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War in Ukraine almost erases net profit of Croatia's AD Plastik in Q1

Author Annie Tsoneva
War in Ukraine almost erases net profit of Croatia's AD Plastik in Q1 Photo: Croatia's AD Plastik

ZAGREB (Croatia), April 27 (SeeNews) - Croatian manufacturer of plastic products for the automotive industry AD Plastik [ZSE:ADPL] said on Wednesday its consolidated net profit slumped 97.9% on the year in the first quarter of 2022, to 580,000 kuna ($81,000/77,000 euro) as production at its factories in Russia was suspended due to the war in Ukraine while the global shortage of semiconductors continued.

“The business results of AD Plastik Group for the first three months of 2022 are somewhat worse than expected, which is mainly due to the consequences of the Russian-Ukrainian crisis,” CEO Marinko Dosen said in a quarterly report flied with the Zagreb bourse.

“Challenges related to the lack of semiconductors in the market have continued in this year too, and stabilization is expected in the second half of this year. At the same time, new circumstances and challenges directly affect the realization of our factories in Russia, because car manufacturers in that market have stopped their production activities. Although our factories are ready to resume production, at the moment it is impossible to accurately predict when production in Russia will restart,” Dosen explained.

In the first quarter of 2022, AD Plastik Group's operating revenue came in at 251.8 million kuna, down 23% compared to the same period of last year.

EBITDA in the period under review amounted to 24.7 million kuna, down 52.9% on the year.

Dosen said the primary task of the group in the coming period is to preserve financial stability and business sustainability.

“We are focused on the realization of existing projects and expanding the portfolio of development and production projects, in order to strengthen our position as a development supplier in the European market. It will not be easy at all, but we are ready for different scenarios, depending on the further development of the situation and external factors that we cannot influence,” he concluded.

The company's shares traded at 98 kuna on Wednesday on the Zagreb bourse, down 1.21%.

(1 euro=7.565 kuna)

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