Arhiva Corporate - AD Plastik

AD Plastik is the winner of the prestigious Platinum Key award, presented as part of the 20th anniversary celebration of the Croatian Exporters Association at the Croatian State Archives in Zagreb. The Platinum Key award is a special recognition given to exporters with proven success and continuity in excellence over the past ten years, or the entire seventeen years since the establishment of the traditional Golden Key award for exporters. Over these seventeen years, AD Plastik has been awarded a total of thirteen Golden Keys.

“This award primarily reflects our team’s long-term work, dedication, contributions, and successes. Above all, I want to thank all our employees whose dedication, innovation, and persistence form the foundation of our success. Aware of the importance we hold as exporters, this recognition serves as an additional incentive for us to remain committed to the goal of further growth and excellence. Export is a key driver of economic growth, stability, and progress in Croatia, and we are aware of the responsibility we bear as exporters – not only to our business partners and customers but also to the Croatian economy. Through our operations, we contribute to strengthening the domestic industry, creating new jobs, and enhancing Croatia’s competitiveness in the global market. We will continue to do so, and I thank the Croatian Exporters Association for this recognition, which confirms that continuous work and progress are always recognized,” stated Marinko Došen, President of Management Board of AD Plastik Group.

AD Plastik Group has been one of the leading Croatian export companies for many years, continuously investing in development and innovation to ensure the excellence of its products in the international market. The Croatian Exporters Association was established in 2004 and has since been dedicated to representing the interests of Croatian exporters, collaborating with relevant institutions, organizing educational programs and events, and raising awareness about the importance of exports for Croatia’s economic growth and stability.

At the 21st International Conference on Export Promotion, organized by the Croatian Bank for Reconstruction and Development (HBOR), a panel titled “Deglobalization in Action: How the fragmentation of international trade impacts Croatian exports” was held. The panel brought together prominent Croatian industry representatives, including our Management Board President, Mr. Marinko Došen, who spoke about the current challenges and opportunities for export in the global market.

“In recent years, the automotive industry has faced various challenges, which have irreversibly changed certain well-known business models and patterns. The European automotive industry is also facing significantly lower demand for electric vehicles than expected, which is affecting car manufacturers’ plans. Therefore, it is no surprise that the car market is stagnating, but our revenue has increased thanks to the start of serial production of new projects, and we believe that the contracted quantities will be realized,” said Mr. Došen.

In addition to financial success, AD Plastik Group strongly advocates for sustainability through the responsible use of resources to meet the needs of current generations without compromising those of future generations. “Responsible management and sustainable business practices are fundamental principles to positively impact the environment and society,” added Došen.

In addition to our representative, the panel also included Zvonimir Viduka, director of ALTPRO, Eva Usmiani Capobianco from JGL, Gordan Kolak from Končar Elektroindustrija, and Svjetlan Stanić from Stanić Group. The panelists presented their adaptation strategies and discussed the potential of new markets arising from changes in global supply chains.

AD Plastik Group continues to actively participate in discussions on topics of strategic importance for the Croatian industry, promoting innovation and sustainable solutions that strengthen our competitiveness in the global market.

In the first nine months, AD Plastik Group achieved growth in operating revenue, as reflected in the newly published business results. Despite challenging conditions in the European automotive market, the Group’s operating revenue increased by 17.4 percent compared to the same period last year, reaching EUR 111.53 million. The parent company, meanwhile, achieved a growth of 21.4 percent, with operating revenue totaling EUR 85.07 million.

The reported results indicate a continued recovery and the company’s focus on achieving sustainable business results. The most significant drivers of revenue growth in the observed period are new projects whose serial production started, along with the sale of tools specifically created for these projects.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) for the Group amounted to EUR 8.95 million, marking a 23.6 percent increase compared to the first nine months of last year. The parent company’s EBITDA grew by 91.7 percent, reaching EUR 5.51 million. The Group’s net profit stands at EUR 0.58 million, which is a growth of 44.4 percent in relation to the comparative period, while the parent company’s net profit amounts to EUR 1.7 million and has grown by a significant 1,343.1 percent.

“European car sales in the first nine months increased by only 0.6 percent compared to the same period last year, indicating market stability but also significant changes in its structure and dynamics. In the same period, AD Plastik Group once again demonstrated its resilience and adaptability, achieving significantly higher growth than the market itself. Our focus on the European market has resulted in securing new contracts worth EUR 45.7 million, and by the end of the year, we expect additional deals that will strengthen our order portfolio. Despite challenges in capacity optimization, we continue to invest in the development of new projects, confident that these activities will contribute to the growth of the company’s profitability and value in the long term,“ stated Marinko Došen, President of the Management Board of AD Plastik Group.

The continuation of project and industrialization activities also marked the third quarter of this year. The full effects of serial production on capacity utilization, profitability, and debt levels are expected in upcoming periods as contracted volumes are reached.

“One of the key challenges in the European automotive sector is the significantly slower growth in electric vehicle sales compared to the planned and expected rates, which has affected the overall industry dynamics. This decline in demand for electric vehicles is also reflected in the business decisions of manufacturers, who are adjusting their strategies and production plans to meet market demands. The challenges the automotive market faces reflect broader economic and social changes. In the long term, the focus on sustainable technologies and the green transition is unquestionable, but the shift must be gradual and adapted. AD Plastik Group continues to optimize capacity, enhance cost efficiency, and develop innovative solutions. Our goal remains clear – to ensure sustainable growth and create long-term value for our shareholders and partners,“ said Mr. Došen.

The published business results of the AD Plastik Group for the first six months of 2024 show a visible continuation of market recovery and the company’s business operations. The Group’s operating revenue increased by 21.6 percent compared to the same period last year, amounting to EUR 80.30 million. At the same time, the parent company achieved operating revenue of EUR 62.53 million, representing an increase of 26.1 percent. The revenue growth has been largely influenced by new projects whose serial production started during the year.

Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) at the Group level amounted to EUR 6.52 million, which is an increase of 23.6 percent compared to the first six months of last year. EBITDA in the parent company increased by 44.5 percent, amounting to EUR 4.56 million. The Group’s net profit for the first six months amounted to EUR 1.82 million, representing an increase of 43.7 percent in relation to the comparative period.

“The achieved results are based on the successful implementation of new projects whose serial production started. Our industrialization and project activities remain in full swing. A serial production for an additional six projects will start by the end of the year, and the projects which started in the first half of the year are moving successfully towards reaching the contracted quantities. Simultaneously, our sales activities are very intense, strengthening our position and contributing to further revenue growth. During the reporting period, we sealed new deals worth EUR 9.2 million, and in the second half of the year, we expect this trend to continue and new additional deals to be signed,” said Marinko Došen, President of the Management Board of AD Plastik Group.

Investments in development, specific equipment, and returnable packaging for new projects continue, while a reduction in indebtedness compared to the end of last year is also recorded.

“Our commitment to maintaining financial stability, increasing capacity utilization, and growing profitability remains unchanged and we believe that the continued implementation of new projects, intense sales activities, and our strategic focus on development and quality will contribute to the continuation of positive business trends. We are sure that our knowledge and experience can lead to even greater success and ensure stable and prosperous growth for our company. We look to the future with optimism, aware of the challenges and opportunities that we must overcome,” said Došen.

The second day of the first Lider Financial and Investment Forum brought together numerous relevant stakeholders of the domestic financial and real sector, and it was marked by the award ceremony for the best small, medium and large production investments in Croatia.

AD Plastik received a special recognition for continuous investment, and the award was accepted by the Management Board Consultant, Katija Klepo, who also participated in the panel “Who invests in what and how to choose”.

“This year, we applied an investment in the development of exterior products, which are strategic products on which we base the company’s planned growth. The value of the investment was over EUR 2.5 million, which primarily refers to tools for injection molding and additional equipment for vibration and ultrasonic welding. Although the customer initially demanded the use of gluing and hot air technology, we proved all the advantages of vibration and ultrasonic welding compared to the planned one. By replacing the aforementioned technology, labor costs, electricity consumption and risks have been reduced, and the positive impact on the overall carbon footprint is especially important. With this, we have strengthened our relationship with the customer, ensured good references and future inquiries”, said Katija Klepo, Relations with State Institutions and Funds Consultant. Investments are increasingly important to domestic production companies, and concrete examples could be heard as part of the panel where Klepo highlighted the importance of investing in the modernization of production capacities and the demandingness of the automotive industry in terms of sustainability and energy-efficient technologies.

Murat Ayhaner is the new managerial reinforcement of AD Plastik Group who joined the team as Chief Technology Officer (CTO) and he will lead the research, development and project departments. His impressive experience in the automotive industry, where he has been working for more than 34 years as a mechanical engineer in the field of engineering, makes him a star of the automotive industry that we rarely meet in this areas.

Until recently, he was one of the key figures in the research and development of Tofaş in Turkey, one of the leading industrial concerns and car manufacturers co-owned by Stellantis. Starting 27 years ago with the construction of infrastructure, recruitment and staff development, Mr. Ayhaner has created the research and development department of Tofaş from the very beginning, which is what that company is most recognized for today.

He managed numerous international projects for the FCA Group, today’s Stellantis, and thus spent a large part of his career in Italy. Mr. Ayhaner actively participated in European research projects and value optimization activities and built an excellent network of contacts within the industry. He is a lecturer at the University of Istanbul in the course Basics of the Automotive Industry. Mr. Ayhaner has a master’s degree in mechanical engineering, and during his career he has attended, and himself held, a number of professional educations in the field of automotive industry development and staff management.

Murat Ayhaner brings rich experience and expertise in the areas of vehicle design and development, project and team management, as well as development of engineering solutions. With his visionary solutions and the skills he possesses, he will certainly make an excellent contribution to the future and to the improvement of the development of AD Plastik Group, which are aspired to. Welcome to the team!

Upravo objavljeni rezultati poslovanja AD Plastik Grupe za prvo tromjesečje 2024. potvrđuju nastavak oporavka kompanije i automobilske industrije. U odnosu na isto razdoblje prošle godine, poslovni prihodi Grupe porasli su za 28,1 posto, a na razini matičnog društva viši su za 34,6 posto. Osnovni razlozi rasta većim su dijelom vezani uz ranije najavljivani početak realizacije novih projekata i s njima povezanih prihoda.

Dobit prije kamata, poreza i amortizacije (EBITDA) iznosi 3,69 milijuna eura na razini Grupe i 31,9 posto je viša od one ostvarene u prvom tromjesečju prošle godine. EBITDA na razini matičnog društva viša je za 27,2 posto i iznosi 2,81 milijun eura. Na razini Grupe ostvarena je neto dobit od 1,07 milijuna eura, što predstavlja rast od 57,8 posto u odnosu na usporedno razdoblje.

„Iako je ova godina u znaku početka serijske proizvodnje i to dvadeset i jednog novog projekta, njihov puni utjecaj na profitabilnost i iskorištenost kapaciteta bit će razvidan u zadnjem tromjesečju ove godine, odnosno u sljedećoj godini. Za većinu projekata planiran je početak serijske proizvodnje u prvoj polovini godine, ali njih šest će početi sa svojom serijskom proizvodnjom u zadnjem tromjesečju, kada će i ranije započeti projekti dosegnuti razine ugovorenih količina proizvodnje. Spremni smo i u potpunosti usredotočeni na industrijalizaciju te kvalitetnu pripremu i realizaciju navedenih projekata“, izjavio je predsjednik Uprave AD Plastik Grupe Marinko Došen.

Uz ispunjenje povećanih zahtjeva kupaca, rast iskorištenost kapaciteta i bolju troškovnu efikasnost, tijekom izvještajnog razdoblja usmjerenost kompanije i dalje je bila na uspješnoj realizaciji novih projekata. Pripreme za serijsku proizvodnju i industrijalizacijske aktivnosti u punom su jeku, što se odražava na angažman kadrova, iskorištenost proizvodnih kapaciteta za provedbu proba, povećane troškove i zaduženost. Smanjenje zaduženosti očekuje se s početkom serijske proizvodnje svih projekata što je planirano do kraja godine.

Prodajne aktivnosti kompanije su i dalje intenzivne i usmjerene na europsko tržište, a trenutno su u tijeku pregovori i ponudbene aktivnosti. „Osnovni ciljevi u narednom razdoblju i dalje su nam očuvanje financijske stabilnosti, povećanje iskorištenosti kapaciteta i profitabilnosti te uspješna realizacija ranije navedenih projekata. Pritom, snažno smo usmjereni na unaprjeđenja u područjima razvoja i automatizacije procesa. Iako su izazovi i dalje prisutni, odlučni smo u svojim nastojanjima i imamo jasnu viziju jačanja svoje pozicije na europskom tržištu automobila i prilagođavanja novoj epohi industrije“, rekao je Došen.

The seventh Integrated Annual Report of AD Plastik Group has been published, containing all important information about the business in 2023. An integral part of the integrated report are reports on business operations and sustainability, as well as annual financial statements that enable all stakeholders to learn more about the social and environmental aspects important to the company and its business operations.

AD Plastik Group has been reporting on sustainable business since 2012, and in its report, it presents in detail the business and sustainability risks that enable a better understanding of business and the industry as a whole. All key sustainability indicators have been presented, and significant progress has been made in the internal understanding of sustainable business as the only possible path to a successful future. By continuously raising awareness of the importance of sustainable business, results are achieved that generate added value to society, the environment, and the economy. The business results achieved in the observed period have grown, and despite the challenging market environment, the improvement of sustainable business continues in all segments.

„The automotive industry has been undoubtedly and unstoppably changing, and the external influences we have witnessed in recent years have further accelerated the transformation towards connected, sustainable, and safe mobility. After several years of uncertainty, we can finally say that there is a noticeable positive turn in the automotive market. The priority of the automotive industry is to reduce the weight of the vehicle, which is why polymer materials are used more and more. This is an opportunity we recognize to expand our product range and customer portfolio. We are determined in our promise to be leaders in sustainable development and responsible business, and accordingly we will continue to invest efforts and find innovative solutions to realize this. We are ready to take a leading role in the transformation of the industry towards a more sustainable future because we believe that caring for the environment is not only a prerequisite for success, but also a moral obligation of every organization in today’s society,“ said Marinko Došen, President of the Management Board of AD Plastik Group.

In 2023, AD Plastik Group also achieved significantly better financial results than the year before, and the primary reason for this is the increase in customer orders due to normalization in supply chains and purchase of semiconductors and deliveries for new vehicle models. There was a positive impact on capacity utilization, and along with the normalization of energy sources and material prices, it was also evident in the trend of margins and profitability, despite inflationary pressures. „Overall, the report is informative and plentiful with material indicators in all three observed areas – economic, environmental, and social. Considering the amount and structure of data that give a clear picture of the effects in the area of sustainability and plans for future goals, it can be an exemplary example of quality reporting on sustainability,“ states the opinion of HR BCSD, which verifies the non-financial part of the company’s report.

An important meeting was held at the Faculty of Economics in Split, which brought together key actors of the central banking sector. The 2024 meeting of the Regional Governors was organized by the Croatian National Bank and Faculty of Economics in Split, and after the introductory lecture by the director of the European Department of the International Monetary Fund, Mr. Alfred Kammer, and a very interesting discussion at the round table “Banks and consumers amid high, although declining inflation and rising interest rates”, the Governors officially visited the AD Plastik Group factory in Solin.

“It was our privilege to host the Governors, to show them first-hand the complexity and importance of the sector in which we operate, and to share our experiences with them. We briefly introduced our guests to the company’s business operations, research and development activities, as well as our production facilities. The automotive industry greatly contributes to economic growth and the development of innovative technologies in the EU, but it is also extremely investment-intensive, so it was interesting to hear the thoughts of those most knowledgeable”, said the President of the Management Board of AD Plastik Group, Marinko Došen.

“It was a great pleasure for me to give my colleagues, Governors from the region, the opportunity to learn about the work of an export and innovative company like AD Plastik Group,” said the Governor of the Croatian National Bank, Boris Vujčić.

The unaudited financial statement of AD Plastik Group for the year 2023 was published, in which significantly better results were achieved than the year before. The Group’s operating revenue increased by 17.3 percent and amounted to EUR 129.22 million, while revenue in the EU and Serbian markets was 20.5 percent higher and its share in the Group’s total revenue has been growing, as planned, amounting to 88.3 percent.

The increase in customer orders due to the normalization of supply chains and procurement of semiconductors as well as the delivery of new vehicle models indicate the long-awaited start of the recovery of the automotive market. EBITDA amounted to EUR 7.72 million at the Group level and was significantly higher than the one achieved the year before, and the net loss of EUR 1.1 million is also a positive shift compared to the loss of EUR 9.7 million achieved the year before.

„After several years of uncertainty, we can finally say that there is a noticeable positive turn in the automotive market. Accordingly, the orders of our customers have been growing, and the production of new vehicle models is also starting. In the past year, we had 30 active projects, of which three have started, and we expect the start of serial production of another 18 projects in 2024. At the same time, our sales activities are maximally focused on better capacity utilization and sealing new deals. During 2023 we sealed new deals worth another EUR 112 million, which is a total of EUR 317 million of new sealed deals in the last two years. This is the path we will certainly continue to follow in the coming periods,“ said the President of AD Plastik Group’s Management Board, Marinko Došen.

The previously mentioned increase in customer orders had a positive impact on capacity utilization, and along with the normalization of energy source and material prices, a positive impact was also evident on the movement of margins and profitability, despite inflationary pressures. Along with the successful realization of increased customer demands, better capacity utilization, and cost efficiency, the company’s focus was mostly on the successful realization of development and industrialization activities.

The preparation of new projects, which marked the past year, required additional investments in specific equipment and temporary financing for the production of tools, which is why the indebtedness increased, as expected. However, the cycle of deleveraging usually begins with the start of serial production of new projects, which can be expected in the following periods. „The start of serial production of eighteen new projects is ahead of us, and we are fully focused on their successful implementation, which will have a positive impact on the company’s revenue and profitability in the coming periods. At the same time, we pay special attention to the research and development of new products with a higher level of complexity, in order to improve competitiveness, and our status as a reliable and quality partner. The new year has started with quiet dynamics, ambitiously and optimistically, and I believe that good preparation and foundations we have set are a prerequisite for further strengthening our position in the global market,“ said Došen