Thrace Plastics: Strong operating profitability of 44 million with enhanced recurring EBITDA by 2.4%

PLASTIKA THRAKIS Group announces the main financial results of the year 2023.

Financial Results Year

In 2023, turnover amounted to €345.4 million. against €394.4 million in 2022, a result of the historically high prices of raw materials in the first months of 2022. The Group managed to maintain the sales volume at the levels of 2022 (109.8 thousand tons in 2023 against 109.2 thousand . tons in 2022), under unfavorable exogenous conditions, such as lower demand in key sectors of the economy (construction, agricultural sector) and in important markets where the Group operates (European Union, United Kingdom and USA).

The total EBITDA amounted to €44.0 million, increased by 2.4%compared to €43.0 million in 2022 EBITDA from the traditional product portfolio. It is noted that the EBITDA of 2022 has been affected by extraordinary profits of €5.3 million, arising from the launch of COVID-19 products, shaping the total EBITDA at €48.3 million. The increase in the level of recurring profitability of 2023 clearly demonstrates the resilience of the Group to achieve stable and recurring profitability, while maintaining the volumes sold is also a strong indication of the Group’s potential to further improve its financial performance in the future.

As for liquidity levels of the Group, the Group’s net borrowing amounts to €16.3 million, including term deposits of €13.3 million. The low level of Net Debt demonstrates the strong financial position of the Group and the quality of its client portfolio, its ability to invest while keeping its Net Debt low, while distributing significantly higher dividends, compared to pre-pandemic levels. At the same time, from a financial point of view, the Group has the ability to take advantage of any business opportunity that may arise, for its further development and evolution.

The planned investment plan €30 million on a cash basis has been successfully completed with the implementation of critical projects in the Group’s two main areas of activity, at its facilities both in Greece and abroad, while at the same time the first phase of the new investment in the Thrace Greenhouses was completed, with the further expansion of the Greenhouses by 65 acres.

*Note that 2022 EBITDA, EBIT and Earnings before Taxes (EBT) also include profits from sales of COVID – 19 products amounting to €5.3 million The 2022 comparative EBITDA from the Group’s traditional activities amounted to €43.0 million, therefore the 2023 EBITDA profitability increased by +2.4%.

Group Outlook

In terms of annual profitability for 2024, the Management, taking into account the intense uncertainty about the course of the global economy and especially of Europe, had formulated the estimate that the EBITDA profitability of 2024 will fluctuate at higher levels than the previous year. However, although it is not revising its original annual targets, the recent crisis in the Middle East is creating new conditions of uncertainty, the effects of which are impossible to determine at the given time, therefore any estimate of annual profitability is highly uncertain, while the Management of the Group monitors the developments in the market, so that it is able to implement the actions required, in order not to deviate from its plan.

For first quarter of 2024, it is estimated that the operating profitability of the Group (EBITDA) in absolute figures will be higher than the first quarter of the previous year, by 5%-10% as an order of magnitude, as a result of the actions already taking place by the Managements of the companies and sales teams, but also the performance of new products and partnerships. In particular, at the demand level, there is stability in demand in the infrastructure and packaging sectors, an increase in demand for agricultural sector products, while demand in the construction sector remains weak.

Commenting on the financial results o Mr. Dimitris Malamos, CEO of the Group, said: “The Plastics Thrace Group presented for another year resilient performance under volatile conditions, with further improvement of its operating profitability, maintenance of sales volume, low net debt and high investments that ensure its long-term leadership position in its sectors of activity.

With sustainability and innovation organically integrated into all of our practices and investments to continue dynamically, the Group’s strategy continues to pay off at a steady pace. Our constant goal is to increase the value of our entire ecosystem: the employees of the Group, its customers and suppliers-partners, the investing and consumer public and society in general.”

The Management of Plastic Thrace Group will hold a teleconference (Conference Call), regarding the annual update of the Analysts, regarding the financial results of 2023, on Friday, April 26, 2024. The details of the organization of the teleconference will be communicated in time with a newer announcement by the Company on its website.

For further clarifications or information regarding the content hereof, you can contact the Shareholder Services and Corporate Announcements Department at 210-9875081.