Ergis

Komunikat prasowy

24 października 2019, 12:36

After three quarters of 2019, The Ergis Group presents financial results that are similar to those generated last year

ERGIS Group, the leader in plastics processing in Central and Eastern Europe, has published its preliminary results after three quarters of 2019.

Results for the third quarter of 2019 were better than those generated a year before, thereby the return on sales after three quarters falls close to the one achieved 2018. After three quarters of 2019, the sales revenue increased by 0.4% when compared to the three quarters of 2018, EBITDA level was higher by o 0.7% and the operating profit dropped by over 13%. 

FINANCIAL RESULTS – DETAILS

 

PLN thousand

1-3Q 2019

(preliminary)

1-3Q 2018

Dynamics

Sales revenue

596,790

594,212

+0.4%

Operating profit

21,558

22,078

-2.4%

EBITDA

40,341

40,074

+0.7%

Gross profit

17,029

18,317

-7.0%

Net profit

13,211

15,239

-13.3%

Interest bearing debt

144,111

168,565

-14.5%

Despite the implemented investments, the Group has not been able to achieve the expected increases due to external factors such as fluctuations in the economic situation in Poland, deteriorating economic conditions in the EU countries and a media campaign showing plastics in a bad light. The increase in employment costs observed in Poland was also significant. The slight decline in the prices of most raw materials to some extent offset the negative effects of these factors.

In the third quarter, the Group recorded a relatively good return on sales of soft PVC films and Greenstrap® PET tapes.  Despite the further deterioration in the relationship between prices of recycled PET and "virgin" PET, the profitability of sales of rigid PET films and laminates for food packaging improved slightly.

Low sales, and a poorer apportionment of fixed costs in consequence, had an influence on decrease in return on sales of flexible laminates for food packaging. Profitability of sales of stretch films has also been unsatisfactory, which stems from increasing competition accompanied by dropping demand.

Considering the unfavorable light in which plastics are being put in the media today, as well as increasingly difficult conditions for conducting industrial activity in Poland (including employment costs, electricity prices), the presented results can be considered satisfactory. Today, the real dilemma for plastics processors is to define a future strategy that would convince the public that an effective method of environmental protection is not "breaking with plastic" but reducing the amount of plastic waste – especially the one which is not recycled – said Tadeusz Nowicki, the President of the Ergis Group. 

ADDITIONAL INFORMATION

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, PET and PVC-based barrier films and laminates) as well as 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 about the company is also available at: www.ergis.eu

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