Results better than the planned ones
The continuation of successful operations and the realization of the planned growth of revenue and profit of the AD Plastik Group have been confirmed by the just-announced interim unaudited results for 2019. Operating revenue amounted to HRK 1.5 billion, representing an increase of 17.1 percent compared to the same period last year.
Revenue at the parent company increased by 17.3 percent, amounting to HRK 1.1 billion. Start of serial production of new vehicle models and tool sales regarding these vehicles have greatly influenced profitability growth, thus EBITDA of the Group amounted to HRK 194.8 million, recording an increase of 20.4 percent, while in the parent company it increased by 49.2 percent and amounted to HRK 121.1 million. The Group’s profit increased by 10.4 percent, amounting to HRK 98.6 million, and in the parent company the profit is slightly higher than last year’s, amounting to HRK 89.7 million.
„Despite the challenges in the automotive market, our results confirm the correctness of our vision, strategy and business decisions we make. The growth trend of our Group is still above the market trends in which we operate, which also shows that we have chosen a good direction of business development. The past year was extremeley challenging for our production sites, especially in Croatia. We have successfully started serial production regarding several new and very significant projects, the most notable of which are Clio 5 and Ford Puma as well as redesigned Twingo and Smart. We have filled production capacities in Croatia and new deals worth EUR 157.9 million, sealed for the Russian market, will significantly fill the capacities of our Russian production sites. In addition to the new deals sealed for the Russian market, new deals worth EUR 57 million have been sealed in the European market,“ said Marinko Došen, President of the Management Board of AD Plastik Group.
Despite the significant investment cycle, the growth of operating business has improved net financial debt ratios relative to EBITDA, amounting to 2.26 at the Group level.
„We have made a safe step into another business year that brings new challenges and opportunities, and I believe also the successful results. Preparations of our production sites in Russia for acceptance of new projects as well as production stabilization at Croatian production sites lay ahead of us. We have set ambitious plans and the goals and their realization requires a high level of focus from us. The results we have been achieving are an additional motivation and incentive, but at the same time an obligation and responsibility to all our stakeholders to continue in the direction of further growth and development of the Group,“ said Marinko Došen.
The ADPL share price increased by 8.5 percent in the reporting period and as of December 31, 2019, its price amounted to HRK 191. According to the AD Plastik Group’s dividend policy and results achieved, a dividend amounting to HRK 12.5 per share was paid last year.