AD Plastik Group successfully closed the first quarter of 2025, confirming the resilience of its business model and the sustainability of its strategic development in challenging market conditions. Despite the expected lower operating revenue, it achieved growth in profitability and further strengthened its financial stability.

The total operating revenue of the Group for the reporting period amounts to EUR 35.21 million, which is a decrease of 16.9 percent compared to the same period last year, primarily due to lower revenue from tool sales. At the same time, the growth in revenue from serial production and better capacity utilization are the result of previous investments and successful new projects, the effects of which are becoming more evident. The Group’s EBITDA increased by 19.3 percent to EUR 4.40 million, while net profit grew by an impressive 271.1 percent, reaching EUR 3.96 million.

“We started the year in a highly dynamic and demanding environment, but the achieved results confirm that we have laid a solid foundation for sustainable growth. Strengthening financial stability, profitability growth, and new deals worth EUR 126.8 million confirm our competitiveness and clearly focused development. We continue to approach our business responsibly and thoughtfully, with a realistic dose of optimism based on our own capacities and past achievements. The combination of strong foundations, management determination, and a clear vision for the future gives us reason for moderate optimism,” said Marinko Došen, President of the Management Board of AD Plastik Group.

In the first quarter, a significant new contract for the European market was successfully concluded, further confirming the company’s market position, while parallel activities intensified in the development and making quotations for new projects. The continued deleveraging and restructuring of a portion of financial liabilities further strengthened the financial position, opening up space for further operational progress and development activities without increased pressure on liquidity.

Despite geopolitical tensions and changing market conditions, AD Plastik Group remains focused on disciplined management and the gradual strengthening of the development perspective, with continuous adaptation to the challenges of the global market.

The achieved results and newly sealed deals provide a solid foundation for continued stable operations and sustainable growth. They confirm that dedication to strategic goals and the ability to timely adapt to market challenges bring concrete results and long-term value. With a clear focus on profitability, financial stability, and the development of new projects, AD Plastik Group remains strongly positioned for further expansion in the European market.

AD Plastik Group has published its Integrated Annual Report for 2024, the first report prepared in accordance with the new European Sustainability Reporting Standards (ESRS). This further confirms the commitment to transparency, responsible business practices, and progress in aligning with the latest European Union regulatory framework. An independent auditing firm issued a positive opinion on compliance with the requirements of the European Delegated Act, making AD Plastik Group one of the first Croatian companies to successfully pass the reporting audit according to the new standards.

During the reporting period, the Group made a significant step forward, reaching operating revenue of EUR 152.44 million, representing a 17.9 percent increase compared to the previous year. EBITDA increased by an impressive 86.0 percent, reaching EUR 13.41 million, while net profit amounted to EUR 2.13 million. In addition to a strong operational recovery, the Group further reduced its debt level, thereby creating a solid foundation for future growth.

“Although current global trends – from the slowdown in electric vehicle sales to regulatory and tariff pressures – continue to introduce a new level of uncertainty in the automotive industry, we remain firmly focused on strategic development, innovation, and expansion in the European market. During the reporting period, new deals worth EUR 54.8 million were sealed, and the beginning of 2025 was marked by the conclusion of a significant contract worth EUR 126.8 million with a new customer in the European market. The total value of newly contracted projects in the last two years is almost EUR 300 million, which confirms the long-term sustainability and market relevance of our business model,“ said Marinko Došen, President of the Management Board of AD Plastik Group. 

This year’s report not only ensures regulatory compliance but also demonstrates concrete progress in sustainability reporting, including an in-depth materiality analysis, stakeholder engagement, and consistent integration of ESG goals into the business strategy. Comparison with the previous year confirms significant improvements in transparency, data quality, and reporting methodology.

Numerous sustainability indicators show positive developments, such as a remarkable 101.5 percent increase in the amount of recycled waste, a 46 percent increase in the share of recycled materials in products, and a 22.3 percent reduction in the workplace injury rate. These advancements are the result of continuous and targeted investments, process optimization, and ongoing improvements to the working environment.

“The financial indicators clearly reflect the stability we have achieved. In addition to profit generated, revenue growth, and a strong increase in operational efficiency, we have further reduced debt and consolidated the Group’s financial position. This has provided a solid foundation for resilience, flexibility, and continued growth in line with the challenges ahead—as well as the ambitions we strive for,” concluded Došen.

AD Plastik Group has published the unaudited financial report for 2024, confirming strong revenue growth and business stabilization. The achieved results clearly indicate the strengthening of the company’s market position and the establishment of solid foundations for sustainable growth in the future.

The Group’s operating revenue amounted to EUR 152.96 million, an increase of 18.2 percent compared to the previous year. At the same time, EBITDA grew by 83.2 percent, reaching EUR 13.21 million, while net profit amounted to EUR 2.15 million.

The achieved results reflect the realization of new projects, optimization of business processes, and increased capacity utilization. The new projects have proven to be a key driver of revenue growth, and their further realization is expected to positively impact business results in 2025 and in the coming periods, with additional increases in capacity utilization and profitability. It is anticipated that the serial production of the project, which starts this year, will further improve the operational and financial efficiency of the company.

“Behind us is a year of stable growth, strategic advancements, and adaptations in a dynamic business environment. Despite macroeconomic challenges and uncertainties in the global automotive market, we have achieved a notable business result that confirms the success of our strategy focused on growth and business optimization. We are particularly pleased by the fact that our key market breakthroughs are already visible. During the reporting period, new deals worth EUR 54.8 million were sealed, and the beginning of 2025 was marked by the signing of a significant contract worth EUR 126.8 million with a new customer in the European market. This gives us a strong foundation for further growth and business stability,” said Marinko Došen, President of the Management Board of AD Plastik Group.  

Project and industrialization activities were among the key priorities for the company in 2024, and their successful realization had a significant impact on business results. Although investments were substantial due to the launch of new projects, collection of tooling payments and positive operational cash flow allowed for significant deleveraging. At the same time, sales activities were very dynamic, with an emphasis on the European market and a steady inflow of new contracts.

The automotive industry is undergoing a period of significant changes, with market trends clearly indicating the need to adapt to purchasing habits. At the same time, regulatory changes and macroeconomic uncertainty require additional flexibility in business operations. “We are stepping into 2025 prepared for further growth, strengthening our competitive position and creating sustainable value for all stakeholders. In times of dynamic change, our focus remains on delivering quality and reliable solutions that meet the high standards of our customers and the increasingly demanding market. We continue to build our position as a reliable partner, ready for the challenges and opportunities that the future holds“, Došen concluded.

AD Plastik is the winner of the prestigious Platinum Key award, presented as part of the 20th anniversary celebration of the Croatian Exporters Association at the Croatian State Archives in Zagreb. The Platinum Key award is a special recognition given to exporters with proven success and continuity in excellence over the past ten years, or the entire seventeen years since the establishment of the traditional Golden Key award for exporters. Over these seventeen years, AD Plastik has been awarded a total of thirteen Golden Keys.

 “This award primarily reflects our team’s long-term work, dedication, contributions, and successes. Above all, I want to thank all our employees whose dedication, innovation, and persistence form the foundation of our success. Aware of the importance we hold as exporters, this recognition serves as an additional incentive for us to remain committed to the goal of further growth and excellence. Export is a key driver of economic growth, stability, and progress in Croatia, and we are aware of the responsibility we bear as exporters – not only to our business partners and customers but also to the Croatian economy. Through our operations, we contribute to strengthening the domestic industry, creating new jobs, and enhancing Croatia’s competitiveness in the global market. We will continue to do so, and I thank the Croatian Exporters Association for this recognition, which confirms that continuous work and progress are always recognized,” stated Marinko Došen, President of Management Board of AD Plastik Group.

AD Plastik Group has been one of the leading Croatian export companies for many years, continuously investing in development and innovation to ensure the excellence of its products in the international market. The Croatian Exporters Association was established in 2004 and has since been dedicated to representing the interests of Croatian exporters, collaborating with relevant institutions, organizing educational programs and events, and raising awareness about the importance of exports for Croatia’s economic growth and stability.

AD Plastik Group participated in this year’s Career Days at the Faculty of Mechanical Engineering and Naval Architecture in Zagreb, offering students and future professionals a unique opportunity to learn about our company and the possibilities we provide.

Our representatives introduced students to a variety of career options and internship programs within AD Plastik Group, as well as the innovative projects we are working on. They were available to talk with students, answering their questions about the industry, professional challenges, and the opportunities awaiting those who choose a career in the automotive industry. The main topics of discussion were the production processes and the finished products, which they had the opportunity to see.

Our presence at this event reflects AD Plastik Group’s commitment to developing young talent, as well as our desire to share our expertise and vision for the future of the automotive industry. Our participation in the Faculty of Mechanical Engineering and Naval Architecture Career Days is yet another step in promoting innovation and attracting motivated individuals who want to grow and develop within our team.

At the 21st International Conference on Export Promotion, organized by the Croatian Bank for Reconstruction and Development (HBOR), a panel titled “Deglobalization in Action: How the fragmentation of international trade impacts Croatian exports” was held. The panel brought together prominent Croatian industry representatives, including our Management Board President, Mr. Marinko Došen, who spoke about the current challenges and opportunities for export in the global market.

“In recent years, the automotive industry has faced various challenges, which have irreversibly changed certain well-known business models and patterns. The European automotive industry is also facing significantly lower demand for electric vehicles than expected, which is affecting car manufacturers’ plans. Therefore, it is no surprise that the car market is stagnating, but our revenue has increased thanks to the start of serial production of new projects, and we believe that the contracted quantities will be realized,” said Mr. Došen.

In addition to financial success, AD Plastik Group strongly advocates for sustainability through the responsible use of resources to meet the needs of current generations without compromising those of future generations. “Responsible management and sustainable business practices are fundamental principles to positively impact the environment and society,” added Došen.

In addition to our representative, the panel also included Zvonimir Viduka, director of ALTPRO, Eva Usmiani Capobianco from JGL, Gordan Kolak from Končar Elektroindustrija, and Svjetlan Stanić from Stanić Group. The panelists presented their adaptation strategies and discussed the potential of new markets arising from changes in global supply chains. 

AD Plastik Group continues to actively participate in discussions on topics of strategic importance for the Croatian industry, promoting innovation and sustainable solutions that strengthen our competitiveness in the global market.

In the first nine months, AD Plastik Group achieved growth in operating revenue, as reflected in the newly published business results. Despite challenging conditions in the European automotive market, the Group’s operating revenue increased by 17.4 percent compared to the same period last year, reaching EUR 111.53 million. The parent company, meanwhile, achieved a growth of 21.4 percent, with operating revenue totaling EUR 85.07 million.

The reported results indicate a continued recovery and the company’s focus on achieving sustainable business results. The most significant drivers of revenue growth in the observed period are new projects whose serial production started, along with the sale of tools specifically created for these projects.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) for the Group amounted to EUR 8.95 million, marking a 23.6 percent increase compared to the first nine months of last year. The parent company’s EBITDA grew by 91.7 percent, reaching EUR 5.51 million. The Group’s net profit stands at EUR 0.58 million, which is a growth of 44.4 percent in relation to the comparative period, while the parent company’s net profit amounts to EUR 1.7 million and has grown by a significant 1,343.1 percent.

“European car sales in the first nine months increased by only 0.6 percent compared to the same period last year, indicating market stability but also significant changes in its structure and dynamics. In the same period, AD Plastik Group once again demonstrated its resilience and adaptability, achieving significantly higher growth than the market itself. Our focus on the European market has resulted in securing new contracts worth EUR 45.7 million, and by the end of the year, we expect additional deals that will strengthen our order portfolio. Despite challenges in capacity optimization, we continue to invest in the development of new projects, confident that these activities will contribute to the growth of the company’s profitability and value in the long term,“ stated Marinko Došen, President of the Management Board of AD Plastik Group.

The continuation of project and industrialization activities also marked the third quarter of this year. The full effects of serial production on capacity utilization, profitability, and debt levels are expected in upcoming periods as contracted volumes are reached.

“One of the key challenges in the European automotive sector is the significantly slower growth in electric vehicle sales compared to the planned and expected rates, which has affected the overall industry dynamics. This decline in demand for electric vehicles is also reflected in the business decisions of manufacturers, who are adjusting their strategies and production plans to meet market demands. The challenges the automotive market faces reflect broader economic and social changes. In the long term, the focus on sustainable technologies and the green transition is unquestionable, but the shift must be gradual and adapted. AD Plastik Group continues to optimize capacity, enhance cost efficiency, and develop innovative solutions. Our goal remains clear – to ensure sustainable growth and create long-term value for our shareholders and partners,“ said Mr. Došen.

The published business results of the AD Plastik Group for the first six months of 2024 show a visible continuation of market recovery and the company’s business operations. The Group’s operating revenue increased by 21.6 percent compared to the same period last year, amounting to EUR 80.30 million. At the same time, the parent company achieved operating revenue of EUR 62.53 million, representing an increase of 26.1 percent. The revenue growth has been largely influenced by new projects whose serial production started during the year.

Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) at the Group level amounted to EUR 6.52 million, which is an increase of 23.6 percent compared to the first six months of last year. EBITDA in the parent company increased by 44.5 percent, amounting to EUR 4.56 million. The Group’s net profit for the first six months amounted to EUR 1.82 million, representing an increase of 43.7 percent in relation to the comparative period.

“The achieved results are based on the successful implementation of new projects whose serial production started. Our industrialization and project activities remain in full swing. A serial production for an additional six projects will start by the end of the year, and the projects which started in the first half of the year are moving successfully towards reaching the contracted quantities. Simultaneously, our sales activities are very intense, strengthening our position and contributing to further revenue growth. During the reporting period, we sealed new deals worth EUR 9.2 million, and in the second half of the year, we expect this trend to continue and new additional deals to be signed,” said Marinko Došen, President of the Management Board of AD Plastik Group.

Investments in development, specific equipment, and returnable packaging for new projects continue, while a reduction in indebtedness compared to the end of last year is also recorded.

“Our commitment to maintaining financial stability, increasing capacity utilization, and growing profitability remains unchanged and we believe that the continued implementation of new projects, intense sales activities, and our strategic focus on development and quality will contribute to the continuation of positive business trends. We are sure that our knowledge and experience can lead to even greater success and ensure stable and prosperous growth for our company. We look to the future with optimism, aware of the challenges and opportunities that we must overcome,” said Došen. 

As part of the project “Experience is Worth its Weight in Gold”, AD Plastik actively participates in encouraging the employment of people with disabilities. This year too, eight students with disabilities were given the opportunity to do internships in leading Croatian companies, including AD Plastik. The project, which has been going on for 12 years, has connected more than 190 students with employers, 12 of whom got permanent employment. This initiative significantly contributes to social inclusion and equality in the labor market, and this topic was also discussed at the panel “Persons with disabilities in the Croatian labor market – challenges and opportunities” in which Krešimir Mikulandra, human resources development coordinator, participated.

“We firmly believe in an inclusive work environment and actively support the employment of people with disabilities. We recognize their unique talents and the contribution they bring to our team. Although we face the challenges of adapting the work space and processes, we are dedicated to creating conditions that enable the equal participation of all employees. Our commitment to inclusion is not only an ethical obligation, but also a strategic advantage that enriches our working community and contributes to the long-term success of the company,” said Krešimir Mikulandra.

The second day of the first Lider Financial and Investment Forum brought together numerous relevant stakeholders of the domestic financial and real sector, and it was marked by the award ceremony for the best small, medium and large production investments in Croatia.

AD Plastik received a special recognition for continuous investment, and the award was accepted by the Management Board Consultant, Katija Klepo, who also participated in the panel “Who invests in what and how to choose”.

“This year, we applied an investment in the development of exterior products, which are strategic products on which we base the company’s planned growth. The value of the investment was over EUR 2.5 million, which primarily refers to tools for injection molding and additional equipment for vibration and ultrasonic welding. Although the customer initially demanded the use of gluing and hot air technology, we proved all the advantages of vibration and ultrasonic welding compared to the planned one. By replacing the aforementioned technology, labor costs, electricity consumption and risks have been reduced, and the positive impact on the overall carbon footprint is especially important. With this, we have strengthened our relationship with the customer, ensured good references and future inquiries”, said Katija Klepo, Relations with State Institutions and Funds Consultant. Investments are increasingly important to domestic production companies, and concrete examples could be heard as part of the panel where Klepo highlighted the importance of investing in the modernization of production capacities and the demandingness of the automotive industry in terms of sustainability and energy-efficient technologies.