Financial stability of AD Plastik Group
The just published financial results of AD Plastik Group for the first quarter of 2021 are expected and they confirm the financial stability and profitability of the company in the very demanding and challenging circumstances of the corona crisis.
Operating revenue amounted to HRK 327.21 million, EBITDA amounted to HRK 52.32 million, and net profit amounted to HRK 25.84 million at the Group level.
All indicators decreased compared to the first quarter of last year, but it should be noted that the company in the first quarter of 2020 continued to record revenue growth, despite the onset of the pandemic and a significant decline in the automotive market.
“In the first two months of 2020, our factories achieved record results, and the beginning of the pandemic and the consequences it caused unexpectedly changed the situation. Nevertheless, we ended the first quarter of 2020 with revenue growth, which was also contributed by one-time positive impacts in that period, so we can say that this was almost the last pre-pandemic reporting period. Although the automotive industry, like the global economy as a whole, has been facing a number of challenges and uncertainties, moderate positive market indicators are evident. Our risk management strategy through market dispersion has proven to be effective, which is evident also in our results. The Russian car market was the least affected by the crisis, so our factories in Russia recorded revenue growth of 15.5 percent in this period,” said the President of the Management Board of AD Plastik Group, Marinko Došen.
The markets in which the company operates show signs of a moderate recovery regarding the number of newly registered vehicles, which was evident in the results of the previous quarter, although the production of new vehicles in the European market has been somewhat slowed due to the shortages of semiconductors. Like the global economy as a whole, the automotive industry has been facing the consequences of the crisis, and market stabilization is expected in the second half of the year. The price of the ADPL share increased by 13.8 percent in the first quarter, compared to the end of last year, and a dividend from retained earnings of HRK 8 was paid in March.
“We have preserved financial stability, which allows us to deal more easily with the consequences of the crisis, and in addition to protecting the health and safety of employees, this is our primary goal also in the coming period. We monitor trends and influences in the market and adequately adapt to them, and we have strengthened our position as a quality and reliable partner. We continue our development and sales activities uninterruptedly, and 43 previously contracted projects in the European and Russian markets are currently ongoing. New deals are also being sealed, by which our portfolio of future deals offers a stable and secure perspective. We have adapted our plans to the circumstances, so our goals for 2021 are more conservative, but I believe they are achievable,” said Marinko Došen.