ATHEX: PLAT
Reuters: THRr.AT
Bloomberg: PLATGA
The purpose of the current release is to present the Group’s financial results for the fiscal year 2017 and to highlight the basic factors that contributed to such.
The major developments of the period are highlighted as following:
· Growth in the consolidated sales volume (+11.6%) as a result of the investments in new production lines during the 2-year period 2015-2016. The Sales volume increase refers to both business units of the Group (Technical Fabrics +12.1% and Packaging +9.1%).
· Increase of consolidated Turnover by 9.1% - the sales volume growth was not fully reflected into the value of the consolidated sales due to a more elastic pricing policy followed by the Group in order to sell the additional production volumes. Also, a negative effect on consolidated turnover emerged from foreign exchange differences that resulted from the depreciation of the dollar and the English pound against the Euro.
· Lower demand for the products of Technical Fabrics Unit in the American market
· Gross profit margin contraction mainly due to the following factors:
- Following the efforts to achieve the main objective which was the exploitation of the production capacity and the sale of the increased product volumes, a more elastic pricing policy was followed which resulted to lower profit margins.
- The fact that the raw material prices increased gradually during the first four months of 2017 did not enable the transfer of the higher cost into the sale prices. The particular factor was more evident in the Group’s subsidiary in Scotland where the raw material prices were further increased due to the exchange rate GBP/EUR.
Specifically, the major results of the Group for the year 2017 compared to the year 2016 are summarized as follows:
(amounts in € million) |
2017 |
2016 |
Change (%) |
Consolidated Turnover |
318.5 |
291.9 |
+9.1% |
Consolidated Gross Profit |
66.9 |
66.4 |
+0.7% |
Consolidated ΕΒΙΤ* |
17.2 |
22.9 |
-25.0% |
Consolidated EBITDA* |
30.1 |
35.2 |
-14.3% |
Consolidated EBT |
13.8 |
18.3 |
-24.5% |
Consolidated EATAM |
10.6 |
13.4 |
-21.2% |
Basic Earnings per share (in €) |
0.2412 |
0.3040 |
-20.7% |
The total Equity on 31.12.2017 amounted to € 137.4 million compared to € 122.8 million on 31.12.2016 with the Net Bank Debt standing at € 57.8 million compared to € 54.7 million on 31.12.2016. The ratio Net Bank Debt / Total Equity settled at 0.42x compared to 0.45x on 31.12.2016 and the ratio Net Bank Debt / EBITDA settled at 1.9x versus 1.6x on 31.12.2016, remaining within the range targeted by the Group’s Management as far as the particular ratio is concerned.
Investments of Fiscal Year 2017
For the fiscal year 2017, the Group implemented investments of 21.7 million Euros of which 14.1 million Euros concerned the Technical Fabrics Unit and mainly the Group’s subsidiaries in Xanthi, Greece and Scotland, and 7.6 million Euros concerned the Packaging Unit and mainly the subsidiaries in Ioannina, Greece and Bulgaria.
Proposed Dividend of Fiscal Year 2017
At the Ordinary General Meeting of the Company’s Shareholders which will convene on May 15th, 2018, the Board of Directors will propose the distribution of a total gross dividend amounting to 2,058,217 Euros. Specifically, the Board of Directors will propose the distribution of a gross dividend amounting to 0.047054 Euros per share, which has included the incremental dividend corresponding to the treasury shares held by the Company (4,324 own shares). The net amount which will be received by the shareholders after the withheld tax of 15% according to L. 4172/2013 will settle at 0.04 Euros per share.
Prospects and Outlook of the Group for the Financial Year 2018
The evolution of the Group’s financial performance during the first quarter of the current year in terms of turnover and operating profit compared to the corresponding period of 2017 is deemed as positive, since during the first quarter of 2018 there is an increase in sales volume of both sectors for the Group’s activities, namely Technical Fabrics and Packaging. At the same time as result of the maturity of new investments, there is also a recovery in the previously weak profitability of the Technical Fabrics unit seen in year 2017. Following the completion of the investment plan of the Greek subsidiaries which was implemented during the years 2015 – 2016 for an amount of 52 million Euros, the Group continues with the implementation of the investment plan for the period 2017 – 2018 towards its foreign subsidiaries. The investment plan is estimated to account for 44 million Euros.
The maintenance of the healthy financial structure of the Group, despite its expanded investment program during the past four years, in conjunction with the healthy operating and organizational structures which are in effect, provide the Management of the Group with the ability to continue its efforts towards the attainment of its strategic goals. For the fiscal year 2018, the Group’s Management estimates that there will be an increase in the sales volume and turnover, and it also expects an improvement in the profitability of the Group. However the above estimates and outlook should not be taken for granted as they may be affected by a major international event.
* Note
Alternative Performance Measures (APM):During the description of the developments and the performance of the Group, ratios such as the EBIT and the EBITDA are utilized.
EBIT (The indicator of earnings before the financial and investment activities as well as the taxes): The EBIT serves the better analysis of the Group’s operating results and is calculated as follows: Turnover plus other operating income minus the total operating expenses, before the financial and investment activities. The EBIT margin (%) is calculated by dividing the EBIT by the turnover.
EBITDA (The indicator of operating earnings before the financial and investment activities as well as the depreciation, amortization, impairment and taxes): The EBITDA serves the better analysis of the Group’s operating results and is calculated as follows: Turnover plus other operating income minus the total operating expenses before the depreciation of fixed assets, the amortization of grants and the impairments, as well as before the financial and investment activities. The EBITDA margin (%) is calculated by dividing the EBITDA by the turnover.