Today we decided to bring you an overview of the Q1 2022 EBITDA and profit margins of Slovenian companies.
Over the course of May, Slovenian companies have been posting their updated Q1 2022 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.
Q1 2022 EBITDA margin of Selected Slovenian Companies (%)
Out of the four observed companies, Luka Koper recorded the highest Q1 2022 EBITDA margin at 38.7%. If we were to look at Q1 2022 vs. Q1 2021, the margin increased by a significant 9 p.p. YoY. This growth is mostly due to an increase in revenues of 23%, which is even 20% more compared to what the Group planned for the quarter. Next up, we have Cinkarna Celje, which recorded an EBITDA margin of 33.8%. When looking at Q1 2022 vs. Q1 2021, the company experienced an 8.8 p.p. increase YoY. The main reason for the higher margin is the strong increase in the company’s sales (+31.8%). Sales grew on the back of higher spot prices of the titanium dioxide segment, which were driven by favourable market situation, further boosted by the lack of supply on the market, with still-growing demand – resulting in high prices. Following these two, we have Krka with an EBITDA margin of 30.9%, decreasing by 0.3 p.p. YoY. Overall, we found Q1 2022 results to be quite positive considering the impact of the Russia-Ukraine conflict, with acceptable demand for the company’s products. Lastly, we have Petrol, which had an EBITDA margin of 3.4%, which is in line with the specificity of the industry the company operates in. YoY comparison, Petrol reported a slight decrease in EBITDA margin of 2.5 p.p due to rising inflation in Q1 and the integration of Crodux, which resulted in a surge in cost of services of 41% YoY. The cost of materials was also up 30% due to higher sales of fuel and fuel products on its markets.
Q1 2022 Profit margin of Selected Slovenian Companies (%)
Looking into the Q1 2022 profit margins, we can see that Cinkarna Celje leads the way with 23.5% due to strong Q1 results driven by sales growth of 31.8% YoY. Cinkarna is followed by Luka Koper with a 23.2% net profit margin, which increased by 8.2 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. Krka follows with a 21% profit margin. Last to follow is Petrol with a net profit margin of 1.7%, which is a direct result of the specificity of the industry the Petrol operates in – the same as the EBITDA margin. Overall, Petrol reported a slight decrease in profit margin due to higher inflation and costs regarding the integration of Crodux.