Ergis

Press Release

07 September 2017, 23:15

Ergis Group results after 1H 2017: Increase of sales revenue by 6,6% and net profit by 12,4%

ERGIS Group, the leader in of plastics processing in Central and Eastern Europe, has published financial results for the first half of 2017. The Group recorded a revenue of PLN 373.5 million (increase of 6.6%), EBITDA level reaching PLN 33.9 million (increase of 1.4%), operating results amounting to PLN 22.2 million (increase of 6.8%) and net profit of PLN 15.8 million (increase of 12.4%). The interest bearing debt in the presented period decreased by 2%.

Increase in profitability mainly results from growth of sales of the innovative nanoErgis stretch film by 15%. Development of sales of rigid packaging films and soft PVC films also contributed to the growth of sales. Sales to foreign markets increased by 7% (despite of the EUR/PLN exchange rate being lower by 5%) and sales in Poland increased by nearly 6%.

On 11th of July, i.e. before the assumed deadline, the Group launched another line for nanoErgis® film production in the Oława plant.

The Group started implementation of an investment related to a new line for PET films and laminates production in MKF-ERGIS GmbH in Berlin.

FINANCIAL RESULTS – DETAILS

Financial results of the ERGIS Group after 1H 2017 are presented in the table below:

PLN thousand 

1H 2017

1H 2016

Dynamics

Sales revenue

373,469

350,390

6.6%

Operating profit

22,237

20,823

6.8%

Gross profit

20,595

17,286

19.1%

EBITDA

33,889

33,420

1.4%

Net profit

15,767

14,022

12.4%

Interest bearing debt

152,243

155,141

-1.9%

In my estimation, results of the first half of 2017 are good, despite unprecedented increase of costs relating to payroll as well as raw materials and energy. I am satisfied with results of sales, which increased by 7% outside Poland and by nearly 6% in the domestic market. Consistent introduction of new products and technologies (nanoErgis®) as well as efficient restructuring in previous years allowed us in another quarter of 2017 to generate a better result year over year” – said Tadeusz Nowicki, President of the Management Board of ERGIS S.A.

As a fulfilment of our announcements, in July, which is before the estimated deadline, we launched another line for nanoErgis® production in the Oława plant. We have started implementation of an investment related to a new line for PET films and PET laminates production in MKF-ERGIS GmbH in Berlin” - Tadeusz Nowicki added.

ADDITIONAL INFORMATION

The ERGIS Group, listed at the Warsaw Stock Exchange, holds the leading position in the plastics processing sector in Central and Eastern Europe. Out of its five manufacturing plants, four are situated in Poland and one in Germany. The Group`s profile includes manufacturing of packaging for food (printed multilayer laminates, and PVC and PET – based barrier films and laminates) and industrial packaging (LLDPE stretch films and PET binding tapes). Moreover, ERGIS is a manufacturer of films for packaging pharmaceuticals, hydro – insulating films and PVC compounds. In 2016 the Group`s revenue exceeded PLN 696 million.

Additional information is also available at www.ergis.eu