Net profit of the Group records steady growth
Published report of the AD Plastik Group for the first half of 2016 indicates that net profit at the Group level has been steadily growing despite a slight decrease in revenue.
„Despite somewhat lower realization, our business results are in line with the plan and realized net profit has increased compared to the first half of last year and it amounted to HRK 28.1 million. Although the Group’s operating revenue has still been declining in the Russian market, good news for our business is strengthening of a currency and the recovery of the ruble as well as cessation of the drop in car sales in the Russian market. This will certainly have a positive impact on the business of our factories in Russia. In addition, the European Union market has been constantly growing, thus our customers have recorded a double-digit sales growth. This is also evident in our business results. In the first half of the year we realized operating revenue amounting to HRK 512.2 million which was by 2.42 percent less compared to the same period last year at the Group level, while in Croatia revenue grew by 1.75 percent,“ said Marinko Došen, President of the Management Board of AD Plastik.
EBITDA amounting to HRK 75 million was realized in the first half of the year at the Group level, representing a significant increment compared to the same period last year. Despite somewhat lower sales volume, EBITDA growth indicators in the amount of 20.39 percent indicated a constant improvement in cost efficiency and profit realized indicated a further increase in profitability. Further EBITDA growth, along with optimization of business efficiency and reduction in credit obligations are one of the key objectives of the company’s management for the rest of the year.
„Renault has been increasing capacity utilization in the Revoz factory where they are planning to transfer production of their best-selling vehicle Renault Clio. As Renault is one of our biggest customers and we have successful long-term cooperation with their most efficient factory in Novo Mesto, we believe that the transfer of Clio production to Slovenia will have a positive impact on our business as well. We are currently competing for product complect for the new Clio, which would enable us to fully utilize capacities in our factories in Zagreb, but also possibly to expand. This project would provide us with growth already from the next year. Further revenue growth in the existing and new markets, stable financial operations and strengthening the company’s attractiveness in the investment and financial public are the key goals in the new mandate of the Management Board and I am convinced that we will achieve them successfully,“ said Marinko Došen.
