Continuous profitability growth

High quality and successful business in the demanding automotive market ensures AD Plastik Group the continuation of the trend of improving the financial position also in 2017. The second quarter showed a significant reduction in credit indebtedness by HRK 65.5 million compared to the end of 2016. In the published report for the first six months the Group’s operating revenue amounted to HRK 531.3 million, which represented an increase of 3.7 percent compared to the same period of the previous year. At the same time, the growth in operating expenses was considerably lower.

„Good results achieved in the first six months are the result of a clear strategy and vision of development that we set two years ago, successful production and thoughtful and quality cost management. EBITDA increased by 13.8 percent compared to the same period last year, and the Group’s net profit for the first six months amounted to HRK 38.9 million,“ said Marinko Došen.

The Russian market has been gradually stabilizing, which is confirmed by the growth in operating revenue in this market by 18.8 percent, and the share of operating revenue from the Russian market in the overall revenue of the Group has increased. Significant strengthening of the kuna against the euro negatively affects the level of reported revenue in the EU and Serbia markets, although the volume of production achieved was higher than in the same period last year. For the first six months of 2017 EBITDA amounted to HRK 85.4 million, while EBITDA margin amounted to 16.07 percent.

„In the observed period, we have also sealed new deals with our customers Ford and Hella worth over EUR 30 million. This allows us to continuously increase the market value of the company, so in the past period the value of our share has been growing. The strategy of increasing efficiency of production and cost rationalization has been confirmed as a long-term viable and sustainable direction,”  said President of the Management Board Marinko Došen.