Financial results for the first half of 2024

ΤHRACE PLASTICS CO S.A.

18.9.2024

FINANCIAL RESULTS OF FIRST HALF OF 2024

Increased Sales of €186.5 mil. with a 3.5% increase

and improved EBITDA of €24.5 mil.

ATHEX:                PLAT

Reuters:               THRr.AT

Bloomberg:        PLAT GA

First Half of 2024 Highlights:

• Volumes sold: Increase of 9.1%
• Turnover: €186.5 mil., increase of 3.5%
• EBITDA: €24.5 mil., increase of 1.9%
• Net Debt: €25.3 mil.
• Smooth implementation of the annual investment plan of €30 mil. for 2024

THRACE GROUP announces the financial results for the first half of 2024.

First half of 2024 Financial Results

In the first half of 2024, the Group's Turnover amounted to €186.5 mil., compared to sales of €180.1 mil. in the corresponding period of 2023, posting an increase of 3.5%, mainly due to the increase in volumes sold by 9.1%.

During the first half of 2024, EBITDA amounted to €24.5 mil., increased by 1.9%, compared to an EBITDA level of €24.1 mil. in the first half of 2023. It is important to highlight that the Group increased the volumes sold, thus capturing greater market shares, despite the relatively low demand, fully offsetting the effect of the declining average selling prices and the higher comparative costs across the various categories of expenses.

Regarding the liquidity levels of the Group, there was no negative impact or change during the first half of the year. More specifically, the Group’s Net Debt amounted to €25.3 mil., posting an increase compared to the end of 2023 (Net Debt at the end of 2023 including the time deposits: €16.3 mil.), due to (a) the seasonality of sales, which resulted into higher working capital needs, (b) the distribution of dividend to the shareholders and (c) the cash outflows related to the implementation of the Group’s investment plan. The significantly low level of Net Debt demonstrates the strong financial position of the Group, the quality of its customer base, as well as the Group’s ability to continue implementing investments while keeping its Net Debt at a relatively low level.   

At the same time, the Group's investment plan implementation, amounting to €30 mil. on a cash basis, progresses smoothly, by investing mainly in the Group's production facilities in Greece and abroad with regards to both business segments.   

More specifically, the following table depicts the key financial figures of the Group during the first half of 2024 compared to first half of 2023:

Prospects of the Group

Regarding the prospects for the year 2024, for the 9-month period of 2024 the Group's Management estimates that EBITDA will emerge relatively stable versus the corresponding level of the same period of 2023, in absolute numbers.

At the start of the second half of the year 2024, both markets and economies have been characterized by trends and conditions which are relatively comparable to the ones of the first half. Inflation has shown signs of cautious deceleration, interest rates are still increasing, although there have already been the first cuts by Central banks, whereas prices of raw and auxiliary materials remain at relatively high levels despite conditions of low demand. However, the escalating tension in the Middle East and the absence of a ceasefire continues to create uncertainty and to put pressures on the markets. At the same time, in the third quarter, there are significant increases in energy costs, especially in Southeast Europe.

With regard to the Group's annual profitability for the year 2024, the Management had estimated that, despite the high uncertainty about the course of the global economy and of Europe in particular, the Group’s EBITDA profitability for the year 2024 would fluctuate at higher levels than the previous year. However, even if the Company does not revise its initial annual targets, the crisis in the Middle East and the general geopolitical instability, create new conditions of uncertainty, the effects of which are impossible to determine at the present time. Therefore any estimate in terms of the Group’s annual profitability is highly precarious, while the Group’s Management is monitoring the market developments with the aim to be able to implement the necessary actions, in order not to deviate from its plan.   

Regarding the financial performance of the first half of 2024, Mr. Dimitris Malamos, Group CEO, stated: "The first half of 2024 was undoubtedly strong for the Group, achieving growth in volumes, sales and operating profitability. It is worth mentioning that the above performance is achieved within conditions of uncertainty, low demand, especially in Europe, and increased costs. The next months of the year are clearly affected by the same difficult parameters, as in particular European markets face stagnant and recessionary conditions. In Thrace Group, we keep working to achieve the best possible outcome, while remaining committed to our broader strategic planning."

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