In 2022, the CIECH Group generated PLN 1.03 billion (adj.) EBITDA[1] (+45% y/y). The Group's revenues amounted to over PLN 5.4 billion (+55% y/y), while net profit increased by 158% y/y to PLN 565 million. The results settle at the upper end of the forecast revised by the company last November. The record results in 2022 are the effect of the good economic situation on the raw materials market, which CIECH fully capitalized on thanks to the investments made over the years in the transformation of the Group into a modern and effective chemical group.

Last year, CIECH announced a new business strategy for 2022-2024, which assumes, among others, stable dividend payments. In pursuit of this goal, at the end of 2022, the company paid an interim dividend of PLN 79 million, i.e. PLN 1.50 per share, which translates into a 3.5% gross dividend yield. At the same time, the ratio of net debt to (adj.) EBITDA decreased to a safe level of 1.2.

CIECH's priority is also occupational safety – last year, the Group reduced the LTIFR by 50% to 2.5 - i.e. below the strategic target. Furthermore, CIECH constantly focuses on reducing its CO2 emissions. As part of the Group’s ambitious ESG strategy, companies within the Group undertake numerous initiatives to ensure its sustainable development. As part of the transition away from coal, CIECH Soda Polska has partnered on a project to implement a thermal waste processing plant, while CIECH Ventures has established relationships with start-ups supporting sustainable industry.

- Last year showed that it was possible to work in even more demanding conditions than before. Thanks to the favorable developments on the market and the effective transformation of the entire Group, we achieved record results last year. Our business is cyclical, and in 2022, thanks to our quick response to changes in the environment, we made the most out of the economic situation in the soda market. 2023 promises to be less optimistic. Maintaining this level of results will be a very ambitious task – says Dawid Jakubowicz, the President of the Management Board of the CIECH S.A.

In the Soda segment, prices peaked in the fourth quarter of 2022. In Europe, there was still a stable, high demand with a stable level of supply. The increase in all product lines resulted in a 72% y/y increase in segment revenues. Rising soda ash revenues (by 83% year-on-year) were the result of a proactive approach to negotiations, including an effective mechanism for monthly/quarterly price updates in response to rising costs. As a result of the increase in prices, following the soda ash, and with stable demand in key sectors (pharmaceutical, food and animal feed industries), CIECH also increased its production revenues, by 57% y/y, from baking soda – a product with a higher margin.

In the Salt business, sales increased by 83% y/y as a result of higher sales volumes of Polish and German line products, as well as price list changes introduced during the year. In 2022, salt from the German evaporated salt plant received the prestigious International Food Standard certification; CIECH's second salt works, located in Janikowo in Kujawy, also holds the IFS certificate.

Thanks to the agreement signed between CIECH Soda Polska and Inowrocławskie Kopalnie Soli „Solino” (the "Solino" Salt Mines in Inowrocław), CIECH's production plants in Inowrocław and Janikowo will be supplied with brine - the raw material necessary for the production of soda and salt - until 2035. The amount of brine transferred will be similar to the value specified in the current contract, which is valid until 2025. 

The Agro business recorded a successful year, despite the demanding market environment. Last year, the segment's revenues amounted to PLN 559 million. 2022 was marked by good sales of high-margin herbicides, despite the weakening market demand in response to the increase in costs and the stocking of distributors. A strong brand and developed relationships with suppliers allowed CIECH Sarzyna to achieve a good, i.e. 19%, (adj.) EBITDA margin despite the increase in costs and the demanding market. By the last quarter of 2022, Halvetic's sales network was fully operational in 10 countries. Currently, the CIECH Group is present with its range of plant protection products in nearly 50 countries around the world.

The Foams business maintains a very good position in a competitive market. A temporary shortage of raw materials at the end of the year resulted in a reduction in supply and, consequently, an increase in the prices of polyurethane foams. CIECH Pianki, thanks to its good relations with suppliers, ensured the continuity of supplies at competitive prices, which translated into very good results in the fourth quarter of 2022 - the segment recorded an increase in the (adj.) EBITDA margin to 22%. Revenues of the Foams segment amounted to PLN 338 million – 15% less than in 2021, while the segment's (adj.) EBITDA increased by 12% (comparing Q4 2021 to Q4 2022). In 2022, CIECH Pianki was the first Polish producer of PUR foams to receive the ISCC Plus (International Sustainability and Carbon Certification) certificate, confirming the company’s sustainable production approach. 

In the Silicates business, the CIECH Group achieved full utilization and commercialization of production capacity, which in 2021 increased by 30% year-on-year to 240,000 tons. The segment's revenues in 2022 amounted to PLN 530 million (compared to PLN 238 million in 2021), which is an increase of 75% y/y. Such a result, among other things, is the effect of launching a modern and energy-saving furnace for melting vitreous sodium silicate at the end of October 2021. (Adj.) EBITDA of the segment is PLN 93 million, which is an increase of 233% y/y. In the fourth quarter, the segment's (adj.) EBITDA margin was 21%.

The Packaging business also had a successful fourth quarter: in the fourth quarter alone, the segment's revenues amounted to PLN 29 million (compared to PLN 27 million in the same period a year earlier). For the full year, revenues amounted to PLN 107 million (vs. PLN 75 million in 2021). (Adj.) EBITDA margin, after a difficult first quarter, ended Q4 2022 at 18 percent.

Carbon dioxide emissions in the Group, compared to the base year (2019), dropped by approx. 7,5% in 2022. Free CO² emission allowances will cover about half of CIECH's demand in 2023, while about half of the remaining open position has also been hedged. The total volume of ETS emissions in 2022 is approx. 2.6 million tons of CO².

Table 1.: Summary of the CIECH Group's results in 2022

based on Consolidated Financial Statements of the CIECH S.A. Capital Group for 2022

Contact: 

Żaneta Przybylska, CIECH Group’s PR Department 

zaneta.przybylska@ciechgroup.com,

tel. +48 511 809 281.

We invite you to follow CIECH Group's main social media:

LinkedIn: https://pl.linkedin.com/company/ciech-sa/;

Twitter: https://twitter.com/RzecznikCIECH.

CIECH is an international developing chemical group with a strong position on global markets. It is the second largest manufacturer of sodium carbonate and sodium bicarbonate in the European Union, the largest manufacturer of evaporated salt in Poland, the largest supplier of sodium silicates in Europe, the largest Polish manufacturer of plant protection products, and a leading producer of polyurethane foams in Poland. Its factories are located in Poland, Germany and Romania, and it employs over 3,000 people throughout the EU.

Since 2005, CIECH S.A. has been listed on the Warsaw Stock Exchange, and since 2016, simultaneously, on one of the largest stock exchanges in Europe - Börse Frankfurt. The development of the Group is supported by its strategic investor – Kulczyk Investments.

As one of the largest Polish exporters, CIECH ships its goods to almost each continent. They are used to manufacture products necessary in the everyday life of millions of people around the world. That is why the Group is a crucial element of numerous sectors of the economy – construction, automotive, agriculture, chemical, food and pharmaceutical industries.

CIECH combines a modern business approach and care for sustainable development. Since 2020, it has been a member of the United Nations Global Compact - the world's largest initiative that brings together socially, environmentally and economically responsible businesses.

Since 2021, CIECH has been consistently implementing its ESG Strategy, which includes eight commitments in the field of climate policy, social relations and corporate governance.

More information about the CIECH Group can be found at www.ciechgroup.com.