Significantly better business results
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
