According to the Interim Report by Management for the first three months of 2020, which has just been published, AD Plastik Group’s operating revenue amounted to HRK 362.6 million, representing an increase of 4.1 percent compared to the same period last year. Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) at the Group level amounted to HRK 62.7 million, representing an increase of 36.3 percent.

„We have made a safe step into this year and for most of this reporting period we operated in accordance with our plans and goals. All of us were faced with significant challenges caused by the spread of the COVID-19 virus, thus in the second half of March our customers were forced to temporarily stop their production facilities, and consequently – so did we. The stable financial position of the company makes it easier for us to bear the brunt of the crisis we have been facing, and we also use Government measures to ensure business sustainability“, said Marinko Došen, President of the Management Board of AD Plastik Group.

EBITDA margin amounted to 17.29 percent, and despite the negative impact of the weakening of the Russian ruble and Hungarian forint exchange rates, the Group’s net profit was slightly higher than last year in the observed period and amounted to HRK 28.2 million.

„At all Group’s sites, we undertake a range of activities to protect the health and safety of our employees. Although this situation is sure to change a lot, we have been constantly taking care of the sustainability of our business and we use this situation as an opportunity to learn and improve in all segments of our business. Our goal is to overcome crisis with as few consequences as possible and maintain our position as a quality and reliable partner. The vision and direction in which we want to develop are clear and we will not give up on that. The crisis will slow us down a bit, but it will certainly not stop us. I believe that we will succeed in this and in the long run justify the trust of all our stakeholders,“ said Marinko Došen.

It will certainly take some more time for the handshake to become the usual way of greeting again, but business operations need to be continued regardless of the circumstances. We will soon return to our workplaces and be in close proximity to our colleagues which is a great challenge in the time of the pandemic. With the joint efforts, we need to provide an environment where every employee will feel safe and comfortable.

AD Plastik Group has been intensely preparing to restart production at its factories, while taking primarily care of protecting the health of employees. Accordingly, we have prepared the ADP COVID-19 Protocol and a full set of instructions with detailed guidelines for the behavior and operation in new circumstances caused by the spread of coronavirus.

Implementing the prescribed measures requires adjusting workplaces and familiar work practices, but changes in familiar habits have become a necessity in life and business, at least for the foreseeable future.

Employee health and safety are at the forefront of our priorities, and by publishing this document we want to give all our stakeholders an insight into the measures we have been implementing.

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.