For today we decided to look at EBITDA and net profit margins of Slovenian companies, for which we used Q1 2020 figures.

It is important to note that comparing the margins across the selected companies is not necessarily the best way to do the comparison as many companies operate in different industries. Since both EBITDA and profit margin reflect to a great extent the industry in which the company operates in, we advise to compare it to the peer average or median. Nevertheless, it is still worth seeing which Slovenian companies are more profitable and therefore have more “room” to potentially reduce the prices of their goods or services if needed, while still remaining a higher level of profitability.

Besides that, looking at only Q1 margins might lead to misleading conclusions as some of the observed companies derive most of their earnings in other quarters. Therefore, you can find trailing 12m EBITDA and profit margins at the bottom of the article. Note that Slovenian financials were excluded from the analysis.

In Q1, 4 out of 5 observed companies recorded a double-digit EBITDA margin, with Krka leading the list with 35%. Telekom Slovenije and Luka Koper follow with 33.4% and 28.1%. When observing the profit margins, Krka once again leads the list with 21.9%, followed by Luka Koper with 16.1%. Telekom Slovenije recorded a profit margin of 7.3%

On the flip side, Petrol has the lowest EBITDA and profit margin of 4.5% and 2.9%, respectively, which does not come as a surprise given the industry it operates in.

If you wish to compare EBITDA and net profit margins of these companies to their regional sector peers, you can do so by looking at our daily trading multiples which can be found here.

EBITDA and Profit margin of Selected Slovenian Companies (%) (Trailing 12m)

To put things into a perspective, the deals account for roughly 29.5% of the companies T12 consolidated revenues.

AD Plastik published a document on the Zagreb Stock Exchange announcing that they have concluded new deals worth EUR 60.7m in Russia. The Group has sealed new deals with AvtoVAZ with a total value of EUR 57.7m for a new Lada Niva vehicle model. This vehicle will be produced at the AvtoVAZ factory in Togliatti, and it will undergo a complete redesign.

AD Plastik Togliatti will produce various exterior components for Lada Niva such as front skirts and rear skirts, wheel arch housings, absorbers, front and rear fender protectors and side trims. In addition to production, the Group is also in charge of the development of cover grilles and exterior pillar trims. The start of serial production is planned for the Q1 of 2023, and the estimated duration of the project is 10 years.

At the same time, new deals totaling EUR 3m have been sealed for the Nissan Qashqai, whose front fender protectors will be produced at AD Plastik Kaluga. The start of serial production is planned for the last quarter of 2022 with an estimated project duration of 6 years. To put things into a perspective, the deals account for roughly 29.5% of the companies T12 consolidated revenues.