Financial Results of first quarter 2025

Increase in Turnover (9%) and Volumes Sold (+5%), albeit the adverse conditions

ATHEX: PLAT
Reuters: THRr.AT
Bloomberg: PLAT GA

Period Summary:

• Volumes Sold of 31.1 thousand tons (+5%)
• Turnover of € 96.4 mil. (+9.2%)
• Adjusted EBITDA amounted to € 9.4 mil.
• Net Debt amounted to € 48.1 mil.
• Prospects for rapid recovery in Operating Profitability (EBITDA) within the First Half of the year

THRACE GROUP presents the financial results for the first quarter 2025.

First quarter 2025 Financial Results

During the first months of 2025, economic trends largely mirrored those of the previous year, as both macroeconomic factors and geopolitical tensions persisted. Concurrently, the threat of tariff imposition by the United States and the broader uncertainty it generates have created conditions of caution and anticipation regarding future developments, resulting in relative market stagnation. Overall, demand during the quarter followed the trajectory observed in the final months of 2024, remaining subdued—particularly in Central Europe and the United Kingdom.

In terms of the Group’s business segments, the first quarter of the year was characterized by continued weak demand in the Technical Fabrics sector, albeit with a mild recovery in certain product categories. Demand in the Packaging sector remained stable.

Specifically, during the first quarter of 2025, the following trends were observed:

• Weak demand for construction-related products, with mild signs of recovery in specific markets.
• Stable demand for infrastructure and large-scale project-related products.
• Weak demand for agricultural sector products.
• Stable demand for food and paint packaging products.
• Market share increase across most business segments.
• Increased raw material costs compared to the end of the previous year, despite relatively weak demand.
• Significantly higher energy costs compared to the same quarter of the previous year.
• Stable transportation costs with minor fluctuations.
• Stable costs for secondary materials and packaging materials.
• Stable borrowing interest rates.

In financial terms, the Group’s turnover for Q1 2025 amounted to €96.4 million, compared to €88.3 million in the same period of the previous year, representing an increase of 9.2%. This growth is attributed to both higher sales volumes (which increased by 5.0% year-over-year) and a moderate rise in average selling prices.

Regarding operating profitability, adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for Q1 2025 amounted to €9.4 million, marking a 23.7% decrease compared to Q1 2024 (€12.3 million). This decline in operating profitability compared to the previous year was largely expected, due to: (a) continued weak demand, particularly in the construction and agricultural sectors, and (b) the increase in the cost base, especially the rise in energy costs, as Group-level energy expenses were higher by €2.5 million compared to the same quarter of the previous year.

In terms of liquidity and the working capital cycle of subsidiaries, the Group’s Net Debt stood at €48.1 million, up from €34.4 million at the end of 2024. This increase is mainly attributed to seasonality, which typically results in higher working capital requirements in the first quarter compared to the final quarter of each fiscal year. Nevertheless, the low level of Net Debt reflects the Group’s strong financial position, the quality of its customer portfolio, and its capacity to invest while maintaining low leverage.

More specifically, the following table depicts the key financial figures of the Group during the first quarter of 2025, compared to the corresponding period in 2024:

*The Adjusted EBITDA does not include non-recurring expenses amounting to €218, associated with the restructuring of subsidiary Don & Low LTD, specifically related to employee severance payments.

Prospects of the Group

As the second quarter of the year progresses, markets and economies exhibit characteristics largely consistent with those of the first quarter. Inflation remains stable, interest rates are unchanged, and raw material prices are declining—albeit with a lag—reflecting the persistently low demand. Additionally, energy costs are trending downward compared to Q1. In parallel, the recent crisis between Israel and Iran creates new conditions in that area, but also globally, while the level and duration of this crisis, as well as its potential impact in the economies and the market, remain unknown.

Given the limited time remaining in Q2 2025, it is not possible to provide a precise forecast for the Group’s operating profitability (EBITDA) for the quarter. However, at the time of this report’s preparation, it is estimated that the Group’s EBITDA for the first half of 2025 will be at levels comparable to or slightly lower than those of the first half of the previous year. This suggests that the deviation observed in Q1 was temporary and is expected to be largely offset in Q2, highlighting the Group’s resilience, increasing market share, and continued strong operating profitability.

Regarding full-year profitability for 2025, despite significant uncertainty surrounding the global economic outlook—particularly in Europe—and the potential global impact of U.S. tariff policies, as well as the impact of the recent crisis between Israel and Iran, the Group Management estimates that EBITDA for 2025 will exceed the previous year’s levels and may reach or surpass the operating profitability recorded in 2023 (EBITDA 2023: ~€44 million). Management continues to monitor market developments closely to ensure alignment with strategic objectives.

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