Ergis

Komunikat prasowy

13 września 2018, 22:45

Ergis Group results after 2018 first half - increase of sales, profitability under pressure

The ERGIS Group, the leader in plastics processing in Central and Eastern Europe, published its report for the first half of 2018.

After first six months of 2018, the Group’s revenue increased by 7.5% up to PLN 398.5 million.  EBITDA dropped by 15.3% to PLN 28.5 million, operating profit decreased by 26% to PLN 16.6 million and the net profit was lower by nearly 29% Y-O-Y and amounted to PLN 11.3 million.

FINANCIAL RESULTS – DETAILS

2018 first half and the second quarter results are presented in the table below.

 PLN thousand

I H 2018

I H 2017

Dynamics

II Q 2018

II Q 2017

Dynamics

 
 

Sales revenue

398,514

370,738

7.50%

207,299

187,337

10.70%

 

Operating profit

16,633

22,457

-25.90%

8,966

11,286

-20.60%

 

Gross profit

13,799

20,815

-33.70%

7,695

10,277

-25.10%

 

EBITDA

28,462

33,622

-15.30%

14,944

16,588

-9.90%

 

Net profit

11,291

15,840

-28.70%

6,124

7,409

-17.30%

 

Interest bearing debt

128,526

152,202

-15.60%

128,526

152,202

-15.60%

 

In the first half of the year, the Group enjoyed a strong demand on the domestic market as well as good sales of stretch films and PET tapes. Increase was also noted in sales of printed packaging. On the other hand, however, increase of labour costs proved to be noticeable. The Group’s results were burdened by unfavourable prices of raw materials – a lot of them increased (PET) or remained on a high level (PVC). A lower return on sales of rigid films and laminates for food packaging also negatively affected the results.

We are glad about the dynamics of revenue increase, which denotes the company’s strengthening position on the market. By contrast, drop in Y-O-Y profits is caused by growing labour costs and persisting unfavourable situation on the market of raw materials, increase of PET prices and continuously high prices of PVC in particular. The presented results give us hope that we can reach the profitability level, which was observed over previous years, provided that the situation on the Polish labour market becomes stable. It would bring full benefits from the generated increase of sales to the stakeholders – said Tadeusz Nowicki, President of the Ergis Group. 

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 food packaging (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 2017 the Group’s revenue exceeded PLN 750 million.

Additional information is also available at www.ergis.eu

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