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According to the Interim Report by Management for the first three months of 2020, which has just been published, AD Plastik Group’s operating revenue amounted to HRK 362.6 million, representing an increase of 4.1 percent compared to the same period last year. Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) at the Group level amounted to HRK 62.7 million, representing an increase of 36.3 percent.
„We have made a safe step into this year and for most of this reporting period we operated in accordance with our plans and goals. All of us were faced with significant challenges caused by the spread of the COVID-19 virus, thus in the second half of March our customers were forced to temporarily stop their production facilities, and consequently – so did we. The stable financial position of the company makes it easier for us to bear the brunt of the crisis we have been facing, and we also use Government measures to ensure business sustainability“, said Marinko Došen, President of the Management Board of AD Plastik Group.
EBITDA margin amounted to 17.29 percent, and despite the negative impact of the weakening of the Russian ruble and Hungarian forint exchange rates, the Group’s net profit was slightly higher than last year in the observed period and amounted to HRK 28.2 million.
„At all Group’s sites, we undertake a range of activities to protect the health and safety of our employees. Although this situation is sure to change a lot, we have been constantly taking care of the sustainability of our business and we use this situation as an opportunity to learn and improve in all segments of our business. Our goal is to overcome crisis with as few consequences as possible and maintain our position as a quality and reliable partner. The vision and direction in which we want to develop are clear and we will not give up on that. The crisis will slow us down a bit, but it will certainly not stop us. I believe that we will succeed in this and in the long run justify the trust of all our stakeholders,“ said Marinko Došen.
It will certainly take some more time for the handshake to become the usual way of greeting again, but business operations need to be continued regardless of the circumstances. We will soon return to our workplaces and be in close proximity to our colleagues which is a great challenge in the time of the pandemic. With the joint efforts, we need to provide an environment where every employee will feel safe and comfortable.
AD Plastik Group has been intensely preparing to restart production at its factories, while taking primarily care of protecting the health of employees. Accordingly, we have prepared the ADP COVID-19 Protocol and a full set of instructions with detailed guidelines for the behavior and operation in new circumstances caused by the spread of coronavirus.
Implementing the prescribed measures requires adjusting workplaces and familiar work practices, but changes in familiar habits have become a necessity in life and business, at least for the foreseeable future.
Employee health and safety are at the forefront of our priorities, and by publishing this document we want to give all our stakeholders an insight into the measures we have been implementing.
The audited Integrated Annual Report of the AD Plastik Group for 2019, which has just been published, is a confirmation of the successful business operations of the Company in the last year, in which the results were achieved above the planned ones. Operating revenue grew by 16.7 percent compared to the previous year, amounting to more than HRK 1.5 billion. The Group’s net profit increased by 14.9 percent, amounting to HRK 102.6 million and EBITDA amounted to HRK 197.5 million, representing an increase of 22.1 percent.
“We have successfully been coping with the business challenges in the automotive market. The strategy we have been implementing, the vision, determination and soundness of business decisions have been successful. Unfortunately, the COVID-19 virus pandemic has put us all in front of brand new and unexpected challenges, and making plans has additionally been made difficult due to the uncertainty of the duration of this situation. In such circumstances, a stable financial position and good results achieved will certainly greatly help to continue our business operations and maintain stability,” said President of the Management Board Marinko Došen.
The growth trend of the AD Plastik Group is still above movements of the markets in which it operates, and despite a significant investment cycle, the growth of operating business has improved net financial debt ratios relative to EBITDA amounting to 2.23 at the Group level.
The ADPL share price increased by 8.5 percent in the reporting period and as of December 31, 2019, it amounted to HRK 191. According to the AD Plastik Group’s dividend policy and results achieved, a dividend of HRK 12.5 per share was paid out last year.
In addition to the financial results, the integrated report contains detailed information on social, environmental and economic impacts, Company and business risks management. The Company’s Sustainability Report is an integral part of the Integrated Annual Report, which provides a comprehensive overview of financial and non-financial performance indicators.
“The past year has been extremely challenging for our production sites, especially in Croatia. We have successfully started serial production regarding several new and very significant projects, thus filling the capacities in Croatia. Some of the most significant projects we have started are the Clio 5 and Ford Puma as well as the redesigned Twingo and Smart. We have sealed new deals worth EUR 157.9 million in the Russian market and EUR 57 million in the European market. This should significantly fill the capacities of our factories in Russia. Our ambitious plans and targets set for 2020 will undoubtedly be affected by the crisis caused by the COVID-19 virus pandemic. We have been undertaking a number of activities and safety and protection measures in order to preserve the health of our employees and the sustainability of our business in the first place. This situation will change a lot of things, but we will certainly do everything in our power to maintain our existing positions and thus justify the trust of all our stakeholders in these rather difficult times,” said Marinko Došen.
The Faculty of Economics in Split held a conference Business Sector for Climate-neutral Europe – How to Meet the Ambition with the Sustainable Development Goals and the Green Plan. The conference was organized by the UN Global Compact Network Croatia, the Faculty of Economics in Split, the European Documentation Center, the Croatian Employers’ Association and the European Economic and Social Committee. Apart from delegation of the European Economic and Social Committee, representatives of the business sector, state institutions and civil society, as well as invited experts in the field of climate change and sustainable development also gathered, and Tomislav Ćorić, Minister of Environment and Energy, participated in the introductory part.
As part of the conference, a panel “How does the business sector integrate sustainability goals into its operations” was held, where Marinko Došen, President of the Management Board of AD Plastik Group, described the company’s position in the market. “In order to function in the automotive industry, we must be qualified. We can only be that if we meet certain standards. The automotive industry has trends and fashion. Three basic trends are represented: safety, vehicle weight reduction and environmental impact. Vehicle weight reduction has an impact on reducing consumption, and a lot of attention is paid to the impact of materials on the environment. We have been constantly investing in the development of materials and the use of the best available technology regarding the construction of our plants and the management of work processes. In terms of materials research and development, the trend is to work with materials with less weight and better properties. We have pilot plants where we perform testing and research. Thanks to this approach, we achieve targeted savings of between 15 and 20 percent compared to conventional materials. We have strategically decided to apply the best available technologies when investing over HRK 200 million in two state-of-the-art robotic painting lines. Taking care of the environmental aspect, we have also built a small plant for waste gas treatment that is generated in the production process. In this way, we have greatly contributed to reducing the negative impact on the environment. All those our activities are covered in an important part of our strategy related to corporate social responsibility,” said Marinko Došen.
AD Plastik Group won the Green Frog Award 2019 for the best Sustainability Report, an award given by Deloitte Croatia for the fifth consecutive year. This year, the Croatian Employers’ Association and the Global Compact Network Croatia joined them as full partners in the selection process.
The award was taken on behalf of AD Plastik Group by Zoja Crnečki, Consultant for Relations with Government Institutions and Funds, who emphasized on this occasion: “Corporate Social Responsibility is a part of AD Plastik Group’s business model and one of the most important components of the company’s development policy. Social responsibility is embedded in all our business processes, which contributes to the realization of UNGC’s Sustainable Development Goals. We are delighted that our work and positive impact on the environment and society as a whole have been recognized and rewarded. ”
Introductory speeches were given by Ivana Turjak Čebohin, Director at Deloitte’s Audit Department and Head of the Green Frog Initiative as well as Vali Marszalek, Consultant for Sustainable Development and Corporate Social Responsibility at CEA and Executive Director of Global Compact Network Croatia.
“Awareness of social responsibility, environmental protection and human rights is becoming bigger and clearer. Such trends in the contemporary market have stimulated positive changes in Croatia, and the number of companies that have started publishing non-financial reports is increasing year by year. Non-financial reporting can bring numerous benefits to companies, both for reporting entities and for companies that are not legally obligated to do so,” said Ivana Turjak Čebohin.
The awards ceremony was held as part of the „Employment with Effect“ conference, which included a panel discussion of the same name on the topic of the employment of people with disabilities.
The continuation of successful operations and the realization of the planned growth of revenue and profit of the AD Plastik Group have been confirmed by the just-announced interim unaudited results for 2019. Operating revenue amounted to HRK 1.5 billion, representing an increase of 17.1 percent compared to the same period last year.
Revenue at the parent company increased by 17.3 percent, amounting to HRK 1.1 billion. Start of serial production of new vehicle models and tool sales regarding these vehicles have greatly influenced profitability growth, thus EBITDA of the Group amounted to HRK 194.8 million, recording an increase of 20.4 percent, while in the parent company it increased by 49.2 percent and amounted to HRK 121.1 million. The Group’s profit increased by 10.4 percent, amounting to HRK 98.6 million, and in the parent company the profit is slightly higher than last year’s, amounting to HRK 89.7 million.
„Despite the challenges in the automotive market, our results confirm the correctness of our vision, strategy and business decisions we make. The growth trend of our Group is still above the market trends in which we operate, which also shows that we have chosen a good direction of business development. The past year was extremeley challenging for our production sites, especially in Croatia. We have successfully started serial production regarding several new and very significant projects, the most notable of which are Clio 5 and Ford Puma as well as redesigned Twingo and Smart. We have filled production capacities in Croatia and new deals worth EUR 157.9 million, sealed for the Russian market, will significantly fill the capacities of our Russian production sites. In addition to the new deals sealed for the Russian market, new deals worth EUR 57 million have been sealed in the European market,“ said Marinko Došen, President of the Management Board of AD Plastik Group.
Despite the significant investment cycle, the growth of operating business has improved net financial debt ratios relative to EBITDA, amounting to 2.26 at the Group level.
„We have made a safe step into another business year that brings new challenges and opportunities, and I believe also the successful results. Preparations of our production sites in Russia for acceptance of new projects as well as production stabilization at Croatian production sites lay ahead of us. We have set ambitious plans and the goals and their realization requires a high level of focus from us. The results we have been achieving are an additional motivation and incentive, but at the same time an obligation and responsibility to all our stakeholders to continue in the direction of further growth and development of the Group,“ said Marinko Došen.
The ADPL share price increased by 8.5 percent in the reporting period and as of December 31, 2019, its price amounted to HRK 191. According to the AD Plastik Group’s dividend policy and results achieved, a dividend amounting to HRK 12.5 per share was paid last year.
AD Plastik Group has sealed new deals worth EUR 31.8 million for the Russian and European market. Additional deals worth EUR 22.4 million have been sealed in the Russian market for the Renault-Nissan-AvtoVAZ Alliance and the cooperation with the PSA Group has been continued in the European market by sealing new deals with a total value of EUR 9.4 million.
AD Plastik Togliatti factory in Russia will be producing absorbers and exterior pillar trims for the new model Lada Granta as well as front bumper lower grills for the new vehicle models Renault Logan and Sandero. These are additional deals for new Alliance vehicle models for which most of the deals have been sealed during 2019. The start of serial production of the mentioned vehicles is planned for the second and third quarters of 2021, and the estimated duration of the projects is eight years. The value of the deals sealed for the vehicle Lada Granta amounts to EUR 15.2 million, and for the new Renault models – EUR 7.2 million.
The new deals sealed with the PSA Group confirm the very successful status of the AD Plastik Group in the supplier panel of this reputable automaker. The AD Plastik Group factory in Mladenovac has sealed the deal on production of glass run channels for Opel Astra, the best-selling Opel vehicle, with a total value of EUR 5.8 million. The start of serial production is planned for the fourth quarter of 2021 with an estimated project duration of eight years. The factory in Solin will be producing exterior components, namely the upper grills, which will be installed on Fiat Ducato and Opel Vivaro, vehicles from the FCA and PSA Group. AD Plastik Group will be producing components for these commercial vehicles models for the first time, with a value of the deal sealed amounting to of EUR 2.2 million. The start of serial production is also planned for the fourth quarter of 2021 with an estimated project duration of two years. Factory in Solin will also be producing air extractors for Peugeot 308 and Opel Astra vehicles, with a project value of EUR 1.4 million. Start of the serial production of this project is planned for the first quarter of 2021, with an expected duration of seven years.
At the ceremony of the Zagreb Stock Exchange Awards in Zagreb, AD Plastik was presented with the Share of the Year award chosen by the public.
On behalf of the company award was accepted by Finance Director Josip Divić who said on this occasion: “It is an extreme honor and pleasure to receive this award and I want to thank everyone who voted for us. First of all, I would like to emphasize that this is a recognition to all employees of AD Plastik Group. The results achieved are the consequence of a joint effort of all our employees. We are delighted by this award for a number of reasons, most notably because it comes from the general public, which recognized us among the fierce competition. We strive and work hard and this has been recognized in the market, and despite the record operating revenue we generated last year, we expect to exceed that result by the end of the year. For us, this was a very intense business year in which the serial production of large projects, the new Twingo and Smart, the Clio 5 and Ford Puma, began. Apart from that, since the beginning of the year, we have sealed new deals amounting to EUR 215 million that will enable us to continue our stable operations in the future. The award we have received is a confirmation of successful work, and I can only promise that it will not slow us down or make us lazy, in fact, it will only be an additional incentive for us to be even better.”
Award Committee of the Zagreb Stock Exchange decided on awards in a total of seven categories, considering objective, statistical criteria, but also the overall contribution to the education and development of the domestic capital market. The guests and the awardees were greeted by Ivana Gažić, President of the Management Board of the Zagreb Stock Exchange, who expressed her satisfaction that this awards ceremony has become a traditional event aimed at continuous identification and rewarding positive examples in our market. In the introductory part, the guests were addressed by Darko Horvat, Minister of Economy, Entrepreneurship and Crafts and Ante Žigman, President of the Governing Board of HANFA.
Despite numerous examples of women successfully managing even the largest companies in the world, especially in difficult economic times, their share in the total of senior and high-level management is rather modest. For this very reason, having organized the ninth Women in Business Conference and already the fifteenth selection of the most powerful women, Leader wanted to highlight successful experiences. This conference brings together business women, female owners, directors and managers of companies in Croatia, the region and beyond. This was precisely the desire of the organizers as well as to motivate women to take up new business ventures and to encourage the initiative to increase the representation of women in senior positions.
Two roundtables were also held as part of the conference, attended by women from different fields, in order to express their opinions on current topics of rights, positions, interests and requirements they face in business. The first round table entitled Extra Mile – Lifelong Learning was attended by Katija Klepo, Member of the Management Board of AD Plastik Group, who emphasized on this occasion:
“I am a member of the Management Board of AD Plastik Group, which is an automotive components supplier. The public perception is that it is mostly a men’s industry, but we employ almost equal number of men and women. We operate in five countries – except Croatia, we have factories in Russia, Hungary, Serbia and Romania and our trends are the same everywhere. The fact is that we live in very dynamic time and lifelong learning is a necessity, we must constantly keep improving our knowledge. In addition to business and private commitments, sometimes it’s not easy to fit it into a schedule, but it’s an investment in yourself and your future. Sometimes we have too little time for ourselves, but it is a matter of every woman’s choice so we accept the challenges and simply live them.” ne
CSR Index Awards were presented for the 12th time at the annual corporate social responsibility conference. The awards are given to companies for the best achievements in corporate social responsibility, and they are organized by the Croatian Business Council for Sustainable Development (HR BCSD) and the Croatian Chamber of Economy. Companies have been awarded in nine categories and more than one hundred have competed this year. AD Plastik won the award in the in the category of large companies again this year.
“We are proud that our continuous work and progress have been recognized by the professional public and I hereby thank for the award. First of all, I want to thank all of our employees who have most of the credit for the fact that social responsibility is part of our day-to-day business.” said Marinko Došen, president of the Management Board of AD Plastik Group, while receiving this significant recognition.
The central theme of this year’s conference was climate and climate change. Minister of Foreign and European Affairs Gordan Grlić Radman praised the efforts of HR BCSD and the CCE to contribute, through concrete activities, to achieving the sustainable development goals as effectively as possible under the 2030 Agenda.
Participating in the panel discussion, Marinko Došen emphasized the fact that the number of cars in the world has been constantly increasing and that despite new trends, the automotive industry is aware of its impact and is constantly taking various measures to reduce its negative impact on the environment. “This approach is imperative in the automotive industry. You really cannot be on the automotive supplier panel, whether you are a Tier 1 or Tier 2 supplier, unless you have a clear sustainability strategy and goals. We are also obliged to influence our suppliers, to choose them according to these principles and to exercise regular control,” Došen pointed out.
Došen emphasized that corporate social responsibility is an absolute choice of AD Plastik Group and a part of all business processes. “By researching and developing new materials, we reduce the weight of the components we produce and consequently the weight of the vehicle. We care about the emissions of gases generated in our production processes using state-of-the-art technologies according to the highest EU standards. We use recycled materials increasingly in the production itself. We have introduced a model of chemical leasing, taking care in this manner of the entire life cycle of a chemical or solvent. We dispose of the waste solvents from our painting production process to an authorized waste disposal company which regenerates the waste solvent and returns it back to the process for use. In cooperation with our customers, we have been working on reducing the amount of packaging waste, so the packaging of our products is mostly returnable,” Marinko Došen emphasized, and as an additional indicator of quality and social responsibility, he pointed out the various certificates that all production sites, where AD Plastik Group has its factories, obtain, starting with IATF 16949, to ISO 14001, ISO 45001, ISO 50001, ISO 27001.
The CSR Index enables companies to objectively manage, monitor, measure and interpret their own specific impacts. Using this tool, it is more visible for the companies what is being done well regarding their stakeholders and compared to other companies, and potential areas for improvement are indicated. In order to ensure their own sustainability and development, companies in all aspects of their business and in all relationships must show continuously good results.