The just published interim unaudited results 2020 of AD Plastik Group are better than the first forecasts. The Group’s operating revenue amounted to HRK 1.2 billion and it decreased by 20.2 percent compared to the previous year, as a result of the impact of the crisis caused by the COVID-19 virus pandemic.

The parent company’s EBITDA amounted to HRK 115.4 million and they decreased by 4.9 percent, while at the Group level they amounted to HRK 166.5 million, which was a decrease of 15.7 percent. The serial production of new vehicle models, which started in 2019, and the sale of non-operating assets in Makarska in 2020 primarily had a positive impact on EBITDA. The realized net profit at the level of the Group amounted to HRK 53.4 million, which was by 42.7 percent lower compared to the previous year, and the parent company recorded a slight decrease of 14.5 percent, so the net profit amounted to HRK 69.08 million. The financial stability of the Group has been preserved and net financial debt has decreased by HRK 104.5 million, or HRK 81.6 million in the parent company compared to 2019.

“Until the beginning of the pandemic, the business operations were carried out in accordance with the set business plans, but already during March and April, almost all car manufacturers stopped the production due to the force majeur. Consequently, we too were forced to temporarily close our factories, which was the most difficult period in the business. We reacted quickly, took all necessary measures to protect the health of our employees and preserve the sustainability of our business. We adjusted our plans very carefully and continued to operate in line with the circumstances imposed by the market. Production gradually started in line with customer activities, and capacities grew in line with their dynamics. Although like most industries the automotive industry too has been hit by the crisis, the development of new vehicle models and plans for the future of our customers have not been stopped. This is evident also in new deals sealed in last year in the amount of HRK 130.6 million,“ said  Marinko Došen, President of the Management Board of AD Plastik Group.

The pandemic has also significantly affected capital markets around the world, thus the ADPL share price in 2020 ranged from the maximum price of HRK 202 in February to the minimum price of HRK 93 in March. The share price at the end of 2020 amounted to HRK 160, which was a decrease of 16.2 percent compared to the end of 2019.

“It will take some time for the market to stabilize and return to pre-crisis figures, but signs of recovery are gradually emerging. We operated better than the first forecasts predicted and ended the year with mild but I believe realistic optimism. Plans for this year are more conservative than usual given the circumstances and duration of the pandemic, but we are confident that they will realize. We have proven in the most difficult moments that we have the necessary knowledge, competencies and quality, and these are our key values that we will know how to use,“ said Marinko Došen.

It is impossible to resist football challenges, and our employees are the best witnesses to that. The launch of the business football league in Split, organized by Sun City Sport, was a sufficient reason to gather a team that will represent the AD Plastik Group in the shortest time possible. Although the epidemiological situation affects the playing of the planned competitions, all participants, but also loyal fans are looking forward to the matches. This most important secondary thing in the world always brings smiles and generates a series of discussions and excitement, so the results of matches are eagerly awaited also within the factory. Good luck guys, we follow you closely!

The Management Board of AD Plastik Group signed a new Collective Bargaining Agreement for 2021 with trade unions, pursuant to which employees of AD Plastik d.d. shall maintain a high level of social and substantive rights. Having signed the said agreement in these difficult times and business conditions characterized by strong negative trends, AD Plastik Group has once again confirmed that it is a responsible employer ready for social dialogue. The fact that the employees are the most important component in the development process of AD Plastik Group has thus once again been confirmed by the Company Management Board in the current period of new, severe and uncertain working conditions resulting from the pandemic.

The agreement has been concluded for a period of one year between the Management Board of AD Plastik d.d. and the three trade unions active within the framework of the Company; namely, Autonomous Trade Union in the Power, Chemistry and Non-Metal Industry of Croatia, the AD Plastik RIS Zagreb Trade Union and the independent trade union of employees of AD Plastik Solin.

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AD Plastik Group received the CSR Index award in the category of Social Responsibility Policies of Diversity and Human Rights Protection, and the award was received on behalf of the company by Ivan Čupić, a member of the Management Board for Production, Logistics and Quality.

“Human rights protection, diversity and equal opportunities policy are part of the corporate culture we live every day. Fair business, safe working conditions, education and respect for human values are just some of the values that we continuously promote within the company. When this is recognized by the professional public, then it is an additional incentive for us to continue to be even better,” said Čupić, thanking for the award.

AD Plastik Group continuously promotes diversity, non-discrimination and inclusiveness in the workplace and is among the first companies in Croatia to sign the Diversity Charter.

The CSR Index awards were presented for the thirteenth time as part of the annual Conference on Corporate Social Responsibility held in Zagreb, organized by the Croatian Business Council for Sustainable Development (HR PSOR) and the main partner of the Croatian Chamber of Economy (HGK). This year, the awards for the best achievements in corporate social responsibility were awarded in nine categories, and more than a hundred registered companies competed. The CSR Index is a method of assessing corporate social responsibility in Croatia based on a ranking system that enables an objective assessment of corporate social responsibility practices and comparison with the practices of others.

The conference was opened with a panel discussion “European Green Plan: Croatia’s readiness to achieve goals”, which brought together leading experts in corporate social responsibility and sustainability, corporate managers and organizational leaders.

The business results of the AD Plastik Group for the first nine months of 2020 have been published, in which the consequences of the crisis caused by the COVID-19 virus pandemic are evident. Operating revenue of the AD Plastik Group in the reporting period amounted to HRK 841.68 million and it was lower by 23.2 percent compared to the same period last year.

EBITDA of the Group amounted to HRK 108.63 million, being lower by 18.7 percent, while the parent company recorded its growth by 5.7, which was largely influenced by the the sales of non-operating assets and government incentives used. Despite very demanding circumstances, the Group’s net profit amounted to HRK 23.79 million, which was a decrease of 62.8 percent compared to the same period last year.

“Although the impact of the crisis is evident in all markets in which we operate, in the third quarter the indicators and announcements of our customers were somewhat more optimistic. Namely, there was a slight increase in car sales, and our customers announce larger quantities, which will certainly also have a positive impact on our capacities, and therefore the results. New deals sealed worth EUR 106.6 million during this reporting period support the fact that car manufacturers have not stopped their activities and development planning. If customers announcements come true and there are no major surprises, the expected decline in the Group’s operating revenue for 2020 will be about 25 percent,” said Marinko Došen, President of the Management Board of AD Plastik Group.

The financial stability of the Group has been preserved, so net financial debt decreased by HRK 59.9 million compared to the end of last year, or by HRK 54.2 million in the parent company. The NFD/EBITDA ratio was 2.21 for AD Plastik Group and 2.56 for the parent company.

“As the COVID-19 virus pandemic still goes on, our absolute priorities are employee health and safety protection, as well as business sustainability and financial stability. We have been taking all necessary measures and have adjusted our plans, costs and investments to the new circumstances. The Company’s liquidity and good balance sheet have been ensured, which will make our business easier in these challenging circumstances,“ said Marinko Došen.

AD Plastik Group has become a member of the unique global not-for-profit organization AIAG, which brings together the world’s leading car manufacturers, their suppliers and service providers, relevant government entities and individuals from academic community. Thanks to the membership, employees are provided with numerous opportunities for professional development, access to educational materials, participation in virtual trainings and workshops, and insight into examples of good practice from other experts in the automotive industry.

Close to the factory in Tiszaújváros, the table tennis hall has become a favorite gathering place of our employees. Enthusiastic ADP employees regularly try their strength against each other in table tennis, and the number of interested participants is constantly increasing. “Ping-pong can be played by anyone because it is easy to learn it”, is the motto by which employees are invited to have fun and socialize after work. Epidemiological measures limit the dynamics and number of those gathered, but trainings will certainly result in a real game within the company as soon as circumstances allow it.

As part of one of the largest business conferences in Croatia Big Plans Day 2020, organized by the business weekly Lider, a panel discussion was held on the topic Business development and risk management. Along with the President of the Management Board of AD Plastik Group Marinko Došen, the panel was attended by the founder and member of the Management Board of Business Intelligence Anita Cvetić Oreščanin, the founder and President of the Management Committee of JGL and the founder and President of the Supervisory Board Tokić d.o.o Ilija Tokić. The discussion was moderated by Miodrag Šajatović, Editor-in-Chief of Lider.

Planning in uncommon conditions, experiences during the crisis and recovery predictions were the main topics of the panel discussion.

“I believe that the automotive industry will recover faster than planned, so in 2022 we can expect a return to the volumes before the crisis. Already next year will be a year of recovery for the industry and for us. Announcements of our customers, which are better than our expectations, also give us reasons for mild optimism. The number of vehicles on assembly is higher than forecast in May and June, which is very good. I think the worst period is behind us. Cars have proven to be one of the safest means of transport in this crisis as well, so there is no reason to fear. Vehicles will certainly continue to be produced and the automotive industry will be developed. For example, no Renault Clio in Slovenia can be produced without our components. Slovenian Revoz now assembles over 600 vehicles a day, which is a very good trend. Our plans are ambitious, we have adapted them to the current situation, but we are planning for the long term. We currently have 50 active projects whose serial production is yet to follow. The new deals that we have sealed speak in favor of that also,” said Marinko Došen, among other things.

For the twelfth time, Big Plans Day gathered key names of the Croatian business community, and despite very challenging times, there was no lack of optimism among the participants. After the welcoming speeches of the organizers and partners, introductory speeches were given by the Governor of the Croatian National Bank Boris Vujčić, the Minister of Economy and Sustainable Development Tomislav Ćorić and the President of the Republic of Croatia Zoran Milanović.

AD Plastik is the best large exporter in 2019 and also the best exporter to France. At the Golden Key Awards Ceremony, as part of the 15th Convention of Croatian Exporters held in City Plaza Zagreb under the auspices of the Government of the Republic of Croatia, the awards were received on behalf of the company by the President of the Management Board Marinko Došen.

In addition to the awards received, AD Plastik was nominated in two other categories, namely for the best exporter to Slovenia and the most innovative exporter.

While taking over the main award for the best large exporter, Marinko Došen expressed his gratitude to the organizers on behalf of all the winners: “It is a great pleasure and honor for me, but also an obligation for the future to receive this award for the second time in a short period of time. This is the result of the dedicated work of all our employees and constant investment in knowledge, competencies and competitiveness. Last year we achieved historically the best business results, for the fifth year in a row we have been achieving double-digit growth in a very demanding industry and we continuously improve all elements of business success. This crisis has slowed us down in further plans, but it will certainly not stop us. Newly sealed deals, over 50 projects we are working on and the capacity utilization that is slowly returning to normal give us the reason for the slight optimism in these rather complex times. Congratulations to all the award winners because exporters really need to be the backbone of the economy“.

After the awards ceremony, a panel discussion was held on the topic “The impact of the corona crisis on the Croatian economy and exports”, which was opened with introductory speech by the Governor of the Croatian National Bank Boris Vujčić. The panel discussion was attended by: Tomislav Ćorić, Minister of Economy and Sustainable Development, Marinko Došen, President of the Management Board of AD Plastik, Marijana Ivanov and Josip Tica, professors from the Faculty of Economics, University of Zagreb and Darinko Bago, President of Croatian Exporters.