski GmbH.


The Group’s financial standing is very good. EBITDA level, being one of the main factors determining the Group’s financial security, increased to PLN 55.26 million at the end of 2009, in comparison to PLN 40.55 million a year before.

In 2010, the Group shall continue to concentrate on the development of three main fields of its activity – production of laminates for food, industrial packaging (stretch films PE and PET films) and products from plastics for a construction industry (PVC). An expansion on the market of PET films shall be continued, where the Group appeared for the first time in 2007 and where it systematically has increased its share.

In January 2010, the ERGIS Group also created a company in the Czech Republic, through which it intends to develop sales of packaging materials (stretch films and greenstrap).

“The last year brought a considerable improvement of the financial results and profitability of the Ergis Group. Higher sales achieved in the circumstances of economic slowdown in Poland and recession on many European markets are of particular importance for us – this allowed the Company to increase its market share and reinforce its already strong position on the European market of plastics processing,” - comments Tadeusz Nowicki, President of the Management Board of ERGIS-EUROFILMS S.A.

“In November 2009, we successfully carried out an issue of convertible bonds, which enabled us to repay a portion of our liabilities related to the acquisition of the German companies concluded in 2007. We then started the year 2010 with a stronger market position and a very stable financial situation. In 2010 we will focus on maintaining profitability achieved in 2009 and further development of basic areas of our operations. We also established a company in the Czech Republic, through which we intend to develop the sales of packaging materials (stretch films and greenstrap). We also expand our manufacturing capacity - at the turn of 2010 and 2011 we intend to invest PLN 24 million (40% of that amount will be financed with funds from the Innovative Economy Operational Programme) to boost stretch film manufacturing in our Oława Plant. Already in the first year the new line will significantly improve our manufacturing capacity from the current 27,000 tonnes to 44,000 tonnes,” - adds Tadeusz Nowicki.


ERGIS Group is Central and Eastern Europe's leading manufacturer of PVC products: films, compounds, wallpapers, wall panelling, and windowsills. The Company's offer includes films laminated with a layer of another film, paper, woven and non-woven fabric, etc. printed films, insulation films, packaging films (including films for packaging pharmaceuticals), bus floor covering, compounds for cable manufacturing, interior and exterior wall panels, expansion joint tapes, artificial leather, coated fabrics, tablecloths, and vinyl and paper wallpapers. Additionally, the Group is Poland's largest manufacturer of stretch films (tensile films, used e.g. for wrapping loads on pallets, PVC thermoshrink films (used, e.g. for food packaging) and PET and PP tapes (used for fastening medium heavy and heavy products and loads), as well as a distributor of polypropylene BOPP film (used mainly for packaging manufacturing). The Group manufactures also packaging film for food industry (laminates, single layer films, rigid films, flexible films, ‘skin’ films), as well as flexible packaging films and multi-layer laminates.

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