Thrace Plastics announced sales of €345.4 million, EBITDA of €44.0 million, and earnings before tax (EBT) of €21.3 million for 2023. The company proposes a dividend of ~€0.23 per share (gross amount), which, after deducting the prepayment already paid, forms a dividend balance to be distributed of ~€0.17 per share.
SPECIFICALLY
EBITDA amounted to €44.0 million., an increase of 2.4% compared to FY2022 recurring EBITDA of €43.0 million . (from the traditional product portfolio). It is noted that FY2022 EBITDA had settled at €48.3 million., including one-off profits of €5.3 million . from the COVID-19 products. The improvement in the level of recurring profitability in 2023 clearly demonstrates the ability of the group to achieve stable and recurring profitability while maintaining volumes sold at a similar level compared to the prior year, which is a strong indication of the group's potential to further improve its financial performance in the future.
Regarding the liquidity level of the Group, Net Debt amounted to €16.3 million., including time deposits of €13.3 million. The low level of Net Debt demonstrates the Group's strong financial position as well as the quality of its customer portfolio and its ability to invest while keeping its Net Debt relatively low, distributing at the same time significantly higher dividends compared to pre-pandemic levels. In parallel, from a financial standpoint, the Group has the ability to take advantage of any business opportunities that may arise for further development and growth.
The investment plan of €30 million . on a cash basis has been successfully completed with the implementation of pivotal projects in the two main business segments, in its facilities in Greece and abroad. At the same time, the first stage of the new investment project in Thrace Greenhouses was completed by expanding the greenhouses by 65 acres.
PROSPECTS OF THE GROUP
Regarding the annual profitability for the year 2024, the Management estimates that, despite the high uncertainty about the course of the global economy and of Europe in particular, the Group’s EBITDA profitability for the year 2024 is expected to fluctuate at higher levels than the ones of 2023. However, even if the Company does not revise its initial annual target, the recent crisis in the Middle East creates 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 market developments to be able to implement the necessary actions in order not to deviate from its plan.
For the first quarter of 2024, the management estimates that the group's operating profitability (EBITDA), in absolute terms, will edge 5%–10% higher than in the first quarter of the previous year. This is due to specific actions taken at the group level, specifically by the sales teams as well as the subsidiaries’ management teams, but also to profits generated from new product categories and partnerships. Furthermore, there is stable demand in the sectors of infrastructure and packaging and an increase in demand in the agricultural sector, whereas there is still weak demand in the construction sector.
Regarding the annual financial results, Mr. Dimitris Malamos, Thrace Group CEO, stated the following: "For another year, Thrace Group demonstrated resilience under unstable conditions, with further enhancement of its operating profitability, maintaining stable volumes sold and a low net debt level while implementing a large investment plan, thus ensuring its long-term leadership position in its operating segments. With sustainability and innovation organically integrated into all of our practices and while investments’ implementation continues dynamically, the group's strategy continues to generate consistent results. Our ongoing target is to increase value within our entire ecosystem: the employees of the group, its customers and suppliers-partners, the consumer and investor communities, and generally society.”.
