Warsaw, August 25, 2022 (ISBnews) – Ciech recorded PLN 44.86 million of consolidated net profit attributable to shareholders of the parent company in Q2 2022 against PLN 7.98 million of profit a year earlier, the company said in the report. The operating profit amounted to PLN 85.68 million compared to PLN 100.6 million profit a year earlier. Consolidated sales revenues amounted to PLN 1,236.29 million in Q2 2022 compared to PLN 834.71 million a year earlier. In Q1-Q2 2022, the company had PLN 149.17 million of consolidated net profit attributable to shareholders of the parent company compared to PLN 192.41 million of profit a year earlier, with sales revenues of PLN 2,478.85 million compared to PLN 1,695.79 million a year earlier. “The activities of the Ciech Group in the first half of 2022 focused on four industry segments: Soda, Agro, Foam, and Krzemianach. These segments account for over 90% of the group’s sales revenues. The structure of revenues broken down by segments has not changed significantly compared to 2021. Invariably, the largest share in revenues was the sale of products of the Soda Segment, ie 70.8% ”- reads the report. In the Soda Segment, year-on-year sales revenue increased by PLN 680 million (63.3%). In the Agro Segment, sales revenues increased year-on-year by PLN 68.9 million (25.0%). In the Foam Segment, sales revenues decreased year-on-year by PLN 19.4 million (-9.7%). The Silicates Segment reported a year-on-year increase in revenues by PLN 100.7 million (94.8%), it was mentioned. After the first half of 2022, the gross profit on sales of continued operations amounted to PLN 527 647 thousand. PLN, and in the same period of the previous year 391 999 thousand. zloty. On the other hand, the operating result related to continued operations was at the level of PLN 217,050 thousand. PLN and 237 847 thousand. PLN for the comparable period. In the first half of 2022, there were no discontinued operations in the Ciech Group, while in the comparable period, the gross profit on sales on discontinued operations amounted to PLN 13,256 thousand. PLN, and the operating result 6,927 thousand. PLN, was also given. The presented results were positively influenced by:
• In the Soda Segment, a successful process of temporary increase in contract prices to compensate for the dynamically growing prices of energy raw materials and EUA.
• Optimization of the use of the local gas source in the German plant, limiting the negative impact of rising gas prices on the world markets.
• Growing demand for soda due to the continued reduction in imports from other continents to Europe.
• IFS certification for cooking salt obtained.
• In the Agro Segment, the market success of the new Halvetic herbicide, based on the innovative BGT technology.
• High demand for herbicides resulting from stocking up of distributors before the season.
• In the Foam Segment, the unification of the product portfolio and its positive reception by customers, as well as successful price negotiations with suppliers, ensuring a competitive price and availability of raw materials.
• In the Silicates Segment, improving the quality of glassy sodium silicate thanks to the commissioning of a new, modern furnace in Żary and a stable demand for silicates despite restrictions in the automotive industry.
• Higher sales of potassium glaze and potassium water glass due to the reduction of total production capacity in Europe, listed. The presented results were adversely affected by: • Unusually dynamic growth in the prices of energy resources (coal, gas, electricity) on the global market.
• Persistently high prices of EUA certificates.
• Higher costs of transporting raw materials and finished products.
• Increase in the prices of raw materials for the production of plant protection chemicals, mainly due to high demand in Asian markets.
• Decline in profitability in the furniture industry, putting price pressure on foam suppliers.
• Deterioration of the situation in the automotive industry, which directly determines the demand for flexible polyurethane foams.
• A higher level of fixed costs due to the constantly growing inflationary pressure, Ciech also reported. For continued operations, the EBIT margin for the first half of 2022 was 8.8% (14.0% the year before), and the EBITDA margin was 16.9% (24.0% the year before). The EBIT profitability excluding one-off events for the first half of 2022 was 9.3% (14.1% the year before), and the EBITDA profitability excluding one-off events was 17.4% (24.2% the year before), also stated in the report. “The lower level of the net result compared to the corresponding period of 2021 was due to, inter alia, With:
• finalization of the sale of Ciech Żywice Sp. z o. o. in the first quarter of 2021 – the consolidated result on discontinued operations of the Group, including the sale of the company’s shares, amounted to nearly PLN 70 million,
• higher level of interest costs,
• lower level of other operating income compared to the comparable period due to the sale of CO2 emission rights in Ciech Soda Romania SA in the first quarter of 2021 ”- commented the company. On a standalone basis, the net profit in Q1-Q2 2022 amounted to PLN 278.78 million compared to PLN 72.52 million in profit a year earlier. The Ciech Group is one of the leaders of the European chemical market. It is the second largest producer of soda ash (used in the production of glass) in Europe and the only producer of this substance in Poland. Since 2005, Ciech has been listed on the Warsaw Stock Exchange. Its consolidated revenues amounted to PLN 3.46 billion in 2021. (ISBnews) Follow us on Google News. Search for what’s important and stay up to date with the market! Watch us >>
