ATHEX: PLAT
Reuters: THRr.AT
Bloomberg: PLAT GA
The purpose of the current release is to present the Group’s financial results for the fiscal year 2018 and to highlight the basic factors that contributed to such.
The major developments of the year are highlighted as following:
§ The Group’s sales volume remained in the same levels with the year 2017 settling at 121.9 thousand tons. Specifically, the sales volume in Technical Fabrics B.U. reached 93.5 thousand tons in 2018 versus 96.3 thousand tons in 2017 (-2.9%) and in the Packaging B.U. it settled at 34.5 thousand tons in 2018 versus 30.7 thousand tons in 2017 (+12.4%). The drop in the sales volume of the Technical Fabrics Unit was mainly due to the reorganization of the subsidiary company Thrace Nonwovens & Geosynthetics with the aim to optimize the production process and assist the company’s exit from loss-making markets.
§ The consolidated turnover for the year 2018 reached €322.7 million versus € 318.5 million in 2017 (+1.3%). The turnover growth was attributed to the Packaging B.U. which posted an increase by 9.5%, whereas the Technical Fabrics Unit posted a drop of 1.5% for the reasons mentioned above.
§ The consolidated Gross Profit declined by 5.5% and settled at € 63.2 million compared to € 66.9 million in 2017. The drop was due to the following factors:
- Raw material prices continued their upward trend. Specifically, polypropylene prices increased by 9.3% since the start of 2017, with the 12-month moving average increase settled at 6.2%. Although the Group’s subsidiaries proceeded with corresponding increases in the final sale prices, the time lag observed as well as the inability to transfer the entire increase into the final sales price, had a negative effect on the consolidated Gross Profit.
- The Group’s subsidiary in Scotland has been affected by the BREXIT since the EUR/GBP rate has resulted into an incremental increase in the raw material prices, which is not feasible to be transferred into the final sales price. In addition, the uncertainty that is observed in the market due to BREXIT has also resulted into a lower demand for certain products and to a stronger competition in the market of the United Kingdom.
- There has been a significant increase in the energy cost in several subsidiaries of the Group and mainly in the subsidiaries of Scotland and Bulgaria.
- There have been also higher production costs in the subsidiaries of Scotland and USA as during the year 2018 the Group implemented new investments aiming at a higher production capacity and the decrease of production cost in the particular companies.
§ The consolidated EBITDA for the year 2018 amounted to €27.5 million compared to € 30.1 million in 2017 decreased by 8.7%. Apart from the reasons mentioned above, the consolidated EBITDA were affected by non-recurring expenses of € 1.5 million which emerged within the year 2018 and were not part of the ordinary business activity of the Group. Specifically the non-recurring expenses for the year 2018 are being analyzed as following:
a) An amount of € 686 thousand concerned an extraordinary expense in relation to a decision of the High Court of England, according to which the pension plans of the United Kingdom with Guaranteed Minimum Pensions (GMP) should be readjusted in order their provisions are equivalent as far as male and female employees are concerned.
b) An amount of € 800 thousand which concerns the internal reorganization of the companies Thrace Nonwovens & Geosynthetics SA and EL.VIS. SA.
§ The adjusted consolidated EBITDA for the year 2018 amounted to € 29 million posting a drop of 3.8 versus the year 2017.
Specifically, the major results of the Group for the financial year 2018 compared to the year 2017 settled as follows:
(amounts in € million) |
2018 |
2017 |
% Change |
Consolidated Turnover |
322.7 |
318.5 |
+1.3% |
Consolidated Gross Profit |
63.2 |
66.9 |
-5.5% |
Consolidated ΕΒΙΤ* |
13.7 |
17.2 |
-20.3% |
Consolidated EBITDA* |
27.5 |
30.1 |
-8.7% |
Adjusted Consolidated EBITDA* |
28.9 |
30.1 |
-3.8% |
Consolidated EBT |
10.0 |
13.8 |
-27.7% |
Adjusted EBT |
11.5 |
13.8 |
-16.9% |
Consolidated EATAM |
7.7 |
10.6 |
-26.8% |
Basic Earnings per share (in €) |
0.1765 |
0.2412 |
-26.8% |
The total Equity on 31.12.2018 amounted to € 141.6 million compared to € 137.5 million on 31.12.2017 with the Net Bank Debt standing at € 78.3 million compared to € 57.8 million on 31.12.2017. The ratio Net Bank Debt / Total Equity settled at 0.55x compared to 0.42x on 31.12.2017.
Prospects and Outlook of the Group for the Financial Year 2019
The uncertainty prevailing in the broader macroeconomic and financial environment along with the volatile business environment mainly in Europe, in conjunction with the repercussions from a potential exit of the UK from the European Union, comprise risk factors which in turn do not allow the Group to make any safe estimates or projections about the future. Of course the Group evaluates and assesses these risks on a constant basis. Specifically regarding Brexit, the Group cannot at this stage estimate with certainty any potential effect on its financial statements. In any case the Management assesses on a constant basis all elements in order to ensure that it takes the proper measures and proceeds with the respective actions towards the minimization of any negative impact on the Group’s business activities due to the above mentioned event.
The maintenance of a healthy financial structure for the Group, despite the extended 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 achievement of its strategic goals. For the fiscal year 2019, the Group’s Management estimates that the growth course will continue via an increase in the sales volume and turnover, whereas the profitability of the Group is expected slightly improved as compared to the year 2018. However the above estimates might be affected by a major international event or development.
* 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.
Adjusted EBITDA (the adjusted figure of operating earnings before financial and investment activities, depreciation / amortization, impairments and taxes)
The Adjusted EBITDA equals with the EBITDA figure from which the restructuring costs, merger and acquisitions costs and other non-recurring expenses have been deducted.