Financial results for the first quarter of 2022

CONSOLIDATED FINANCIAL RESULTS (in € thous.)

On demand level, the following were observed during the first quarter of 2022:

• Stable demand for products in the construction sector.
• Stable demand for products in the infrastructure and large-scale construction projects.
• Stable demand for agricultural products with the exception of fertilizer packaging products.
• Stable demand for products related to the packaging sector with fluctuations per individual segment of activity.
• Significant decline in demand, as it was expected, for personal protection products related to the pandemic.
• Cost of raw materials maintained at high level, while in individual cases there have been additional increases depending on the type of raw material and the geographic region.
• Significantly higher energy costs, and notably higher compared to the already increased costs seen in the last months of 2021, in all countries of activity of the Group.
• Significantly higher transportation costs with incidents of very limited containers’ availability.
• Significantly increased cost of auxiliary materials as well as packaging materials.

Assessing the impact of the pandemic in the future and prospects of the Group                                                                                                                                  

Regarding the outlook for the remaining months of the year, the Management closely monitors the global macroeconomic developments which are mainly characterized by significantly higher inflationary pressures across the entire economy but also in all cost categories when it comes to industrial production. It also closely observes the developments of the ongoing Russia - Ukraine war which continues to affect the broader economic environment.

As far as the second quarter of 2022 is concerned, the Management remains optimistic anticipating a satisfactory performance for the Group, taking into account the backdrop of the conditions prevailing currently in the market. Specifically, the Group targets Earnings before Taxes of € 9 mil., coming from the traditional product portfolio, which means targeting an increase of approximately 140% compared to the second quarter of 2019, but implying a drop by 72% compared to the second quarter of 2021, as expected, due to lack of demand for products related to the pandemic.

In relation to the performance of the Group for the entire year 2022, the especially difficult and volatile macroeconomic environment, the high inflation pressures and the ongoing outcome of the war conflict generates difficulties in developing solid forecasts for the year, due to the limited visibility when it comes to financial results and level of demand for the second half of the year. The Group targets for the current year 2022, based on its budget, Earnings before Taxes of more than € 25 mil. coming from the traditional product portfolio and the Group's Management is working towards this objective.

It is noted that the Board of Directors will propose to the upcoming Annual General Meeting of Shareholders the distribution of dividend totaling € 11.75 mil. Provided that the Annual General Meeting approves the distribution of the dividend, given that the Company has already distributed an interim dividend of € 4.75 mil., the remaining amount of € 7 mil. (gross amount), i.e. 0.1600312674 Euros per share (gross amount), will be distributed and will be increased by the amount corresponding to the treasury shares held by the Company at the cut-off date of the dividend.

With regard to the financial results, Mr. Dimitris Malamos, Chief Executive Officer of the Group, commented: “Although operating in an extremely difficult environment with intense conditions of uncertainty, the Group has so far effectively managed the high costs of raw materials, energy and transportation, and therefore the above objectives both for the second quarter and for the entire year of 2022 are attainable, provided that there is no deterioration in macroeconomic conditions, in the levels of availability of raw materials and energy, and provided also that the level of demand remains at current levels and there are no other factors that will create additional hardships in the market.”

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.