Business significantly affected by the geopolitical events
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