Thrace Plastics: Positive operating performance in 2023, profitability under pressure

On a downward trajectory in 2023 were the sizes for the Plastics of Thrace as the turnover amounted to 345.4 million reduced by 12.4% and pre-tax profits amounted to 21.336 million reduced by 33.5% in relation to 2022. Proposed annual dividend of 0.23 euros per share.

It is noted that the company’s activity had received a big boost in previous years due to the pandemic.

The announcement in detail:

The 2023turnover amounted to 345.4 million against 394.4 million 2022a consequence 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 vs. 109.2 thousand tons in 2022), under unfavorable external conditions, such as lower demand in key sectors of the economy (construction, agriculture) and in important markets where the Group operates (European Union, United Kingdom and USA).

The total EBITDA was formed at 44.0 million enhanced by 2.4%compared to 43.0 million which amounted to the EBITDA of the year 2022 from the traditional product portfolio. It is noted that the 2022 EBITDA has been affected by extraordinary profits of €5.3 million, resulting from the release of COVID-19 products, forming 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 the maintenance of the volumes sold is also a strong indication of the potential of the Group to further improve its financial performance in the future.

Regarding the Group’s liquidity levels, the Group’s net borrowing amounts to 16.3 millionincluding term deposits of the amount 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 has been completed, with the further expansion of the Greenhouses by 65 acres.

In particular, the table presents the basic financial figures of the Group for 2023, from continuing activities, in relation to 2022:

Group Outlook

Regarding the annual profitability for the 2024, the Management, taking into account the intense uncertainty regarding the course of the global economy and in particular 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 the first quarter of 2024, it is estimated that the Group’s operating profitability (EBITDA) in absolute terms will be higher than the first quarter of the previous year by an order of magnitude of 5%-10%, as a result of the actions they are already taking country by the managements of the companies and the sales teams, but also of the performance of the 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, stated: “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 continuing 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 the Plastics Thrace Group will hold a 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 conference call will be communicated in time with a newer announcement from the Company. on her website.