Cinkarna Celje published their 9M results, recording a YoY increase of 11.9% in net sales revenue, 68.5% increase in EBITDA and net profit rise of 90% YoY.
In the first nine months of 2021, Cinkarna Celje noted net sales revenues of EUR 146m, which represents a growth of 11.9% YoY. The increase in sales is mostly driven by a higher value of sales of their main product – titanium dioxide, with sales of it amounting to EUR 119.1m (10% Y0Y increase) due to higher demand for pigment towards the end of the year. Sales of titanium dioxide have a share of 81.6% in total net sales revenue. Furthermore, sales of pigments and ink also reported an increase of 9% YoY, amounting to EUR 13.16m.
EBITDA witnessed a steep increase of 68.5% YoY and amounted EUR 42.6m. This increase is mostly driven by growth in sales revenue by 11.9% (EUR 15.5m) with operating expenses being almost flat (1.85% increase YoY). On the expense side, Cost of goods, materials and services increased by 2% YoY. This is because purchase prices of titanium-bearing raw materials did not increase from last year. It is important to note that management does not expect those prices to remain flat and expects them to increase in the near future.
Labour costs were down 3%. The largest share of labour costs, gross wages (c. 70%), decreased by 6% YoY. Therefore, EBITDA margin reached 29.19%, representing an increase of 9.8 p.p. compared to the same period last year. Operating profit amounted to EUR 32.3m, increasing 98% YoY.
With all stated, Cinkarna Celje documented a net profit of EUR 26.16m, which translates to a YoY increase of 90%. Profit margin amounted 17.92% and increased by 6.74 p.p. YoY.
Cinkarna Celje Key Financials (EUR)