Business operations in extraordinary circumstances
Given the extraordinary circumstances and the Russian-Ukrainian crisis, increased public interest in the company’s business operations is expected, so hereby we would like to inform our stakeholders about the current situation.
AD Plastik Group has two factories in Russia in which it generates about 25 percent of its revenue, and which produce components exclusively for the Russian market. Current circumstances complicate their business operations and the negative effects are evident, primarily through a significant weakening of the Russian ruble exchange rate, disruptions in the supply chain and the announcements of a temporary shutdown of some of the main customers in the Russian market. Cash flows from Russia to the parent company are not a significant business item, and the liquidity of the parent company, including available unused credit lines, is more than satisfactory.
It is very difficult to predict the final impact on a company’s economic activities and operations due to a range of uncertainties and unanswered questions. However, despite the circumstances, the stability of AD Plastik Group’s business operations is not endangered. Development of the situation is being monitored, various action scenarios have been developed and care is being taken on a daily basis to minimize risks and consequences. While in Russia the business is adapting to the new circumstances, in the European market the production processes are running smoothly and in accordance with the business plans, as well as commercial activities related to sealing new deals. “The situation is extremely demanding and uncertain, but AD Plastik Group is a stable company that has proven its resilience several times in history. We have shown that also in the pandemic, and I believe it will be the same now. We are aware that the period ahead of us is not an easy one, but the automotive industry needs to be considered in the long run. We are currently focused on reducing the impact of the crisis on business, maintaining sustainability and financial stability. At the same time, the realization of our projects in the European market is in progress, we have been working intensively on the development and expansion of the product portfolio and we are discussing new deals. We are ready for various scenarios that may require difficult decisions, but we are confident in the survival of AD Plastik Group,” said the President of the Management Board Marinko Došen.
