Ellastron Group's turnover in 2023 increased slightly from € 181.0 million to € 182.9 million, despite a notable 24% increase in sales volume. This was caused by a number of factors, including the ongoing pressure on international sales prices due to the EU's weak economic growth, the crisis in private construction activity in the Chinese market, unstable international geopolitical conditions, and the impact of the EU's economic downturn.

However, against the unfavourable economic environment, Elastron Group recorded strong growth in sales volume, with the main pillars of demand being the increased construction activity in the Greek market and the strong growth of its exports. However, the downward trend of sales prices during the financial year, combined with the lag in the recycling of stocks and materials, the increase in operating costs as a consequence of the ongoing inflationary pressures, and the increase in borrowing costs due to the rise in the Euribor interest rate, led to a reduction in operating profitability margins and to the group's pre-tax loss.

In particular, gross profit amounted to € 16,1 million or 8.8% of sales, compared with € 27,4 million or 15.2% of on sales in 2022. Earnings before interest and taxes (EBIT) amounted to € 0.5 million, compared to € 16.6 million in 2022.

FORECAST

For 2024, it is difficult to make safe forecasts for the course of results, taking into account the conditions of intense uncertainty and volatility in the international economic and geopolitical environment. During the first quarter of the current year, the group's sales volume is showing strong growth, driven mainly by the construction sector, in particular logistics projects, tourism projects, large-scale private projects, industrial manufacturing, trade, and infrastructure. However, international prices of raw materials were down due to limited demand within the EU, which affected selling prices, which fell further. For the remainder of the year, management's outlook for the group's demand and results is cautiously optimistic given the prevailing strong volatility market volatility and possible negative developments in the international geopolitical environment. More specifically, the recent tension in the Middle East region and the risk of a further escalation are expected to sustain the inflationary pressures and delay the start of an interest rate deceleration, events that are expected to reduce growth forecasts in both Greece and the EU.

In the Greek market, however, the planned private investment in the construction sectors, as well as the resurgence of private investment in the shipbuilding and ship repair sectors, together with the need to accelerate the absorption of the resources of the RSF, are expected to maintain the positive growth rate of the sector and contribute to further increasing the group's sales volume. At the same time, the prices of raw materials are showing signs of stabilisation and, on the basis of the indications to date, may rise slightly, which, in combination with current replacement prices of inventories, will lead to an improvement in operating profitability margins.