The results of AD Plastik Group’s business operations for the first quarter of 2023 have been published, which finally show the beginning of the stabilization of supply chains, more precisely the supply of semiconductors. The Group’s operating revenue amounted to EUR 33.07 million and it was lower by 1.1 percent compared to the same period last year, but the main reason for such a trend is significantly reduced revenue from the Russian market. At the same time, the operating revenue of the parent company increased by 8.2 percent and amounted to EUR 25.37 million, while the Group’s revenue in the markets of the European Union and Serbia increased by 18.8 percent.

Earnings before Interest, Taxes, Depreciation, and Amortization (EBITDA) at the Group level amounted to EUR 2.8 million and it was lower by 14.5 percent, but its improvement is noticeable compared to previous reporting periods. The realized net profit of the Group for the first three months amounted to EUR 0.68 million and it significantly grew in relation to the comparative period.

„The results of the Group were expected considering the geopolitical situation and significantly lower revenue and activities in the Russian market, but the share in total revenue of the Group from this market has significantly decreased, amounting to only 7.21 percent. It is important to note, despite the circumstances and the situation in which one Russian factory does not work, and another produces components with reduced capacities, that Russian companies, considered as a whole, are self-sustaining and financially independent from the parent company. At the same time, the number of newly registered cars in Europe has been growing in all major markets. With more than EUR 95 million of new deals sealed in the observed period, these indicators give us reason for moderate optimism. Due to the uncertainties in the market, caution is still necessary, but our primary task in the coming period is to strengthen our position as a development supplier and preserve financial stability,“ said Marinko Došen, President of the Management Bord of the AD Plastik Group.

Although geopolitical uncertainties and significant inflationary pressures are still present, the prices of raw materials and energy sources have somewhat stabilized. This has had a positive impact on the company’s results, with certain sales price adjustments that have been implemented.

„A developmental year is ahead of us and we are fully focused on the quality preparation of the sealed deals because serial production regarding almost all the projects on which deals were sealed during this and last year is expected to start during 2024. We have been adapting to circumstances, but we have a clear vision and goal. By expanding our development and production portfolios, we want to strengthen our position in the European market and readily join the new era of the automotive industry,“ said Marinko Došen.

The Integrated Annual Report for 2022 of AD Plastik Group has been published. It contains all important information about the company’s business operations, audited financial statements, and sustainability indicators. This is the sixth Integrated Annual Report of the Group and the tenth jubilee sustainability report, prepared according to GRI standards.

In the reporting period, AD Plastik Group was facing the consequences of the pandemic, i.e. the still present lack of semiconductors in the market, and at the same time it was significantly exposed to the consequences of the new crisis due to the Russian-Ukrainian conflict and the geopolitical situation. The year was marked by inflation, rising prices of materials and energy sources, increasing labor and service costs, which also affected the financial business results.

“There is no doubt that the automotive industry has a clear direction toward sustainability, and we want to provide added value in the market in that segment as well. Reducing the carbon footprint is part of our strategy adopted in the reporting period, and it refers to the period from 2023 to 2030. In it, we have clearly indicated sustainable business as an indispensable part of the strategic approach in all segments. This is one of the most challenging periods in the company’s history, but I am sure that we will once again demonstrate our resilience and continue conducting stable business in the long term. There are still many challenges ahead of us, but preserving financial stability and sustainable business is our priority. Realization of existing projects and expansion of development and production portfolios will strengthen our position as a development supplier in the European market. By improving and developing our internal processes, we want to be ready for the rise of the automotive industry that is sure to come, hopefully in the near future,” said the President of the AD Plastik Group Management Board, Marinko Došen.

Despite an extremely demanding and challenging year, financial stability has been preserved, and sustainable business development has been continued in all segments. In 2022, more than EUR 200 million of new deals for the European market were sealed, which is a good basis for the company’s development in the future. In the second part of the year, the situation gradually stabilized, the number of newly registered vehicles increased, the prices of energy sources and basic materials stabilized to some extent, so by harmonizing prices with customers and starting new projects, profitability growth is expected in the coming periods.

“Although AD Plastik Group is a company that produces plastic parts for the automotive industry, which, considering the nature of the activity, at first glance may seem like a production that cannot have a positive impact on the environment, it should be emphasized that precisely the increase in the share of plastic parts in vehicles has a positive effect on the performance of the vehicles, because by reducing the weight, energy sources consumption is also reduced, resulting in lighter vehicles with a lower impact on the environment. In addition to the development of new plastic vehicle components, AD Plastik Group continuously develops new materials from bioplastics, which are obtained from renewable plant materials, which are becoming increasingly represented in products of the company. We are already used to a consistent following of the GRI guidelines when reporting and to reports that are rich in useful and clearly presented information. What is especially pleasing is that in the reports we can read the continuous progress in the company’s contribution to sustainable development, which is noticeable even in years of hindered business, which was certainly the year of this report,” it is stated, among other things, in the HR BCSD opinion, which verifies the non-financial part of the company’s report.

The Zagreb factory of AD Plastik Group in Jankomir received one of the most prestigious quality certificates in the automotive industry – Ford Q1. Ford representative David Pálka ceremoniously presented it to the President of the Management Board, Marinko Došen, and with the traditional raising of the Ford Q1 flag, the Zagreb factory was ranked among the highest quality suppliers of this global car manufacturer.

The Ford Q1 certificate is an indicator of the exceptional quality of suppliers and is awarded to those who have achieved excellence according to different and extremely strict criteria and requirements by Ford. Certification according to Ford’s methods is one of the most demanding ones in the automotive industry, which is why it is especially valued.

“This is a great recognition for us that confirms the quality of delivered products and the repeatability of our processes in the global market, which further strengthens our position as a desirable and reliable supplier and partner. Our focus on meeting the requirements of our customers, above all by delivering high-quality and performance products while meeting precisely set deadlines, has shone in all its glory. We have been basing partnership relations with our customers on quality and trust for years, and this is another indicator of how successful we are in this regard. In these very demanding times when we all lack more good news, this certificate has a special value for all our employees. Even during this very demanding procedure, they have shown exceptional knowledge, quality, and passion, and I thank them for that,” said Marinko Došen while receiving the certificate.

Although the Solin factory of AD Plastik Group has had the Q1 certificate for many years, the Zagreb factory received the confirmation in August 2022 after a preparation and certification processes that lasted almost three years. During the processes, over two hundred different documents were presented with detailed descriptions of procedures and indicators that include the entire supply chain and production quality. Ford requires a high level of process digitization, production and shipping planning, zero tolerance for product quality deviations, reliable and precise management of the supply chain, orders, capacities, suppliers, packaging, space, and materials, which AD Plastik fully fulfilled.

The AD Plastik Group factory in Zagreb currently produces components for the new Ford Puma ST-line vehicle, and on average, several thousand components are delivered daily for that car manufacturer.

The President of the Republic of Croatia, Zoran Milanović, visited the AD Plastik Group factory in Zagreb, where he had a tour of the injection molding plant and the painting line. After the tour, a meeting was held with the company’s Management Board.

“AD Plastik is a company that exports 100 percent of its products. They have no clients in Croatia. If this were a widespread phenomenon in Croatia, Croatia would be even more economically stable,” said the President of the Republic, Zoran Milanović, after visiting AD Plastik Group.

President Milanović was accompanied by the President’s special economic consultant, Velibor Mačkić, and they were hosted by the President of the Management Board of AD Plastik Group, Marinko Došen, and members of the Management Board, Mladen Peroš, Zlatko Bogadi, and Josip Divić.

“The visit of the President of the Republic is first of all an honor, but also an indication that the importance of our business has been recognized. We are the largest manufacturer of automotive components in Croatia, and despite the very demanding global situation, we are a stable company with a clear vision for the company’s further development. We are currently focused on reducing the impact of the crisis on business, preserving sustainability and financial stability, but at the same time we have been sealing new deals and working on developing and expanding the portfolio of our products and customers. This is best supported by new deals worth EUR 323 million sealed in the past two years for the European market,” said the President of the Management Board, Marinko Došen.

AD Plastik Group’s business results for the first nine months of 2022 have just been published, and they are still significantly influenced by external factors. The operating revenue of the Group amounted to HRK 623.98 million and it decreased by 24.9 percent compared to the same period last year.

Normalized EBITDA at the Group level amounted to HRK 11.57 million and it was lower by 88.1 percent compared to the first nine months of 2021. The normalization in the amount of HRK 75 million refers to the value adjustment in accordance with the estimated asset recoverability of Russian companies. Therefore, a net loss of HRK 87.04 million was realized in the reporting period.

“The company’s financial position is stable despite the underwhelming results. The Russian-Ukrainian crisis has greatly affected the business operations and results, especially of Russian factories, so the revenue share from that market in the Group’s total revenue has decreased significantly. The automotive industry in the European market is still facing a lack of semiconductors, which affects the capacities and operational plans of manufacturers and suppliers, and thus also the revenue. Disruptions in supply chains and increases in the prices of materials and energy sources are no less demanding, however, increased development activities within the automotive industry are evident at the same time. This is also supported by new deals worth EUR 205 million sealed for the European market this year, which gives us a reason for mild optimism,“ said the President of the Management Board of AD Plastik Group Marinko Došen.

Despite very demanding circumstances, the net financial debt of AD Plastik Group and the parent company was reduced. Development activities for the preparation of new projects are in full swing, regarding which the start of serial production is expected at the end of 2023 and during 2024. The realization of the mentioned projects is expected to bring about the beginning of the company’s recovery.

“AvtoVAZ started the production of two vehicles in Russia, the Lada Niva and Granta, in the third quarter, and their announcements for the next period are quite ambitious. The factory in Togliatti has started deliveries after months of break, but given the situation, a great deal of caution is required. Our commercial activities are fully focused on the European market, and our main task remains the same – to preserve the financial stability of the company and reduce the negative consequences of external influences. The realization of the contracted projects is ahead of us, as well as another very demanding year. We are aware of the challenges and circumstances, but we are also confident in our knowledge, experience and strength we have,“ said Marinko Došen.

As part of the 14th Conference on Sustainable Development, the Croatian Sustainability Index awards were awarded for the fifteenth time. AD Plastik is the winner of the HRIO award in the field of children’s rights, and the award was accepted on behalf of the company by Zlatko Bogadi, a member of the Management Board for Production, Logistics and Quality.

“Respecting children’s rights, as well as human rights in general, is the basic premise of a sustainable future and each of us, from our position and in accordance with our capabilities, should contribute to their protection as much as possible. Every child on this planet, without exception, has the right to develop and realize its potential, and by caring for children we all contribute to a better future. AD Plastik Group invests great efforts in the constant improvement of all aspects of sustainable business, and this is an unquestionable part of our mission and business strategy. I thank you for the award, which is an additional incentive for us to be better and realize numerous possibilities and improvements in the future,” said Zlatko Bogadi while accepting the award.

The Croatian Sustainability Index (HRIO) is a methodology that provides a comprehensive insight into the sustainability of business practices, a review of compliance with the latest provisions of the European Union, as well as a comparison with the practices of other Croatian companies. More than a hundred companies take part in the annual assessment, which has been carried out for the fifteenth year in a row (previously known as the CSR Index).

Congratulations to all winners!

AD Plastik Group’s business results for the first six months of 2022 were largely marked by geo-political events and the consequences of the crisis with the lack of semiconductors in the market. The Group’s operating revenue decreased by 30.4 percent compared to the same period of 2021 and amounted to HRK 433.09 million. Normalized EBITDA amounted to HRK 18.58 million and was lower by 77.5 percent, while a net loss of HRK 59.46 million was realized in the observed period, and it includes value adjustments in the amount of HRK 75 million made on the basis of the asset recoverability assessment of Russian companies.

“Part of the Western car manufacturers has left the Russian market, while others have suspended their production activities. As a result, their suppliers have followed their example, so in the past three months, the automotive industry in that market was almost at a standstill. Announcements about the launch of part of the production in the second half of the year were made but, considering the series of uncertainties, great caution is needed in planning. At the same time, European car manufacturers are still facing the lack of semiconductors, which is why the production capacities of certain car manufacturers in the market are still at lower levels than usual,” said the President of the Management Board of AD Plastik Group Marinko Došen.

Despite the very demanding circumstances, the net financial debt of AD Plastik Group and the parent company has decreased compared to the end of last year and the financial position of the company is stable. The increasing intensity of development activities of car manufacturers is evident, which is also supported by new deals worth EUR 173.7 million sealed for the European market in the reporting period. “We have fully intensified our commercial and development activities and we have focused our business on the European market and mostly on well-known customers. We have been actively working on development activities in order to offer them better and higher-quality solutions in the future and thereby expand our portfolio of products and services, as well as customers. AD Plastik Group undoubtedly has knowledge and quality, and we have demonstrated our strength several times during our history. This rather difficult period will certainly last for some time, but I believe that after it we will be much more experienced, readier and stronger to face some new, more demanding, and positive challenges,” said Marinko Došen

This year too, AD Plastik is the winner of the award for the best exporter to Slovenia for the year 2021. The award was received on behalf of the company by Finance Director Josip Divić.

As part of the 17th Convention of Croatian Exporters, Golden Key awards for the best Croatian exporters in 2021 were awarded. Croatian Exporters’ Association Golden Key awards were awarded for the fifteenth time in several categories, including those related to individual markets export. For Croatian exporters, this is a special recognition of the excellence awarded by the Croatian Exporters’ Association in cooperation with its partners.

“In these rather difficult times, such awards are a source of additional joy and motivation to us. Like other business subjects, AD Plastik Group has been facing a crisis that will not end anytime soon and which unfortunately still carries a number of unknowns. Despite this, new deals sealed this year worth almost EUR 200 million are an additional incentive for us to continue confronting it in a powerful and persistent manner, and I believe that the results of our work will follow in the future,” said Josip Divić, AD Plastik’s Finance Director.

In addition to winning the nomination, AD Plastik was also nominated in the Most Innovative Exporter category, and at the conference it was pointed out that exporters make up 16 percent of the total number of companies, employ 51 percent of the total number of employed persons, generate 58 percent of investments and 67 percent of sales revenue.

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.