{"id":413,"date":"2017-10-26T11:52:07","date_gmt":"2017-10-26T11:52:07","guid":{"rendered":"http:\/\/ceo.com.pl\/en\/?p=413"},"modified":"2017-10-26T11:52:07","modified_gmt":"2017-10-26T11:52:07","slug":"ergis-group-results-three-quarters-2017","status":"publish","type":"post","link":"https:\/\/ceo.com.pl\/en\/ergis-group-results-three-quarters-2017\/","title":{"rendered":"Ergis Group results after three quarters of 2017"},"content":{"rendered":"

ERGIS Group, the leader of plastics processing in Central and Eastern Europe, has published financial results\u00a0<\/strong>for the third<\/strong>\u00a0quarter of 2017. The results are not significantly different compared to the preliminary financial results published on October 19th<\/sup>.<\/strong>\u00a0Over the three quarters, t<\/strong>he Group recorded a revenue of PLN 574.7 million (increase of 8.3%), EBITDA level reaching PLN 48.9 million (increase of 0.1%), operating result amounting to PLN 31.3 million (increase of 3.7%) and net profit of PLN 20.4 million (decrease of 3<\/strong>.<\/strong>3%).<\/strong><\/p>\n

In the third quarter\u00a0alone,\u00a0compared to the third quarter of 2016,\u00a0the Group generated revenue growth\u00a0by\u00a011.6% and\u00a0drops of the levels of the following:\u00a0operating profit by 3.3%, EBIDTA by 2.8% and the net profit by 34.4%.\u00a0The profit in the third quarter of 2017 is\u00a0burdened by\u00a0the\u00a0Group\u2019s increased remuneration costs – by PLN 2.8 million (compared to\u00a0Q2 of\u00a02017) and by PLN 5.6 million after the first three quarters of 2017 (compared to\u00a0the\u00a0first three quarters of 2016).\u00a0A\u00a0situation on the raw materials market, particularly\u00a0persisting since the beginning of the year\u00a0high costs of PVC and softeners, also negatively affected the level of the margins. EBIDTA\u00a0of the third quarter is also burdened by the\u00a0costs of organizational restructuring\u00a0of the Group, which amount to\u00a0approx. PLN 500,000\u00a0and the net profit was reduced by nearly PLN 1 million as a result of\u00a0a\u00a0tax asset\u00a0release related to improvement of financial performance of the German companies of the Group.<\/p>\n

FINANCIAL RESULTS \u2013\u00a0DETAILS<\/h2>\n

Financial results of the ERGIS Group after three quarters of 2017 are presented in the table below:<\/p>\n\n\n\n\n\n\n\n\n\n
\u00a0<\/strong><\/p>\n

PLN thousand\u00a0<\/strong><\/td>\n

Q3 2017<\/strong><\/td>\nQ3 2016<\/strong><\/td>\nDynamics<\/strong><\/td>\nQ1<\/strong>\u00a0\u2013\u00a0<\/strong>Q<\/strong>3<\/strong><\/p>\n

2017<\/strong><\/td>\n

Q1 \u2013 Q3 2016<\/strong><\/td>\nDynamics<\/strong><\/td>\n<\/tr>\n
Sales revenue<\/strong><\/td>\n201,237<\/td>\n180,369<\/td>\n+11.6%<\/td>\n574,706<\/td>\n530,759<\/td>\n+8.3%<\/td>\n<\/tr>\n
Operating profit<\/strong><\/td>\n9,098<\/td>\n9,405<\/td>\n-3.3%<\/td>\n31,335<\/td>\n30,228<\/td>\n+3.7%<\/td>\n<\/tr>\n
Gross profit<\/strong><\/td>\n8,009<\/td>\n8,899<\/td>\n-10.0%<\/td>\n28,604<\/td>\n26,185<\/td>\n+9.2%<\/td>\n<\/tr>\n
EBITDA<\/strong><\/td>\n15,061<\/td>\n15,491<\/td>\n-2.8%<\/td>\n48,950<\/td>\n48,911<\/td>\n+0.1%<\/td>\n<\/tr>\n
Net profit<\/strong><\/td>\n4,655<\/td>\n7,095<\/td>\n-34.4%<\/td>\n20,422<\/td>\n21,116<\/td>\n-3.3%<\/td>\n<\/tr>\n
Interest bearing debt<\/strong><\/td>\n162,304<\/td>\n151,981<\/td>\n+6.8%<\/td>\n162,304<\/td>\n151,981<\/td>\n+6.8%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Analysis of the financial results for three quarters of 2017 gives a clear picture. We have recorded a record increase in sales. After three quarters, results achieved from the sales of stretch films from the new investment increased the EBITDA of this sector by over 5 million PLN. Since the introduction of the nanoERGIS\u00ae film to the market, the proportion of stretch film in the Group’s EBITDA has more than doubled to reach over 50% of this factor. These positive results, however, were neutralized by rising labour costs and a significant drop in profitability – especially in soft PVC films and flexible packaging induced by the situation on the market of raw materials. As we expect polymer prices to finally drop and the labour costs get stabilized, we are optimistic about the outlook for the coming year<\/em>\u00a0– said Tadeusz Nowicki, President of the Management Board of ERGIS S.A.<\/p>\n","protected":false},"excerpt":{"rendered":"

ERGIS Group, the leader of plastics processing in Central and Eastern Europe, has published financial results\u00a0for the third\u00a0quarter of 2017. The results are not significantly different compared to the preliminary financial results published on October 19th.\u00a0Over the three quarters, the Group recorded a revenue of PLN 574.7 million (increase of 8.3%), EBITDA level reaching PLN […]<\/p>\n","protected":false},"author":1,"featured_media":414,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[9],"tags":[2694,226,225],"class_list":["post-413","post","type-post","status-publish","format-standard","has-post-thumbnail","category-companies","tag-ebitda","tag-ergis","tag-tadeusz-nowicki"],"jetpack_publicize_connections":[],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/posts\/413","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/comments?post=413"}],"version-history":[{"count":0,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/posts\/413\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/media\/414"}],"wp:attachment":[{"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/media?parent=413"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/categories?post=413"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/tags?post=413"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}