Today we decided to bring you an overview of the FY21 EBITDA and profit margins of Slovenian companies.
Over the course of March, Slovenian companies have been posting their updated FY 2021 results. As a result, we decided to bring you an updated EBITDA and profit margin analysis. One thing that is important to point out is that comparing the margins across the selected companies is not necessarily the best way to do the comparison, considering that many companies operate in different industries. Since both EBITDA and profit margins reflect to a large extent the industry a certain company operates in, it is more advisable to use the peer average or median.
Even so, it is worth seeing which Slovenian companies are more profitable and therefore have a better position in managing their prices and services (reducing costs, increasing prices of goods/services) thus increasing these margins – and which are not. It should also be noted that financials (Triglav, Sava Re, and NLB) were excluded from these comparisons.
FY21 EBITDA margin of Selected Slovenian Companies (%)
Out of the four observed companies, Krka recorded the highest FY21 EBITDA margin at 29.8%. If we were to look at FY 2021 vs. FY 2020, the margin decreases by 3.4 p.p. YoY. This decrease is mostly due to higher COGS and S&A. Next up, we have Luka Koper, which recorded an EBITDA margin of 26.8%. When looking at FY 2021 vs. FY 2020, the company experienced a 2.7 p.p. decrease YoY. The main reason for the lower margin is the decrease in “other” revenues, resulting in lower total sales. Following these two, we have Cinkarna Celje with EBITDA margin of also 26.8%. For Cinkarna, the increase in EBITDA of +7% p.p. YoY has come from the higher sales growth when compared to operating expenses growth. The higher sales were achieved due to higher prices in titanium dioxide, as strong market demand is recorded. Lastly, we have Petrol, which had an EBITDA margin of only 4.8%, and considering the specificity of the industry the company operates in, this comes as no surprise. YoY comparison, Petrol reported a slight decrease in EBITDA margin of 0.6 p.p as operating expenses reported a slightly higher growth than sales did.
FY21 Profit margin of Selected Slovenian Companies (%)
Looking into the FY21 profit margins, we can see that Krka leads the way with 19.7% due to FY results, but the depreciation of the rouble should threaten 2022 outlook. Krka is followed by Cinkarna Celje with 17.3% net profit margin, which increased by 6.3 p.p. YoY. This increase in profit margin is driven by higher sales due to higher titanium dioxide prices, just as EBITDA margin growth was driven. Luka Koper follows with 13.9% profit margin. Last to follow is Petrol with net profit margin of 2.5%, which is a direct result of specificity of the industry the Petrol operates in – the same as EBITDA margin. Overall, Petrol reported a slight increase in profit margin due to the strong bottom line.
