Financial Results of First Quarter of 2021

FINANCIAL RESULTS OF FIRST QUARTER 2021

ATHEX:  PLAT

Reuters:    THRr.AT

Bloomberg:  PLAT GA

The purpose of the current press release is to present the Group’s financial results for the first quarter of 2021.

Despite the fact that the wide and repid spread of the coronavirus COVID-19 from the beginning of 2020 until today has caused significant disruptions in global supply and demand, the business and financial activity as well as operation of the Group was not negatively affected.

During the first quarter of the year and from a financial point of view, the Group managed not only to deter any decrease in its revenues, but instead achieved to expand sales and profitability, as the reduced demand in some areas of activity was more than offset by the significant increase in sales in other areas. More specifically, it was observed:

·  Continuation of increased demand for products related to personal protection and health and in particular for technical fabrics, used in personal protection applications.

·  Increased demand for products aimed at the food packaging sector.

·  Lower demand for packaging products related to catering, as a result of the limited activity in this sector, especially in Greece.

·  Significant increase of raw materials’ prices on global level.

·  Maintenance and further strengthening of Group's customer base.

More specifically, the following table presents the main financial figures of the Group during the first quarter of the current financial year in relation to the corresponding period of the year 2020. It is also noted that the discontinued operations concern the termination of production activities of the US subsidiary Thrace Linq Inc.

Adjusted EBITDA does not include expenses of € 733 thousand, which relate to the operational reorganization of Don & Low LTD. This subsidiary reduced its presence in woven technical fabrics, while increasing its production capacity in non-woven technical fabrics. The relevant costs relate to the impairment of the company’s fixed machinery equipment.

With regard to the first quarter of 2021, the Group continued to respond to the significantly increased demand of the existing product portfolio in the area of products for personal protection and health applications, thus achieving the sale of higher profitability products. The total Earnings before Taxes at Group level for the first quarter of 2021 amounted to € 29.4 million, out of which, € 20.6 million, according to Management estimates, was a consequence of the above conditions and especially due to the change of product mix; specifically, € 20.5 mil. were allocated to the “Technical Fabrics” segment and € 0.1 mil. were allocated to the “Packaging” segment.

Finally, during the period under consideration, the reduction of Net Debt by € 29,032 thousand was significant (on 31.03.2021 it amounted to € 9,178 thousand compared to € 38,210 thousand on 31.12.2020, i.e. a percentage reduction of 76.0%), with the Net Debt / Equity ratio settling at 0.04x compared to 0.22x on 31.12.2020.

The total Equity on 31.03.2021 amounted to € 208,660 thousand compared to € 174,583 thousand on 31.12.2020.

Assessment of the pandemic’s future impact & Group’s prospects

Regarding the prospects for the current year, despite the conditions of intense uncertainty that make any prediction precarious, the Management estimates that the financial performance of the Group will continue to demonstrate a satisfactory trajectory, both in terms of profitability and liquidity in the second quarter of the year 2021 as well. The maintenance of satisfactory demand for a large part of the product portfolio, despite any limited fluctuations, the expanded customer base, the enhanced liquidity and the continuation in application of strict protection measures are the key factors to minimize the negative consequences of the current situation. At the same time, the first months of the year were characterized by the significantly higher prices of basic raw materials worldwide (compared to the year 2020) and the shortages in certain categories of raw materials, without however this fact affecting the operation of the Group. For the following months of the year, it is expected a normalization of the supplied quantities of raw materials and a gradual de-escalation of prices, without however approaching the levels of the previous year.

The Management remains optimistic about the satisfactory course of the Group's financial results for the entire year 2021, although it maintains reservations about the financial implications that the pandemic will have on the economies of the countries in the near future (especially after the completion of the various aid related programs for those affected) and the manner and intensity with which they may affect the Group's activities, especially in the second half of the year.

For further clarifications or information regarding the present release you may refer to Ms Ioanna Karathanasi, Head of Investor Relations, tel.: + 30 210-9875081.

* Note

Alternative Performance Measures (APM): During the description of the developments and the performance of the Group, ratios such as the EBIT and the EBITDA are utilized.

EBIT (The indicator of earnings before the financial and investment activities as well as the taxes): The EBIT serves the better analysis of the Group’s operating results and is calculated as follows: Turnover plus other operating income minus the total operating expenses, before the financial and investment activities. The EBIT margin (%) is calculated by dividing the EBIT by the turnover.

EBITDA (The indicator of operating earnings before the financial and investment activities as well as the depreciation, amortization, impairment and taxes): The EBITDA also serves the better analysis of the Group’s operating results and is calculated as follows: Turnover plus other operating income minus the total operating expenses before the depreciation of fixed assets, the amortization of grants and the impairments, as well as before the financial and investment activities. The EBITDA margin (%) is calculated by dividing the EBITDA by the turnover. 

Adjusted EBITDA (The adjusted indicator of operating earnings before the financial and investment activities as well as the depreciation, amortization, impairment and taxes): The adjusted EBITDA equals with the EBITDA excluding any extraordinary Expenses/Income.