Results achieved above the planned ones
The audited Integrated Annual Report of the AD Plastik Group for 2019, which has just been published, is a confirmation of the successful business operations of the Company in the last year, in which the results were achieved above the planned ones. Operating revenue grew by 16.7 percent compared to the previous year, amounting to more than HRK 1.5 billion. The Group’s net profit increased by 14.9 percent, amounting to HRK 102.6 million and EBITDA amounted to HRK 197.5 million, representing an increase of 22.1 percent.
“We have successfully been coping with the business challenges in the automotive market. The strategy we have been implementing, the vision, determination and soundness of business decisions have been successful. Unfortunately, the COVID-19 virus pandemic has put us all in front of brand new and unexpected challenges, and making plans has additionally been made difficult due to the uncertainty of the duration of this situation. In such circumstances, a stable financial position and good results achieved will certainly greatly help to continue our business operations and maintain stability,” said President of the Management Board Marinko Došen.
The growth trend of the AD Plastik Group is still above movements of the markets in which it operates, and despite a significant investment cycle, the growth of operating business has improved net financial debt ratios relative to EBITDA amounting to 2.23 at the Group level.
The ADPL share price increased by 8.5 percent in the reporting period and as of December 31, 2019, it amounted to HRK 191. According to the AD Plastik Group’s dividend policy and results achieved, a dividend of HRK 12.5 per share was paid out last year.
In addition to the financial results, the integrated report contains detailed information on social, environmental and economic impacts, Company and business risks management. The Company’s Sustainability Report is an integral part of the Integrated Annual Report, which provides a comprehensive overview of financial and non-financial performance indicators.
“The past year has been extremely challenging for our production sites, especially in Croatia. We have successfully started serial production regarding several new and very significant projects, thus filling the capacities in Croatia. Some of the most significant projects we have started are the Clio 5 and Ford Puma as well as the redesigned Twingo and Smart. We have sealed new deals worth EUR 157.9 million in the Russian market and EUR 57 million in the European market. This should significantly fill the capacities of our factories in Russia. Our ambitious plans and targets set for 2020 will undoubtedly be affected by the crisis caused by the COVID-19 virus pandemic. We have been undertaking a number of activities and safety and protection measures in order to preserve the health of our employees and the sustainability of our business in the first place. This situation will change a lot of things, but we will certainly do everything in our power to maintain our existing positions and thus justify the trust of all our stakeholders in these rather difficult times,” said Marinko Došen.