Financial Results of first quarter 2023


4% increase in EBITDA from traditional portfolio. Smooth implementation of the planned investments which amounted to €30 mil.

ΤHRACE PLASTICS CO S.A.

30.5.2023

FINANCIAL RESULTS OF FIRST QUARTER 2023

4% increase in EBITDA from traditional portfolio

Smooth implementation of the planned investments which amounted to €30 mil.

 

ATHEX:                 PLAT

Reuters:               THRr.AT

Bloomberg:        PLAT GA

First quarter 2023 Highlights:

  • Turnover: €93.0 mil.

  • EBITDA: €11.7 mil.

  • Earnings before Taxes (EBT): € 5.4 mil.

  • Low Net Debt: €14.8 mil.

  • Annual dividend distribution of ~€0.26 per share - after deducting the interim dividend, additional distribution of €8.3 million or ~€0.19 per share

 

THRACE GROUP announces the financial results for the first quarter 2023.

 

First quarter 2023 Financial Results

 

The Group’s turnover amounted to €93 million, while the corresponding level during the previous year had settled at €106.3 million. The above change was fully expected mainly due to nearly zero demand for COVID-19 related products, due to the significant drop in the average prices sales and also due to the marginal drop in product volumes of 4% (due to low demand from the deterioration of the broader environment). It should be noted that in the first months of 2022, raw material prices moved upward at historically high levels and therefore sales prices also moved significantly upward, especially in Technical Fabrics Segment, with a relative downward correction in the first quarter of 2023.     

 

During the first quarter of 2023, Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) amounted to €11.7 million. Respectively in the first quarter of 2022, EBITDA had reached € 15.5 million. However, in the first quarter of 2022 when deducting the earnings generated from COVID-19 related products (of approximately €4.3 million), then on a fully comparable basis, the EBITDA in the first quarter of 2022 had actually settled at €11.2 million, and therefore the first quarter of 2023 EBITDA demonstrated an increase of 4%.     

 

Therefore, it is now clear that despite the particularly difficult conditions prevailing in the global economy, the Group for another quarter is in a strong position to achieve stable, sustainable and high recurring profitability. Furthermore, this achievement was realized under economic recession, showing the Group's ability to adapt to the new conditions emerging each time, demonstrating both flexibility and resilience.    

   

Regarding the liquidity levels of the Group and the trading cycle of the subsidiaries, there was no negative effect due to the difficult conditions observed during the period under consideration. On the contrary, the Group's Net Debt declined to €14.8 million, compared to €21.5 million at the end of the previous year.

 

At the same time, the implementation of the planned investments of the Group progresses smoothly with their level for 2023 expected to approach €30 million on a cash basis. These investments refer mainly to the Group's facilities in Greece but also to the other countries of operation.

 

More specifically, the following table depicts the key financial figures from continuing operations of the Group during the first quarter 2023 compared to first quarter 2022:

 

CONSOLIDATED FINANCIAL RESULTS (in € thous.) Continuing Operations

31/03/2023

31/03/2022

Change (%)

Turnover

92,996

106,257

-12.5%

Gross Profit

20,656

24,687

-16.3%

ΕΒΙΤ

5,999

10,134

-40.8%

EBITDA*

11,654

15,531

-25.0%

EBT

5,396

10,742

-49.8%

Earnings after Taxes

3,915

8,790

-55.5%

Earnings after Taxes and Non-Controlling Interests

3,788

8,666

-56.3%

Basic Earnings per Share (in €)

0.0881

0.2002

-56.0%

* Q1 2022 EBITDA includes gains from COVID-19 products. The comparable Q1 2022 EBITDA from traditional portfolio amounted to €11.2 mil., change 4%.

It should be noted that the Ordinary General Meeting approved the distribution of a dividend of 11,300,000 (gross amount), which corresponds to a total of 0.2583361887 Euros per share (gross amount), where minus the interim dividend, which has already been distributed, the remaining amount to be distributed amounts to €8,300,000 (gross amount) or 0.1897513599 Euros per share (gross amount).

Prospects of the Group

 

Regarding the prospects for the year 2023, the Management closely monitors the macroeconomic developments, on a global level, which are still characterized by inflationary trends thus affecting all cost items that constitute the industrial sector’s cost base. On the other hand, there is also evidence of a slight de-escalation in the prices of primary and secondary materials and of transportation costs. At the same time, demand remains at very low levels, having however slightly recovered from the levels experienced in the last months of 2022.

 

For the second quarter of 2023, the Group's Management monitors and adapts to the changes taking place at the macroeconomic level, making an effort to achieve the best possible financial performance, while simultaneously managing the inherent business risks. More specifically, the Group's Management anticipates that a significant profitability will be achieved in the second quarter of the year as well, which demonstrates the Group's ability, despite the intense and difficult market environment, to remain focused on its ultimate goals. Therefore, it is estimated that for the first half of 2023, if the market conditions are not significantly changed, the EBITDA will be at the same level approximately with the EBITDA of the first half of 2022 from traditional portfolio, i.e. excluding the profits of COVID-19 products, which for the first half of 2022 amounted to approximately €4.7 million at an EBITDA level.

 

For further clarifications or information regarding the present release, please refer to the Department of Investor Relations and Corporate Announcements, tel,: + 30 210-9875081.