Thrace Plastics: Sales increase to €186.5 million in the first half of 2024

186.5 million euros amounted to the first half of 2024, the Group’s turnover of 180.1 million euros in the first half of 2023 with an increase of 3.5%, mainly due to the increase in sales volumes by 9.1%, as announced today (18.9.2024). During the first half of 2024, EBITDA of the Thrace Plastic Group amounted to 24.5 million euros, increased by 1.9% compared to the first half of 2023, where EBITDA had reached 24.1 million euros. According to the Communication, the Group manages to increase the volumes sold, achieving larger market shares, despite low relative demand, fully compensating for the impact of the reduced average sales prices and increased costs on the different cost categories. With regard to the Group’s liquidity levels and the trading cycle of subsidiaries, there was no negative effect or change during the first half of the year. More specifically, the Group’s net lending amounted to 25.3 million euros, showing an increase, compared to the end of 2023 (net loan fee of 2023 including forward deposits: EUR 16,3 million), due to (a) the seasonality of sales, resulting in increased demand for working capital, (b) distribution of dividends to shareholders and (c) outflows for the implementation of the current investment plan. At the same time, the implementation of the Group’s planned investment plan, amounting to 30m euros on a cash basis, continues smoothly, with investments made at the Group’s premises in Greece and abroad in both sectors of activity. With regard to the prospects for 2024, the Group’s management estimates that for the first nine months of 2024 EBITDA will range at corresponding levels, compared to the first nine months of last year, in total sizes. Having entered the second half of the year, markets and economies have comparable characteristics to the first half. Inflation shows signs of limited discharge, interest rates remain still increased although the first reductions were made by central banks, while the prices of the first and auxiliary materials remain relatively high despite low demand. However, the increasing tension in the Middle East and the absence of a truce still creates uncertainty and pressure on markets. At the same time, in the third quarter there were significant increases in energy costs, especially in Southeast Europe. With regard to annual profitability for 2024, the administration took into account the strong uncertainty about the progress of the global economy and, in particular, Europe’s assessment that the EBITDA of 2024 would range to higher levels than the previous year. Nevertheless, although it does not adjust its initial annual objectives, the crisis in the Middle East and the wider geopolitical instability, forms new uncertainty conditions, the impact of which is impossible at the time to determine, therefore, any estimate of annual profitability is extremely precarious, while the Group’s management monitors market developments, so that it is able to implement the actions required, so as not to deviate from its design. Commenting on the financial results of the semester, Dimitris Malamos, CEO of the Thrace Plastic Group, noted: “The first half of 2024 was undoubtedly strong for the Group, achieving an increase in volumes, sales and operating profitability. More importantly, however, this performance is achieved in conditions 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 are in particular experiencing stagnation and recession. We, however, work to achieve the best possible performance, remaining committed to our wider strategic planning.”