In Q1, sales revenue decreased by 13.3%, EBITDA decreased by 55.1% and net income decreased by 64.5%.   

As Cinkarna Celje published their Q1 2019 report, we are bringing you key takes from it. According to the report, the company observed a decrease in sales of 13.3% YoY, amounting to EUR 45.5m. The company notes that the recorded sales are 9% higher than the planned. Of that, EUR 40.6m (-11.3%) was made on the foreign market, while EUR 4.96m (-26.7%) was made on the domestic market. The company attributes the decrease in sales to the lower demand for the titanium dioxide pigment, which was reflected in a lower selling price. As a result of that, the company observed a poor performance further down the P&L.

Operating revenues in Q1, amounted to EUR 43.5m, which represents a decrease of 22.9%. The reason why operating revenues are lower than sales is that the company observed a negative change in the value of inventories of products and work in progress of EUR -2.68m.

Turning our attention to operating expenses, they observed a decrease of 5.5%, amounting to EUR 37.7m. The decrease could be attributed to the decline in material costs by EUR 2.7m (-9.1%). On the other hand, labor costs observed an increase of 6.8%, amounting to EUR 7.5m.

Going further down the P&L, EBITDA amounted to EUR 8.7m, which represents a decrease by EUR 10.7m (-55.1%). Such a high decrease could be attributed to the above-mentioned decrease in operating revenues.

 In Q1, Cinkarna Celje observed a net income of EUR 4.6m, which represents a decrease of 64.5%.

Cinkarna Celje Performance (Q1 2019 vs Q1 2018)

When observing the investments made in Q1 2019, they amounted to EUR 1.5, which represents a decrease of 73% YoY and is 45% less than the quarter of the company’s 2019 investment plan. In Q1, the investments were focused mainly on a continuation of modernization, improving energy efficiency and ensuring the environmental acceptability of titanium dioxide pigment production.