Strong results of the CIECH Group in 2016 owing to investments and strengthening its international position

In 2016, the CIECH Group generated favourable financial results. Revenue, operating profit and normalised EBITDA (N) increased as compared to 2015, reaching the amount of PLN 3,455 million, PLN 660 million and PLN 877 million respectively. The high profits are the result of the efforts of the CIECH Group’s employees and new investment projects completed in 2016. CIECH implements the strategy for building a diversified chemical group with a strong position in international markets. At present, the Group sells its products on approx. 100 markets, earning approx. 50 per cent of its revenue from foreign sales (i.e. sales outside countries in which the Group’s plants are located).

  • Consolidated revenue of the CIECH Group for 2016 amounted to PLN 3,455 million (an increase by 5.6% y/y).
  • Normalised EBITDA (N) amounted to PLN 877 million (up by 17.2% y/y) and the net profit amounted to PLN 594 million (up by 71.7% y/y) .
  • The Group’s investment expenditure amounted to PLN 490 million, as compared to PLN 504 million in 2015.
  • Free cash flows for 2016 amounted to PLN 391 million.
  • The ratio of net debt to EBITDA (N) declined to 1.4 from 1.8 recorded at the end of 2015.
  • In 2017, the CIECH Group intends to continue working on improving the efficiency of business activities, introducing specialist products and expanding sales in foreign markets (in Africa, Asia, North America and other areas).
  • The Group also plans to continue the implementation of development-oriented investments, including the manufacture of baking soda for the pharmaceutical industry and production of specialist salt products, as well as further expansion of its Research and Development (R&D) activities.

It was a good year for CIECH. Completed investment projects and efforts in the area of optimisation on business activities contributed to this strong performance. Our development is based on organic growth, cost optimisation and consistent improvement of debt ratios. With the future in mind, we invest in specialist products in virtually every segment of our business. Owing to these efforts, we will be able to successfully compete in the global market, changing the CIECH Group into an international chemical concern that develops for the benefit of its shareholders and employees – Maciej Tybura, President of the Management Board of CIECH S.A.


One of the most important events for the CIECH Group in 2016 was the decision to introduce the Company’s shares to trading on the Frankfurt Stock Exchange. As of 23 August 2016, CIECH is the first Polish company listed both in Warsaw and on the second largest stock exchange in Europe. Owing to this decision, CIECH S.A. is now listed on the same floor as the largest European chemical companies, such as BASF and K+S, and is subject to the same criteria of evaluation of the implementation of a strategy by international experts and analysts. In addition, the company gains access to a large and liquid capital market. This is another step towards the implementation of a strategy of expansion of the leading Polish chemical company in international markets.

The increasingly strong position of CIECH in international markets was reflected also in the Boston Consulting Group’s report, where it was listed as one of the ten most attractive chemical companies in the world in terms of the total shareholder return over a period of five years (CIECH was ranked 3rd in Europe and 8th in the world).


In 2016, the Group utilised the effects of investments in the soda area. The CIECH Group’s plants recorded an all-time high level of production owing to the investment programme implemented in the years 2014–2016.

Successful sales of additional volumes of soda at attractive prices had a material impact on financial performance. Furthermore, the investment in the Silicates and Glass segment, consisting in the replacement of the furnace for manufacturing sodium silicate, doubled the production capacity and allowed for the commencement of execution of a long-term contract with Solvay, with the total value of PLN 0.5 billion.

Another element that contributed to this strong financial performance was the development of specialist products in the area of salt and baking soda. At present, the CIECH Group is focused on the production of dry salt. Owing to a state-of-the-art packaging line in Janikowo plants, the Group supplies table salt to a significant number of retail chains in Poland and is consistently increasing its market share in Europe. The Group also manufactures and sells increasing volumes of, among other products, salt tablets for water purification. In the area of baking soda, the Group’s efforts were focused on obtaining quality certificates (including Good Manufacturing Practices) to be able to produce soda used in the pharmaceutical industry.

We offer a constantly growing range of specialist products, including increasingly high grades of baking soda and salt, silicates or resins. In the AGRO business, we plan further investments in the development and registration of products, as well as intense marketing efforts. We are entering new geographical markets, including Asia, Africa and North America. High standards of services and relations with customers has become one of our key competitive advantages – Artur Osuchowski, member of the Management Board of CIECH S.A.

In the organic segment (plant protection products, resins, polyurethane foams), development efforts were aimed at extending the range of products offered, expanding into foreign markets and improving the efficiency of production. In the AGRO business, the value of export sales of plant protection products has doubled. In 2016, CIECH Sarzyna registered its products in ten European markets and in Australia. Products of the largest Polish manufacturer of plant protection chemicals can be found in, among other markets, Spain, Italy, Germany, UK, Central Europe and the Far East.

2017 will be marked by further improvement of efficiency and development of specialist products. This will entail further investments in, among other areas, continued development of salt products and modern production of baking soda for the pharmaceutical sector. We are also analysing other investment opportunities which may strengthen our position in the most attractive market segments. In addition, these efforts are necessary in the light of challenges facing the chemical industry and related to the volatility of raw materials prices or policy on CO2 emissions – said Maciej Tybura. – We are carrying out intense R&D efforts, working on about one hundred initiatives. We are also committed to continuously improve our operating efficiency – that’s why have commenced the implementation of the latest version of the SAP ERP system in the entire Group. Owing to this, we will be able to further improve our process efficiency and keep our costs in check – he adds.

A table presenting key figures concerning the CIECH Group’s performance in 2016 is provided below:

[PLN million]20162015Change y/y
Revenue3 4553 2735,6%
Gross profit on sales1 04086620,1%
Gross margin on sales30,1%26,4%3,7 p.p.
EBIT margin19,1%15,0%4,1 p.p.
EBITDA margin25,6%21,6%4,0 p.p.
EBITDA (N)87774817,2%
EBITDA (N) margin25,4%22,9%2,5 p.p.
Net profit/loss 59434671,7%
Net margin17,2%10,6%6,6 p.p.

Mirosław Kuk, CIECH Group Spokesman –, tel. +48 723 66 86 86.

CIECH is an international, professionally-managed group with Polish roots, with a well-established position of a leader of the chemical sector in Central and Eastern Europe. It manufactures products which are used in the production of articles necessary in everyday life of people all over the world - state-of-the-art products of the highest, world quality. Taking advantage of the support of a reliable strategic investor, it implements the strategy of global development, extending its sales in world markets. At the same time, it combines the modern approach to business with production tradition which goes back to 1882. More info at

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