In 2020, the company recorded flat sales, a decrease in EBITDA of 11.3% and a decrease in net profit of 11.6%.
In 2020 Cinkarna Celje reported flat sales of EUR 172.39m. Of that sales one the foreign market amounted to EUR 157.76m (+2.6% YoY), while sales on the domestic market accounted for EUR 14.62 (-22.3% YoY). Flat sales were mostly compensated in Q3 and Q4 due to a better epidemiological situation and increased optimism in the industry.
Operating expenses slightly increased by 2% to EUR 149.86m which mostly came on the back higher material costs by EUR 2.68m or 2.5%. Meanwhile, labour costs noted a slight decrease of 2.5% to EUR 30.1m. As a result of somewhat higher opex, EBITDA recorded a decrease of 11.3% (or EUR -4.13m), to EUR 32.46m. Such a result puts EBITDA margin at 18.8%, representing a decrease of 2.4 p.p.
Going further down the P&L, Cinkarna’s operating profit decreased by 12.4% to EUR 22.53m.
In 2020, the company’s net profit dropped by 11.6% to EUR 18.95m. Such a result was however 34% higher than the planned annual result. To be specific, the management outlined that all the following had a positive effect on net profit: the effective cost management; increased demand in the last quarter; postponement of major overhaul to 2021; and the 10-day extension of the production year.
In 2020, Cinkarna’s CAPEX stood at EUR 12.23m, which represents 61.48% of the planned funds. The amount is lower than planned mainly due to the suspension of non-essential investment and maintenance work during the COVID-19 pandemic.
