New deals as a good foundation for further growth

Report by Management of AD Plastik Group for the first nine months of 2016 shows continued work on optimizing business efficiency. Operating revenue of the Group in the reported period amounted to HRK 736 million, which was 4.85 percent less than in the same period of previous year, largely due to the decline in sales in the Russian market. It is important to point out that the decline in Group revenue in the Russian market was lower than the decline in car sales in Russia for the first nine months.

„Sales in the European market were slightly lower due to lower orders from the customer Hella, but the revenue was almost at the level of last year’s. In the Russian market revenue decreased by 10.7 percent, but this is less than the total decline in car sales for the first nine months in Russia. Although car sales in the Russian market continue to decline, the market has gradually been stabilizing“, said the President of the Management Board Marinko Došen.

EBITDA at the Group level amounted to HRK 99.4 million, and compared with HRK 87.7 million realized in the same period of the previous year, it indicated a significant improvement in cost efficiency. Obligations towards suppliers and financial institutions in the first nine months decreased by HRK 53 million, which was a noticeable reduction in debt.

„Optimizing business efficiency, especially in the Russian Federation’s market, and reducing total liabilities are key targets this year. The new deals sealed over the past few months for Fiat and Volkswagen are a proof of the quality of the AD Plastik Group. Quality and compliance with set deadlines are exactly what makes the difference in today’s automotive world. New deals, realization of which is planned in the next year, are a very good foundation for planning further growth and development of our company,“ said Marinko Došen.