The CIECH Group forecasts an increase in EBITDA by 20-25 % in 2021

As estimated by CIECH S.A., as a result of its investments, improved efficiency of its production processes, a wider product offer, and the economic recovery, the Group's adjusted EBITDA in 2021 may increase by approx. 20-25% compared to the reported consolidated result for 2020 (PLN 585 million), i.e. to PLN 700-735 million. According to the forecast, revenues will range between PLN 3,125 and PLN 3,285 million.


The following factors, among others, are to contribute to the projected improvement of the result in 2021: a full year of optimal performance and a full product portfolio of the sodium bicarbonate production line operating at CIECH Soda Deutschland in Stassfurt. The economic recovery may result in an increase in demand for sodium carbonate which is used, among others, in the glass production.


The revenues and profits generated by the salt business will also increase. According to the schedule, the new evaporated salt plant in Stassfurt should reach the target production parameters in the third quarter of this year.


In 2021, the dynamic development of the AGRO business will continue, both when it comes to the product offer and further development of foreign market operations, including Romania and the Iberian Peninsula. In terms of PUR foams production, the prospects are also optimistic, among others, due to development of the furniture industry in Poland.


The projected growing demand may also support the silicate business. Sodium silicates are used in the production of precipitated silica, used by, among others, the automotive segment (tires, materials). In the fourth quarter, the Group intends to launch a new furnace in Żary, allowing it to increase its production capacity by over 30%.


As far as costs and expenses are concerned, the effects of deep optimisation carried out in 2020, due to the economic slowdown caused by the pandemic, should also continue in the coming years. The situation related to the allocation of CO2 certificates is also favourable: the Group has, among others, certificates extended to the Romanian factory, and the allocation for the years 2021–2025 forecast by the European Commission, with a simultaneous tendency to reduce emission levels in the coming years, may limit the effects of unfavourable price trends on the CO2 certificates market.


- The robust financial and operational foundations that we managed to build, enabled the CIECH Group to limit the negative effects of the pandemic and the economic activity decline. Our secured funds for further development, a motivated and committed team and our focus on prospective market segments, with improving economic prospects, allow for optimism about the coming quarters. The objectives of the current strategy remain unchanged, however, the horizon for their implementation is extended due to the impact of the pandemic. On the other hand, we will manage to achieve our non-financial goals related to improved efficiency, elements of innovation applied in business processes, building a friendly work environment and strengthening our customer relations, which will create the foundation for the future development of our business – says Dawid Jakubowicz, President of the Management Board of CIECH S.A.


Published in December 2018, the CIECH Group’s strategy assumed the achievement of the following financial goals: revenues of more than PLN 4 billion, adjusted EBITDA result above PLN 900 million and adjusted EBITDA profitability at a level exceeding 22%.


The financial targets will be updated and postponed, and incorporated into the new strategy of the Group, which is to be approved as soon as the situation related to the pandemic is no longer volatile and unpredictable.

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