Romania's Promateris 9-mo net profit plummets 78% y/y

The net result was impacted by a strong increase in spending prompted by higher prices, Promateris said in an unaudited report filed with the Bucharest Stock Exchange on Monday.

The sharp increase in interest rates also had a major impact on the financial results, in the context of sustained investments in recent years, the company added.

During January-September 2022, the company's turnover edged up by an annual 0.3% to 136.3 million lei, while earnings before interest, taxes, depreciation and amortisation (EBITDA) fell by 36% year-on-year to 14.3 million lei.

"2022 was a year of challenges, given the instability of the macroeconomic context, but also of rapid increase of costs for raw materials, electricity and financing," Promateris CEO Tudor Georgescu said.

"Our future plans include an organic growth component, but we also consider M&A operations to enter new markets and strengthen our leading position in CEE markets."

By the end of 2022, the company aims to invest in the development of its bioplastics and bio-based granules capacities for strengthening its position in the regional market.

Founded in 1991 as Prodplast, the company underwent a process of rebranding to Promateris in 2020. Promateris specialises in the production of environmentally friendly packaging and currently employs 131.

Its shares traded 4.32% lower at 13.3 lei by 1604 CET on Tuesday, data from the Bucharest Stock Exchange showed.

(1 euro=4.9134 lei)