Ergis

Komunikat prasowy

17 maja 2017, 23:15

Ergis Group after Q1 2017: Good results, recommendation of dividend pay-out in the record-breaking amount of PLN 0,20 per share.

In the first quarter of 2017, the ERGIS Group, a leader in plastics processing in the Central and Eastern Europe, generated revenue of PLN 183.4 million (growth by 6.3%). Operating result in that period amounted to PLN 11.2 million (up by 8.3%), EBITDA reached PLN 17 million (up
by 2.8%), while the net result totalled PLN 8.4 million (up by 22.2%).

It is worthwhile to mention a boost of 9.5% with respect to gross margin on sales, which reached PLN 29.8 million in the first quarter of 2017 compared to PLN 27.2 million a year before. This is the effect of the restructuring carried out in German companies as well as a significant improvement in the profitability of recycling as a result of an investment implemented at the beginning of 2016. Consequently, in the first quarter of 2017 the Group’s EBITDA went up to PLN 17 million as compared to PLN 16.5 million in the same period of 2016.

As announced earlier, the Group is building another line for the extrusion of the nanoErgis® film in
the Oława plant which is to be launched ahead of schedule. There is a chance that the production will commence in July. The Group has also made a decision to invest in a new line for the production of PET film and laminates by MKF-ERGIS GmbH in Berlin.

The Supervisory Board has approved the Management Board’s recommendation for the General
Shareholders Meeting regarding the dividend pay-out for 2016 in the amount of PLN 0.20 per share, which is the highest value in the Company’s history.

FINANCIAL PERFORMANCE IN DETAILS

The following table shows the ERGIS Group’s financial performance in Q1 2017:

PLN ‘000

Q1 2017

Q1 2016

Dynamics

Revenue

183,400

172,579

+6.3%

Operating profit

11,171

10,315

+8.3%

Gross profit

10,539

8,812

+19.6%

EBITDA

17,034

16,569

+2.8%

Net profit

8,431

6,902

+22.2%

 

In the first quarter of 2017 the prices of strategic raw materials were higher than in the fourth quarter of 2016 (from 2.5% to 18%). In comparison to the first quarter of 2016, the prices of most of the raw materials, except for LLDPE and PET flakes (which experienced slight falls) were more than a dozen percent higher. The Group’s revenue for the first quarter of 2017 was higher by 6.3% in relation to the same period of the previous year, with the average PLN/EUR exchange rate lower by 1.5%.

The Ergis Group’s gross profitability of sales for the first quarter of 2017 was slightly higher than in
the same period of 2016 and equalled 16.3% (as compared to 15.8%), and the value of the margin clearly exceeded the last-year’s result (PLN 29.8 million in the first quarter of 2017 as compared to PLN 27.2 million in the same period of 2016). This is the effect of the restructuring carried out in the Rigid Films Division as well as a significant improvement in the profitability of recycling as a result of an investment implemented at the beginning of 2016. Consequently, in the first quarter of 2017 the Group’s EBITDA went up to PLN 17 million as compared to PLN 16.5 million in the same period of 2016.

 “In my opinion, the results of the first quarter of 2017 are favourable. Consistent implementation of new products and technologies (nanoErgis®) and effective restructuring were the reasons why in the first quarter of 2017 we managed to achieve a better net result than in the first quarter of the previous year despite the major growth in the prices of raw materials, which caused a reduction in sale margins of a large number of products,” said Tadeusz Nowicki, President of the Management Board of ERGIS S.A.

“The Management Board is of the opinion that the Company’s current situation is favourable, and therefore decided to recommend to the General Shareholders Meeting that a dividend should be paid in the amount of PLN 0.20 per share, which is a record-breaking value in the Company’s history,” said Tadeusz Nowicki.

ADDITIONAL INFORMATION

The ERGIS Group, listed at the Warsaw Stock Exchange, holds the leading position in the plastics processing sector in the 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