Financial Results of first quarter 2024

ΤHRACE PLASTICS CO S.A.

3.6.2024

FINANCIAL RESULTS OF FIRST QUARTER 2024

Increased volumes sold (+3,1%) and EBITDA (+5,4%)

Continuation of investments in Greece and Europe

ATHEX:                PLAT

Reuters:               THRr.AT

Bloomberg:        PLAT GA

First quarter 2024 Highlights:

• Turnover: €88.3 mil. with volumes sold posting an increase of 3.1%

• EBITDA: €12.3 mil. increased by 5.4%, vs Q1 2023

• Earnings before Taxes (EBT): € 5.0 mil.

• Low Net Debt: €17.5 mil., including time deposits of €13,7 mil.

THRACE GROUP announces the financial results for the first quarter 2024.

First quarter 2024 Financial Results

The Group EBITDA of the first quarter amounted to €12.3 million, increased by 5.4%, compared to the EBITDA of €11.7 million in the first quarter of 2023. This increase was mainly a result of the higher volumes sold by 3.1%, but also due to the improvement of the product mix, resulting also in the improvement of the EBITDA margin.   

The Group’s turnover amounted to €88.3 million, while in the first quarter of 2023 turnover had settled at €93.0 million. Despite the increase in volumes sold, the variation in 2024 is a result of the relative drop in the average sales prices.

The increase in the level of EBITDA profitability is clearly a positive development, given the challenging conditions in the markets and economies, especially in Central Europe and the United Kingdom, to which the Group is significantly exposed, demonstrating the Group’s effectiveness as well as its potential for further improving profitability.   

Regarding the liquidity levels of the Group, Group’s Net Debt amounted to €17.5 million, including the time deposits of €13.7 million, posting a slight increase compared to the end of 2023 (Net Debt at the end of 2023: €16.3 million), despite the seasonality, which historically results into higher working capital needs for the first quarter. The low level of Net Debt demonstrates the strong financial position of the Group, the quality of the customer portfolio, as well as the Group’s ability to continue implementing investments while keeping its Net Debt at relatively low levels.   

At the same time, the Group's investment plan implementation, amounting to €30 million on a cash basis, progresses smoothly, by investing mainly in the Group's production facilities in Greece and abroad with regard to both business segments.   

More specifically, the following table depicts the key financial figures from continuing operations of the Group during the first quarter 2024 compared to first quarter 2023:

Prospects of the Group

At the start of the second quarter of the year 2024, both markets and economies have been characterized by trends and conditions which are relatively comparable to the ones of the first quarter. Inflation remains relatively stable, interest rates are being held constantly high, whereas prices of raw and auxiliary materials have followed a slight downward trend mainly due to the relatively low demand.  

For the first half of 2024, it is estimated that the Group's operational profitability (EBITDA), in absolute numbers, will range at comparable or slightly improved levels, compared to the first half of the previous year.   

With regard to the Group's annual profitability for the year 2024, the Management estimates that, despite the high uncertainty about the course of the global economy and of Europe in particular, the Group’s EBITDA profitability for the year 2024 is expected to fluctuate at higher levels than the previous year. However, even if the Company does not revise its initial annual targets, the recent crisis in the Middle East creates new conditions of uncertainty, the effects of which are impossible to determine at the given time. Therefore any estimate in terms of the Group’s annual profitability is highly precarious.  

For further clarifications or information regarding the present release, please refer to the Department of Investor Relations and Corporate Announcements, tel,: + 30 210-9875081.