ATHEX: PLAT
Reuters: THRr.AT
Bloomberg: PLAT GA
The purpose of the current release is to present the Group’s financial results for the first half of 2019 and to highlight the basic factors that contributed to such.
The basic characteristics of the period are summarized as follows:
· Increase of consolidated turnover by 3.6% and marginal increase in the volume of consolidated sales by 0.4% which is attributed to the Packaging Sector.
· Lower demand in the business segment of geosynthetics in the US market and in the market of carpet backing materials due to a broader downtrend in the market and also due to increased competition from low production cost countries.
· The above drop is partially offset from the higher sales volume of the Greek subsidiaries mainly in the Packaging unit and in the Technical Fabrics unit.
· Drop in the Gross Profit by 2.3% and contraction of the profit margin which is due to the Technical Fabrics unit and specifically to the following factors:
§ The uncertainty over BREXIT has resulted into lower demand for a series of products of the Group’s subsidiary in Scotland leading to further contraction of sale prices. The significantly stronger competition from low production cost countries (Turkey, Saudi Arabia) in the market of carpet backing materials has resulted into lower sales and declining profit margins. Finally, due to the prevailing market conditions in Great Britain, the transfer of raw material price increases, due to the EUR/GBP exchange rate, to the final sale prices has been extremely difficult.
§ The lower demand of geosynthetics in the US market continued to be the case in the first half of the current year and was combined with pressures in the sale prices amid very intense competition.
§ The stronger sales in conjunction with the production cost containment in the Group’s Greek subsidiaries in the Packaging unit led to an improvement of profit margins which partially offset the lower margins in the Technical Fabrics.
· Positive impact from the foreign exchange differences on the Group results, even though to a smaller extent as compared to the first half of 2018.
Specifically, the major financial figures of the Group during the first half of the current year as compared to the first half of 2018 settled as follows:
(amounts in EUR million) |
1st half 2019 |
1st half 2018 |
% Change |
Consolidated Turnover |
171.13 |
165.21 |
+3.6% |
Consolidated Gross Profit |
33.6 |
34.45 |
-2.3% |
Consolidated ΕΒΙΤ* |
8.54 |
9.56 |
-10.7% |
Consolidated * |
16.29 |
16.28 |
+0.1% |
Consolidated EBT |
6.59 |
7.57 |
-12.9% |
Consolidated EATAM |
4.20 |
5.33 |
-21.2% |
Basic Earnings per Share (in Euro) |
0.0961 |
0.1219 |
-21.2% |
The total Equity on 30.06.2019 amounted to € 142.6 million compared to € 141.6 million on 31.12.2018 and the Net Bank Debt amounted to € 91.0 million compared to € 78.3 million on 31.12.2018. The ratio Net Bank Debt / Total Equity settled at 0,64x compared to 0.55x on 31.12.2018.
Prospects for the 2nd Half of 2019
The Group’s Management taking into account the market conditions prevailing in the current year as well as the seasonality of the product sales in the two business segments of the Group, estimates that both Turnover and Operating Profit in the 2nd half 2019 will be slightly improved compared to the corresponding figures of the 2nd half 2018
Moreover, due to the Group’s significant geographic dispersion in terms of business activities, any major international event such as the disruption of the trading relations between countries and specifically the scenario of Great Britain’s final and definitive withdrawal from the European Union generate conditions of uncertainty in the market. Despite the above, the Group’s Management estimates that through a strong capital structure and risk diversification, is in a position to minimize any negative effect on the Group’s business activity and therefore continue on an uninterrupted basis the operations and fulfillment of its strategic objectives.
* 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.