Sustainable business of AD Plastik Group in the year of the pandemic
The Integrated Annual Report of the AD Plastik Group for 2020 has been published, containing relevant information on the company’s activities and business operations, revised financial results and sustainability indicators according to GRI standards.
The Group’s operating revenue amounted to HRK 1.2 billion and recorded a decrease of 20.9 percent compared to the record 2019. This is a consequence of the impact of the crisis, but the results achieved are better than the first predictions at the beginning of the pandemic. The Group’s EBITDA amounted to HRK 165.9 million and recorded a decrease by 16 percent. Serial production of new vehicle models started in 2019 and the sale of non-operating assets had a positive impact on EBITDA. Net profit of HRK 46.9 million was generated, and net financial debt was reduced by HRK 104.6 million.
“The past year was marked by pandemic that caused a global crisis in all segments, so it also affected the business of our company. Despite the very demanding circumstances and challenges, we are satisfied with the results achieved and they are still above the original predictions announced at the beginning of the pandemic. Like most industries, the automotive industry has been severely affected by the crisis, but the development of new vehicle models and plans for the future have not been stopped at any point. This fact is supported by the EUR 130.6 million of new deals selaed in the past year,” said Marinko Došen, President of the Management Board of AD Plastik Group.
AD Plastik Group meets very high standards of sustainability in economic, but also social and environmental topics that are incorporated into all elements and processes of business and management. In the past year, special emphasis was placed on protecting the health and safety of employees, but also on preserving job positions. At the same time, other indicators of sustainable business were applied and improved, which was a special challenge given the circumstances and structure of the company.
The non-financial part of the fourth in a row Integrated Report of AD Plastik Group has been verified by HR BCSD, whose opinion, among other things, states: “AD Plastik Group is an example of a business organization with many years of application of social responsibility and focus on sustainable development, and we believe that namely this strategic commitment has brought benefits in crisis situations, and enabled rapid adjustment and recovery. The Integrated Report for 2020 has again met expectations, both from the point of view of the exhaustiveness of the content as well as from the point of view of year-over-year-growth in relation with clarity and transparency of presentation of indicators and other supporting information. The report illustrates quality and responsibility that is in line with the reputation of the company which is a leading manufacturer of components for the automotive industry in this part of Europe.“
Based on market indicators in the last quarter of 2020, which gave reasons for moderate optimism, the report also includes the company’s targets for 2021, which indicate a slight increase in operating revenue.
“In the circumstances in which we operate, caution is necessary because the pandemic is still ongoing and its course is affecting the overall economic picture. Although the number of newly registered vehicles is expected to grow in the markets where we operate, our plans are more conservative, but we believe they are also achievable. It will take some time for the market to fully stabilize and return to pre-crisis figures, but signs of recovery are gradually emerging. In the most difficult moments, we have shown the necessary knowledge, competencies and quality, and I believe that we have justified the trust of our stakeholders, and we will continue to move on in this direction in the future,” said Marinko Došen.