Ergis

Komunikat prasowy

29 lipca 2019, 17:15

Preliminary results of the Ergis Group after 1h 2019: further increase of sales but the adverse situation on the market of raw materials brings the drop of profitability

The ERGIS Group, the leader in plastics processing in Central and Eastern Europe, has published its preliminary results for the first half of 2019.

 In the first half of the year, the Group generated sales by 1.4% higher than in the correspondent period 2018, whereas the operating profit and other indexes of profitability have decreased. One of the causes of decrease of the results in the first half of 2019 were the difficulties at the market of rigid films and food laminates.

 FINANCIAL RESULTS – DETAILS

PLN thousand

1H 2019

(preliminary)

1H 2018

Dynamics

Sales revenue

403,910

398,514

1.4%

Operating profit

14,361

16,633

-13.7%

EBITDA

26,834

28,462

-5.7%

Gross profit

11,337

13,799

-17.8%

Net profit

8,023

11,291

-28.9%

Interest bearing debt

129,830

128,526

1.0%

The core problem is a very unfavourable relation between the prices of recycled and virgin (PET virgin) raw materials, as well as overproduction of plastic food packaging.  In the first half of 2019, the EBITDA generated by the sales of food packaging was by over 20% lower than in the correspondent period of 2018.

Despite increase of sales revenue by 2.3%, EBITDA generated by the sales of stretch films was lower by 12.3% compared to the first half of 2018. The elementary reason of the drop in profitability of this business is a strengthened competition, which results from decreased demand in many sectors.

The Group has fully accomplished its goals related to the EBITDA profit generated by the sales of PET strapping bands as well as PET flakes. The financial results reached on sales of soft PVC films were not much different from the expectations and were more favourable from the ones generated in the first half of 2018.

 

Despite the fact that our sales have grown by 1.4%, the operating profit and other indexes of profitability went down, which was influenced by the adverse situation of prices of raw materials at the market of rigid films and food laminates as well as by the intensified competition induced by a decreased demand.  Nonetheless, the first half of 2019 has brought satisfactory results with regards to the level of EBITDA generated by the sales of PET strapping bands and PET flakes – said Tadeusz Nowicki, the 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, PVC and PET – based barrier films and laminates) and industrial packaging (LLDPE stretch films and PET strapping bands). Moreover, ERGIS is a manufacturer of films for packaging pharmaceuticals, hydro – insulating films and PVC compounds. In 2018 the Group’s revenue exceeded PLN 776.3 million.

 

 

Additional information is also available on www.ergis.eu

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