The business results of AD Plastik Group for the first quarter of 2022 have been published, period marked by the effects of the Russian-Ukrainian crisis. The Group’s operating revenue decreased by 23 percent compared to the same period of 2021 and amounted to HRK 251.8 million. EBITDA amounted to HRK 24.7 million and was lower by 52.9 percent, while net profit was lower by 97.9 percent and amounted to HRK 0.6 million.

“Challenges related to the lack of semiconductors have continued in this year too, and new circumstances and challenges directly affect the realization of our factories in Russia. Car manufacturers in that market have stopped their production activities and, although our factories are ready to resume production, at the moment it is impossible to accurately predict when production in Russia will restart. At the same time our European factories have been working according to plans even though, due to the lack of semiconductors, production capacities of some customers are still somewhat reduced”, said Marinko Došen, President of the Management Board of AD Plastik Group.

Despite the uncertainties and very demanding circumstances in the market, development activities of car manufactures have been running unhindered, with the expected disruptions in the Russian market. A good indicator in the European market are very intensive commercial activities too, which is also supported by the new deals of the AD Plastik Group worth EUR 91.7 million sealed in the first three months of 2022, of which 73.6 million in the EU market.

“Our primary task in the upcoming period is to preserve financial stability as well as business sustainability and reduce negative impacts. We are focused on the realization of existing projects and expanding the portfolio of development and production projects, in order to strengthen our position as a development supplier in the European market. We have been intensively monitoring the evolving situation and are ready for various scenarios, depending on its further development and circumstances. We are aware that there is a very demanding period ahead, but we are also sure that we will once again show and confirm our resilience and proceed to conduct stable business in the long run”, said Marinko Došen.

AD Plastik Group has published the Integrated Annual Report for 2021, which contains all relevant information on the company’s activities and business operations, audited financial statements and sustainability indicators according to GRI standards.

The Group’s operating revenue for 2021 amounted to HRK 1.1 billion and was by 7.6 percent lower than a year earlier. EBITDA amounted to HRK 125.3 million and was lower by 24.5 percent, while net profit amounted to HRK 32.7 million and was lower by 30.3 percent.

“Although the very beginning of the year had positive signs and indicated a market recovery, the global crisis of the lack of semiconductors has significantly affected the sales of new cars. Namely, due to the crisis, car manufacturers failed to meet the needs of the market and deliver the required quantities. Disruptions in production processes have affected the entire supply chain, including our business too. Unlike production, sales and project activities have been proceeding unhindered, so in 2021 we sealed new deals worth more than EUR 150 million. We have also sealed deals on several very important development projects, thus strengthening our position as a development supplier,” said Marinko Došen, President of the Management Board of AD Plastik Group.

In addition to disruptions in the supply chain, last year was marked also by a significant increase in the prices of materials, raw materials, transport and energy sources. By open price calculation and alignment with most of its customers, the impact on Group’s business has been reduced. Reduced production and lack of vehicles have affected the expected trends in the number of newly registered cars, while the development activities of car manufacturers are in full swing.

Despite all the challenges in the market, AD Plastik Group continuously meets very high standards of sustainability in all aspects of its business. Corporate social responsibility is one of the basic determinants by which the company is guided in the development of its strategy, policies, plans and activities. Continuous development and improvement of corporate culture and raising quality standards in all business segments are a common business model. Despite an extremely demanding and challenging year, communication with key stakeholders was regular and with no interruptions. The care for employees, customers, suppliers and shareholders has not been neglected at any time and improvements have been continuously worked on.

The non-financial part of the fifth Integrated Report of the AD Plastik Group has been verified by HR BCSD, whose opinion, among other things, states: ” The first part of the Integrated Report pointed to successful business operations in turbulent times and a stable organization that has been successfully adapting to changes in market conditions. In the second part of the report, AD Plastik Group showed us how it manages its impacts in terms of sustainability topics, how it determines their materiality and how it plans new improvements in the next business year based on monitoring and measurements. This report shows progress, both in reporting practices as well as in the practices of managing material impacts in the field of sustainability. A lot of effort invested in reducing negative impacts and progress regarding almost all material topics is visible. We hope that this trend in the AD Plastik Group will continue.”

In addition to the abovementioned challenges that are continued also in this year, the global economy has been facing a new crisis and uncertainties it brings.

“During the preparation of this report we have been facing another unexpected situation. The Russian-Ukrainian crisis is a new challenge for the global economy and our business. Given the uncertainties, we are aware of another very difficult and challenging period ahead. We are primarily focused on preserving financial stability and business sustainability, and reducing negative impacts on business. At the same time, we have been sealing new deals in the European market, realizing contracted projects and continuing development activities. Despite the uncertainties, we are confident in the survival and long-term development of AD Plastik Group”, said Marinko Došen.

Sales Director for the EU and other markets Toni Štambuk gave a guest lecture at the Faculty of Economics in Split. The lecture on Business Communication in Foreign Trade – the example of the company AD Plastik, held as part of the course Foreign Trade Business, attracted the attention of students who were particularly interested in examples and advice from practice. The same lecture was held digitally for students of the Faculty of Economics in Zagreb.

The Management Board of AD Plastik Group has signed a new Collective Agreement for 2022, pursuant to which the existing social and material rights of employees of AD Plastik d.d. have been retained at a high level. The agreement has been concluded for a period of one year and applies to all employees in Croatia.

Employees are undoubtedly the most important stakeholders of the company and the basic premise of its successful development, and in exceptionally challenging circumstances, additional mutual understanding and responsibility have been shown.