New projects ensure sustainable growth
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.
