Press Release

15 October 2015, 22:38

Preliminary results of the Ergis Group for the third quarter of 2015. Negative impact of adverse market events.

The preliminary results of the ERGIS Group, leader in plastics processing in Central and Eastern Europe, for the third quarter of 2015 show a revenue of PLN 167.6 million (i.e. down by 1.2% from the previous year), an operating profit of PLN 3.8 million (down by 50.0% from the third quarter of the previous year), a gross profit of PLN 2.5 million (down by 59.7% from the previous year), EBITDA of PLN 10.5 million (down by 21.0% from the third quarter of 2014) and net profit of PLN 2.2 million (down by 58.5% in comparison to the third quarter of the previous year).

Simultaneously, the preliminary performance was better in the first nine months of this year as compared to the same period in 2014.

The table below presents the preliminary financial results of the ERGIS Group in 2015, both for Q3 and year-to-date: 


in PLN million

Q3 2015*

Q3 2014


Q1-Q3 2015*

Q1-Q3 2014









Operating profit







Gross profit














Net profit







*Preliminary results

According to the Management Board, the key factors affecting the current results include:

  1. Lower sales than expected of hard laminates for food products, caused by clients shifting part of their orders to competitors, fearing problems with the transfer of production lines from Gallin to Berlin, which results in a margin lower than the expected level by about PLN 2 million. The transfer is completed now and the Group’s production capacity is back to its previous level.
  2. Persistence of a very unfavourable price relationship between PET flakes from recycling and PET granulate, which reduces the competitive advantage of flake-based production – resulting in a margin lower by about PLN 2 million than the expected level.
  3. Greater difficulty than expected in the development of PET tape sales after the doubling of the capacity of the newly installed line – resulting in a margin lower than the expected level by about PLN 1.5 million.
  4. The sales structure of PE stretch film being less favourable than the results expected after the second quarter, which the Management Board believes is connected with the expectations of clients of a further decline in polyethylene prices and, consequently, their decisions to suspend purchases – resulting in a margin lower than the expected level by about PLN 1 million.

It was not possible to realise the expectations of the market concerning the benefits which the Group was supposed to achieve due to the declining trend of raw material prices which emerged during the third quarter. In reality, the actual drop in polymer prices was less than the observed decline in prices of petroleum products. In turn, the declining prices of raw materials triggered intense pressure by clients who expected lower prices, while the average prices of raw materials were actually similar to those of the prior quarter. In addition, with sales lower than expected, the revaluation of inventory of both finished products and raw materials had a negative impact on the Q3 financial results.

“The third quarter of 2015 was a difficult period for the Group and the results achieved can hardly be deemed satisfactory. A coincidence of adverse circumstances and market events reduced the Group’s margin by about PLN 6.5 million. Against all odds, this year’s results for the first nine months are still better than in the same period of 2014,” said Mr Tadeusz Nowicki, President of the Management Board of ERGIS SA. 

Although the ERGIS Group has not previously published any forecasts or preliminary results, the Group has decided to present its preliminary results for Q3 2015 because, the Management Board believes, they depart from expectations of both shareholders and the Management Board and, hence, shareholders may find this information important.



The ERGIS Group is the leader in plastics processing in Central and Eastern Europe. Out of its six manufacturing plants, four are situated in Poland and two in Germany. The Group’s profile includes manufacturing of packaging for food (films and PVC and PET-based barrier laminates, printed multilayer laminates) and industrial packaging (LLDPE stretch films and PET films). Moreover, ERGIS is a manufacturer of films for packaging pharmaceuticals, hydro-insulating films and PVC compounds. In 2014, the Group’s revenue exceeded PLN 667 million.

Additional information is also available at