Cinkarna Celje published their H1 2021 results, recording an increase of 12.1% YoY in net sales revenue, 50% YoY increase in EBITDA and a net profit raise of 60% YoY.
In the first half of 2021, Cinkarna Celje noted net sales revenue of EUR 99.4m, which represents a growth of 12.10% YoY. Also, the result exceeded by 13% the plan for the period. The increase in sales is mostly driven by a surge in sales of their main product – titanium dioxide pigment which has a share of 80.9% in net sales revenue, as well as a result of increased optimism and further growth in construction sector and automotive industry. Furthermore, sales of the pigment increased by 9.4% YoY (or EUR 6.9m) caused by higher average price and an increase in quantities of pigment sold.
EBITDA witnessed an increase of 50% (or EUR 10.7m), driven by both growth in sales revenue by 12.1% (or EUR 10.7m), and decrease of operating expenses by 1.4% (or EUR 1m). Cost of material and services were same as in the same period last year. This is due to the fact that purchase prices of titanium-bearing raw materials are at similar levels as last year. the largest part of production costs included raw materials/material for production (87.3%), followed by energy (10.8%) and packaging (1.9%). Labour costs were down 4% YoY. The largest share of labour costs (76%), gross wages, decreased by 8% YoY. Therefore, EBITDA margin recorded a value of 26.8%, which sums to a 6.8 p.p. increase from H1 2020. Operating profit amounted to EUR 19.6m, up 68% YoY (vs. 1H 2020 of EUR 11.7 million). The operating performance in the first half of 2021 was objectively better than in the same period last year as a result of the postponement of the overhaul to autumn 2021, the record sales volumes in the first quarter and favourable selling process of the main product.
Cinkarna Celje documented a net profit of EUR 15.8m, which corresponded to an increase of 60% YoY (or EUR 5.9m). Net profit margin increased by 4.7 p.p. when comparing to the same period in 2020, which amounted to 15.9%.
Cinkarna Celje Key Financials (EUR)
