In the first quarter, the CIECH Group began intensive implementation of the strategy for 2019-2021, assuming the establishment of an effective chemical holding. Despite the continuing demanding environment, revenues at the consolidated level amounted to PLN 953 million, and the EBITDA result (adjusted) was PLN 160 million. The Group took advantage of a better situation in the European soda ash market, and the results of the organic and silicate segments were influenced by the development activities carried out over the past year - including the takeover of the Spanish company, Proplan. The company continued key investments - the completion of the construction of a new line for the production of sodium bicarbonate at the Stassfurt factory and preparation for the construction of a new salt works in Germany. In each of the product areas, CIECH conducted activities aimed at widening its product portfolio and expanding to new markets.

• Consolidated revenues of the CIECH Group for the first quarter of 2019 amounted to PLN 952.7 million (increase by 7.6% y/y).
• Adjusted EBITDA (adj.) reached PLN 159.6 million (a 4.8% decrease y/y), and the net profit amounted to 61.4 million PLN (a decrease by 17% y/y).
• The contracts for soda ash for 2019, as well as the increase in the price of dry salt had a positive effect on the achieved results. Also, in comparison with the first quarter of 2018, the effects of the acquisition of Proplan, the introduction of new products in the AGRO business as well as the impact of investments in the segment of silicates were visible. The weakening of the Polish zloty and the Romanian leu also positively influenced the results.
• The Group conducts intense activities limiting the harmful effects of factors such as the persistently high prices of energy raw materials, CO2 certificates, electricity, as well as improving the liquidity and efficiency of production in the soda segment.
• In the subsequent quarters, CIECH will continue intensive activities related to the implementation of the strategy for 2019-2021, aimed at increasing the Group’s efficiency, including production and increasing the use of innovations in expanding the product portfolio and seeking new attractive market niches.

- The first quarter brought an improvement in the situation on the CIECH’s main operational markets. The increase in prices and good prospects for the demand for soda ash, sodium bicarbonate or salt is an optimistic prognosis for the future. We make intensive efforts to reduce the impact of unfavourable factors, such as high prices of raw materials, CO2 certificates or restriction of production. Our number one priority is currently to increase efficiency and effectiveness in our primary business – we have adopted a new action plan in the energy sector with such assumptions, among others, as reduction of the carbon footprint generated by the Group and increase in efficiency. We continue to focus on expanding our product portfolio and expansion into new markets in other CIECH’s businesses, which is to improve the diversification of revenue sources and the contribution of high-margin products to the Group's result - says Dawid Jakubowicz, President of the Management Board of CIECH S.A.

In the soda segment, the CIECH Group took advantage of the favourable trends in the European market and a favourable situation in Asia, where demand and prices, calculated in dollars, also increased. Demand forecasts for soda ash in Central Europe are promising. In May, a new flat glass production line was launched in Poland, owned by the one of the world’s leading glass producers, and CIECH will be the supplier of the calcareous soda for that production. In addition, already in the second quarter of 2019, the investment in the German facility of CIECH will be completed, increasing the production capacity of the plant by 50 thousand tonnes of sodium bicarbonate annually. There are also plans to invest in Polish plants, which, apart from a slight increase in the production capacity, are mainly aimed at the reduction of costs and increase of the production efficiency.

In the salt area, both prices of final products and the volume of sales were higher than last year. Intensive preparations were also conducted to start the construction of a new salt plant with a capacity of 450,000 tonnes per year in Germany, whose launch is scheduled for the second half of 2020.

The organic area recorded an increase in revenues annually, including growth thanks to an increase in the number of products offered by CIECH Sarzyna and the acquisition of a Spanish supplier of plant protection products - Proplan. The integration with the company acquired in July last year was completed in the first quarter. In consequence, the Group gained a wider access to markets in the south of Europe, mainly in the Iberian Peninsula and North Africa, and in the future further expansion is planned to new markets. In the area of product registration - a key element of building an advantage in the AGRO business - CIECH Sarzyna and Proplan have been fully integrated. In this way, the CIECH Group gained synergy opportunities in the area of R&D and faster introduction of new plant protection products; the first solution from the Spanish company’s offer had its premiere in the Polish market.

In the Silicates and Glass segment, higher sales of silicates were noted due to the launch of a new production line in the spring of 2018. Thanks to the continued demand for sodium silicates, which the CIECH Group is the largest supplier of in Europe, analyses are being carried out regarding an increase of the production capacity in this area. At the same time, CIECH extends its product portfolio in the area of silicates and glass packaging.

“Implementation of the strategy for 2019-2021 is gaining momentum, and it entails further transformation of CIECH into a modern and diversified chemical holding, having a growing share of the innovative element in its business operations. We implement development investments, increase production efficiency, use our advantages and strengthen relationships with our clients around the world”, adds Dawid Jakubowicz.

About CIECH

CIECH is an international chemical group with a strong position on European and global markets, supported by a reliable longterm strategic investor (Kulczyk Investments). The company exports its products to more than 100 countries around the world, offering soda ash, sodium bicarbonate, salt, plant protection products, epoxy and polyester resins, polyurethane foams, silicates and glass packaging. The company has eight production plants in three European countries - Poland, Germany and Romania. Since 2005, the company has been listed on the Warsaw Stock Exchange and, since 2016, on one of the largest stock exchanges in Europe - Börse Frankfurt.