Thrace Plastics Group announced a 3.5% increase in sales to €186.5 million and an improved EBITDA of €24.5 million for the first half of 2024.
Specifically, the company said that in the first half of 2024, the group's operating turnover amounted to €186.5 million, compared to €180.1 million in the first half of 2023, marking an increase of 3.5%, which was primarily due to a 9.1% increase in volumes sold.
In the first half of 2024, EBITDA amounted to €24.5 million, up 1.9% compared to the first half of 2023, when EBITDA amounted to €24.1 million. As is evident, the group is managing to increase volumes sold, achieving larger market shares despite relatively low demand, fully offsetting the impact of relatively lower average selling prices and increased costs in the various expense categories, the statement said.
In terms of the group's liquidity levels and the turnover of the subsidiaries, there was no negative impact or change in the first half of the year. More specifically, the Group's net borrowings amounted to €25.3 million, showing an increase compared to the end of 2023 (net borrowings at the end of 2023 including term deposits: €16.3 million), due to (a) the seasonality of sales, resulting in increased working capital requirements, (b) the distribution of dividends to shareholders, and (c) the outflows for the implementation of the current investment plan. The significantly low level of net debt demonstrates the group's strong financial position, the quality of its customer portfolio, and its ability to invest while keeping net debt low, it said.
At the same time, the implementation of the Group's planned investment plan, amounting to €30 million on a cash basis, continues smoothly, with investments made in the Group's facilities in Greece and abroad in both of its operating sectors.
PERSPECTIVES
Regarding the outlook for 2024, the group's management estimates that for the first nine months of 2024, EBITDA will be at similar levels, compared to the first nine months of the previous year, in absolute terms.
Having entered the second half of the year, the markets and economies show comparable characteristics to the first half. Although central banks have begun to lower interest rates, inflation is still showing signs of limited easing, and raw and auxiliary material prices are still relatively high despite low demand. However, escalating tensions in the Middle East and the absence of a ceasefire continue to create uncertainty and put pressure on markets. At the same time, the third quarter saw significant increases in energy costs, especially in Southeast Europe.
Regarding the annual profitability for 2024, management, taking into account the strong uncertainty about the course of the global economy and Europe in particular, had formulated an estimate that EBITDA for 2024 would be higher than in the previous year. However, although not adjusting its original annual targets, the crisis in the Middle East and the wider geopolitical instability are creating new conditions of uncertainty, the impact of which is impossible to determine at this point in time; therefore, any estimate of annual profitability is extremely uncertain, and the group's management is monitoring market developments in order to be able to implement the actions required to avoid deviating from its planning.
CEO STATEMENT
Referring to the financial results for the half-year, Mr. Dimitris Malamos, Group CEO, noted: "The first half of 2024 was undoubtedly strong for the Group, achieving growth in volumes, sales, and operating profitability. More importantly, however, this performance was achieved in an environment of uncertainty, low demand, especially in Europe, and increased costs. The following months of the year are clearly affected by the same difficult conditions, as European markets in particular are facing stagnation and recession. We are, however, working to achieve the best possible performance while remaining focused on our broader strategic plan."
