The just published financial results of AD Plastik Group for the first quarter of 2021 are expected and they confirm the financial stability and profitability of the company in the very demanding and challenging circumstances of the corona crisis.

Operating revenue amounted to HRK 327.21 million, EBITDA amounted to HRK 52.32 million, and net profit amounted to HRK 25.84 million at the Group level.

All indicators decreased compared to the first quarter of last year, but it should be noted that the company in the first quarter of 2020 continued to record revenue growth, despite the onset of the pandemic and a significant decline in the automotive market.

“In the first two months of 2020, our factories achieved record results, and the beginning of the pandemic and the consequences it caused unexpectedly changed the situation. Nevertheless, we ended the first quarter of 2020 with revenue growth, which was also contributed by one-time positive impacts in that period, so we can say that this was almost the last pre-pandemic reporting period. Although the automotive industry, like the global economy as a whole, has been facing a number of challenges and uncertainties, moderate positive market indicators are evident. Our risk management strategy through market dispersion has proven to be effective, which is evident also in our results. The Russian car market was the least affected by the crisis, so our factories in Russia recorded revenue growth of 15.5 percent in this period,” said the President of the Management Board of AD Plastik Group, Marinko Došen.

The markets in which the company operates show signs of a moderate recovery regarding the number of newly registered vehicles, which was evident in the results of the previous quarter, although the production of new vehicles in the European market has been somewhat slowed due to the shortages of semiconductors. Like the global economy as a whole, the automotive industry has been facing the consequences of the crisis, and market stabilization is expected in the second half of the year. The price of the ADPL share increased by 13.8 percent in the first quarter, compared to the end of last year, and a dividend from retained earnings of HRK 8 was paid in March.

“We have preserved financial stability, which allows us to deal more easily with the consequences of the crisis, and in addition to protecting the health and safety of employees, this is our primary goal also in the coming period. We monitor trends and influences in the market and adequately adapt to them, and we have strengthened our position as a quality and reliable partner. We continue our development and sales activities uninterruptedly, and 43 previously contracted projects in the European and Russian markets are currently ongoing. New deals are also being sealed, by which our portfolio of future deals offers a stable and secure perspective. We have adapted our plans to the circumstances, so our goals for 2021 are more conservative, but I believe they are achievable,” said Marinko Došen.

The Integrated Annual Report of the AD Plastik Group for 2020 has been published, containing relevant information on the company’s activities and business operations, revised financial results and sustainability indicators according to GRI standards.

The Group’s operating revenue amounted to HRK 1.2 billion and recorded a decrease of 20.9 percent compared to the record 2019. This is a consequence of the impact of the crisis, but the results achieved are better than the first predictions at the beginning of the pandemic. The Group’s EBITDA amounted to HRK 165.9 million and recorded a decrease by 16 percent. Serial production of new vehicle models started in 2019 and the sale of non-operating assets had a positive impact on EBITDA. Net profit of HRK 46.9 million was generated, and net financial debt was reduced by HRK 104.6 million.

“The past year was marked by pandemic that caused a global crisis in all segments, so it also affected the business of our company. Despite the very demanding circumstances and challenges, we are satisfied with the results achieved and they are still above the original predictions announced at the beginning of the pandemic. Like most industries, the automotive industry has been severely affected by the crisis, but the development of new vehicle models and plans for the future have not been stopped at any point. This fact is supported by the EUR 130.6 million of new deals selaed in the past year,” said Marinko Došen, President of the Management Board of AD Plastik Group.

AD Plastik Group meets very high standards of sustainability in economic, but also social and environmental topics that are incorporated into all elements and processes of business and management. In the past year, special emphasis was placed on protecting the health and safety of employees, but also on preserving job positions. At the same time, other indicators of sustainable business were applied and improved, which was a special challenge given the circumstances and structure of the company.

The non-financial part of the fourth in a row  Integrated Report of AD Plastik Group has been verified by HR BCSD, whose opinion, among other things, states: “AD Plastik Group is an example of a business organization with many years of application of social responsibility and focus on sustainable development, and we believe that namely this strategic commitment has brought benefits in crisis situations, and enabled rapid adjustment and recovery. The Integrated Report for 2020 has again met expectations, both from the point of view of the exhaustiveness of the content as well as from the point of view of year-over-year-growth in relation with clarity and transparency of presentation of indicators and other supporting information. The report illustrates quality and responsibility that is in line with the reputation of the company which is a leading manufacturer of components for the automotive industry in this part of Europe.“

Based on market indicators in the last quarter of 2020, which gave reasons for moderate optimism, the report also includes the company’s targets for 2021, which indicate a slight increase in operating revenue.

“In the circumstances in which we operate, caution is necessary because the pandemic is still ongoing and its course is affecting the overall economic picture. Although the number of newly registered vehicles is expected to grow in the markets where we operate, our plans are more conservative, but we believe they are also achievable. It will take some time for the market to fully stabilize and return to pre-crisis figures, but signs of recovery are gradually emerging. In the most difficult moments, we have shown the necessary knowledge, competencies and quality, and I believe that we have justified the trust of our stakeholders, and we will continue to move on in this direction in the future,” said Marinko Došen.

Despite the circumstances and much more modest activities, ADP Day made our employees smile at all production sites. Landscaping, planting flowers and dividing seedlings marked the company day, but also Earth Day. Congratulations to all the ADP employees and we hope for a soon gatherings without any restrictions.