Development activities marked the third quarter
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.