In Q1 the company reported an increase in sales of 5%, increase in EBITDA of 10% and a net profit EUR 7.4m (+8%).

In Q1 2021, sales of Cinkarna Celje reached EUR 50.3m, which is an increase of 5% YoY and is 16 % above the plan for the period. Higher than planned sales in the Q1 are due to higher value of sales of titanium dioxide, copper fungicides, powder coatings and polymer services.

Total sales to foreign markets increased by 6% YoY. The increase in sales to foreign markets is undoubtedly due to higher quantities of pigment sold. In absolute terms, the most obvious increase is in sales to EU markets, which account for 74.6% of the total sales.

When looking at the sales program, sales of the titanium dioxide pigment program reached EUR 40.3m (80.2% of total sales). The company notes that changes in consumer habits during the epidemic towards the end of the year resulted in a significantly increased demand for pigment.

Sales of varnishes, masts and printing inks (9.2% of total sales) noted a sharp increase of 17% which is mainly related to the increase in the volume of sales of masterbatches and powder varnishes.

Turning our attention to operating expenses, cost of goods, materials and services reached EUR 27.4m (-1%). In relative terms, the most important is the increase in packaging costs, which are due to each customer requirements higher by 18%. The total direct cost of materials, energy and packaging is EUR 84k higher YoY, with a 1% reduction in production at constant prices. Labour costs noted an increase of 3% to EUR 7.3m.

As a result of all of the above EBITDA reached EUR 12.6m, representing an increase of 10%. Such a result puts EBITDA margin at 25%.

Going further down the P&L, Q1 of 2021, Cinkarna reported an operating profit of EUR 9.2m, representing an increase of 9% YoY (exceeded the business plan by 67%). In Q1 the company reported a net profit of EUR 7.43m, representing an increase of 8% YoY. Such a result is also 66% higher than the company’s plan.

Cinkarna Celje Key Financials (EUR)