In 2021, Cinkarna Celje recorded an increase in sales of 11.6%, an increase in EBITDA of 57.9% and an increase in net profit of 75.3%.
In 2021, Cinkarna Celje recorded the best sales result in the company’s history which amounted to EUR 192.5 m (+11.6% YoY). Note that this result also came way above the 2021 business plan which projected sales in the amount of EUR 165.9m and a net profit of EUR 10.6m. The reason for this is improvement in market condition and favorable demand from all geographical segments, which is linked to the general consumer optimism. The most important business unit is still titanium dioxide (sales amounted to 81.5% of total sales). Also, the specific market situation for titanium dioxide is present – decreased supply, with stable and strong demand, which resulted in higher bargaining power and suppliers and thus increase in prices. This impact is favorable on margins in the current period.
Operating revenues in FY 2021 amounted to as much as EUR 197.1m, representing a strong increase of 12.4%, which mostly grew due to the higher sales.
Turning our attention to operating expenses, they remained mostly flat, reporting an increase of only 2.1% and amounting to EUR 146m. This increase was driven by an increase in cost of materials by EUR 554k (+0.6% YoY). On the other hand, labour costs reported a decrease of 4%, amounting to 28.9m. Labour costs decreased as the number of employees fell from 824 to 793 (decrease of 3.8%), with the average cost per employee remained app. the same.
Going further down the P&L, EBITDA amounted to EUR 51.3m, which represents an increase by as much as 58%. Such a high increase happened on the back of mentioned sales growth (+12% YoY) and slightly growth of operating expenses (+2.1% YoY).
As a result of the above-mentioned. Net profit in FY 2021 observed a strong increase of 75.3%, amounting to EUR 32.3m (from EUR 19m).
Cinkarna Celje Performance (FY 2020 vs FY 2021)
CAPEX wise Cinkarna Celje spent EUR 11.3m in 2021. Most of the funds were spent on the purchase of fixed assets, replacement equipment and environmental investments. This EUR 11.3m represents 79% of planned funds for 2021. The reason for the lower realization is mostly interruption of work and additional preparation of documentation. The company focuses on investments that primarily show growth potential.
In 2021 the company paid out EUR 16.4m in dividends (EUR 21 per share), which translates to pay-out ratio of 87%. Also, Cinkarna Celje spent EUR 0.9m buying its treasury shares. In 2022 we can expect record dividend which could ran up to EUR 36 per share and dividend yield could range up to 15%. As a result of their strong performance the company’s share was up 2.95% on yesterday’s trading. To learn more about Cinkarna Celje paid dividends read here.
