August 24 (SeeNews) - Romanian renewable packaging manufacturer Promateris [BVB:PPL] said that its net profit halved to 4.87 million lei ($989,500/ 997,100 euro) in the first half of 2022.
The net result was impacted by an increase in depreciation expenses due to the acquisition of new equipment, which were not immediately offset by an increase in income and margin, Promateris said in its preliminary first half report submitted to the Bucharest Stock Exchange, BVB, on Tuesday.
Also, the market context and the economic situation caused a steep rise in interest rates, the company added.
Turnover edged up 3.5% on the year to 87.7 million lei during January-June, limited by a less favourable market context in the first part of the year, as well as by significant increases in supply costs.
The company's earnings before interest, taxes, depreciation and amortisation (EBITDA) fell by an annual 17% to 11.8 million lei in the first six months of 2022, while EBITDA margin was 13.4%.
"The first semester of 2022 was a challenging one, marked by the war in Ukraine, the rapid increase in inflation, and interest rates. However, we are satisfied with the recorded results, as we consolidated the EBITDA margin through the bioplastic recycling line, where we recycled 100% of the bio-based industrial waste, reintroducing it into production," Promateris CEO Tudor Georgescu said in a separate company press release.
"Regarding future plans, we have a series of projects underway. These will continue the development of the group's portfolio of products, new markets entries, the launch of a new brand of recycled plastic packaging, but also the development of industrial applications."
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 staff.
In May, the company announced it is investing 1 million euro ($992,400) to develop a 1MWp photovoltaic project at its Buftea factory.
Its shares traded 0.71% higher at 14.1 lei per share at 0913 CET on Wednesday, on the Bucharest Stock Exchange.
(1 euro = 4.8851 Romanian lei)