Press Release

15 May 2008, 09:47


The ERGIS Group, leading plastics processor in Central and Eastern Europe, recorded consolidated revenue on sales for the first quarter at PLN 142.77 million, marking a 60.7% increase over last year’s PLN 88.86 million. Simultaneously, operating profit for the period increased to reach PLN 5.74 million, 42.2%, more than PLN 4.03 million in Q1/2007. Net profit amounted to PLN 3.39 million and surpassed the net profit for Q1/2007 (PLN 3.13 million) by 8.3%. 

Key events of the first quarter:  

-  In the first quarter, the Group’s revenue increased by 60.7% in comparison to the first quarter of 2007, reaching PLN 142.77.

-  Operating profit increased by 42%, to PLN 5.73 million, as compared to PLN 4.03 million a year before.

- The Group’s foreign sales increased by as much as 196%, reaching PLN 77.44 million as compared to PLN 26.25 million the year before.

-  After the audit of the 2007 results the company reached PLN 12.59 million of consolidated net profit, compared to net PLN 8.5 million disclosed in the report for the fourth quarter of 2007.


The financial results of the ERGIS Group are presented in the table below: 

PLN ‘000Q1/2007Q1/2008Change2007/2008
Revenue on sales88,863142,773+60.7%
Gross profit3,610*4,813+33.3%
Operating profit4,032*5,735+42.2%
Net profit3,132*3,391+8.3%

* The amounts of operating profit as well as gross and net profit for the first quarter of 2007 were influenced by a one-off transaction of releasing the environmental protection provision, which increased the result by PLN 1.24 million. 

The sales of the ERGIS Group increased dynamically. This was in particular influenced by the foreign sales increasing by 196% in this period. As a result, foreign sales became a large part of the total sales of the Group: 54.24% as opposed to 29.54% the year before. Flexergis was consolidated with full method within the Group’s results for the entire first quarter, while in the previous year its results were only considered from February 1, that is from the execution of the agreement leading to the company’s acquisition. The first quarter of 2008 also meant full consolidation of the two German companies: MKF Folien GmbH and Schimanski GmbH and the Polish company Lonni, acquired in the second half of 2007. 

The sales structure of the ERGIS Group for Q1/2008 is presented in the table below: 

 ValueDynamic Structure
Stretch film33,03833,54398.49%23.14%37.75%
Soft PVC films19,24819,030101.15%13.48%21.42%
Compounds and extruded PVC products17,40416,070108.30%12.19%18.08%
Printed packaging8,6436,999123.49%6.05%7.88%
Rigid PVC films17,5984,259413.20%12.33%4.79%
Other packaging films2,2382,46290.90%1.57%2.77%
PET films13,733,100.00%9.62%0.00%
PP/PS films2,4392,209110.41%1.71%2.49%
PET tapes1,606217740.09%1.12%0.24%
Other sales1,7721,298136.52%1.24%1.46%
Total revenue on sales, including:142,77388,864160.66%100.00%100.00%
   - domestic sales 65,33662,612104.35%45.76%70.46%
   - foreign sales77,43726,251294.99%54.24%29.54%


After the acquisition of German films producers in the fourth quarter of 2007, the Group increased its sales denominated in euros. Additionally, strong Polish zloty and an increase in raw materials prices had an adverse effect on the Group’s profitability. The Group, however, manages to effectively protect itself against unfavourable circumstances. Liabilities from the acquisitions are, for the most part, expressed in euros. This results in the strong zloty decreasing the financial costs related to the purchased companies. 


The ERGIS Group concentrates on integrating the capital group and thus reaching best possible efficiency.
The actions of the Group aim first and foremost at the development of sales of goods produced by MKF-Folien and Schimanski in the Polish market, as well as the development of sales of products of the ERGIS Group (including PET tapes, stretch films and laminates for food products), both through the existing distribution network and by sales forces of MKF-Folien and Schimanski. ERGIS-EUROFILMS focuses also on the application of technological synergy effects in order to increase profitability.  - The priorities of the ERGIS Group in the coming months are organic growth and maximising synergy effects in the Group in order to obtain highest possible efficiency. We are implementing these objectives systematically. We do not reject further development through acquisitions. Decisions on the matter, however, are more likely to be made in the middle-term – declares Tadeusz Nowicki, President of the Management Board of ERGIS-EUROFILMS S.A.   


ERGIS-EUROFILMS SA was created through this year’s merger of the listed Eurofilms and its trade investor, ERGIS S.A. The merged Company is Poland’s largest and one of Central and Eastern Europe’s leading manufacturers 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 Company is Poland's second 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 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). Additional information is also available at 

MKF-Folien GmbH Minderjahn + Kiefer is one of leading German manufacturers of PET and PVC rigid films, used mainly in food industry and in technical sectors. The company production capacity is 20,000 tons of PET film, and 12,500 tons of PVC film.  

Schimanski GmbH is a manufacturer of PET/PE and PVC/PE rigid films laminates, used mainly in food industry (e.g. for packaging meat or cheese, with the annual production capacity of about 16,000 tons.  

  • Ergis Group Results Q1/2008