In 2018, Cinkarna Celje recorded a decrease in sales of 13.1%, increase in EBITDA of 1.1% and an increase in net income 6.2%.
As Cinkarna Celje published their 2018 preliminary results, we are bringing you some key takes from the report. According to it, the company recorded sales revenues of EUR 163m, which represents a decrease of 13.1% YoY. The decrease in sales could be attributed to the surplus supply in the titanium dioxide industry. The changed balance of supply and demand has been reflected in lower volumes and declining sales prices, which are still at fairly high levels.
Cinkarna Celje Sales (2015 – 2018) (EUR m)
Despite the decrease in sales, Cinkarna Celje recorded an increase in EBITDA of 1.1%, amounting to EUR 48.6m. Meanwhile, EBIT increased by 1.9%, amounting to EUR 36.4m. This could mainly be attributed to shifting from a negative change in value of inventories of products and work in progress of EUR -1.2m, to a positive one of EUR 11.8m.
The company also improved their net financial result which amounted to EUR -0.4m, compared to EUR -1.2m in 2017.
All of this led to a historic net income, which amounted to EUR 30.5m, representing an increase of 6.2%. However, note that this is 6% below the company’s 2018 plan (EUR 32.6m).
EBITDA & Net Income (2015 – 2018) (EUR m)
It is also noteworthy that in 2018, the volume of investment increased by 70% and exceeded the overall level by 8.9% planned value. The funds were dedicated to modernization, stabilization and improvement quality parameters for the production of titanium dioxide pigment and environmental protection projects, safety and health at work.