Press releases

CIECH Group with the second best quarterly result in its history, a three-digit increase in EBITDA in the Agro Business

In the first quarter, the CIECH Group generated PLN 229 million of normalised EBITDA, which means an increase by 3% year-on-year. At the same time, it is the second best result in the history of the chemical Group – CIECH achieved better results, at the consolidated level, only once, in the fourth quarter of 2017. In the environment of rapid growth in raw material prices, the Group managed to maintain a stable margin in the soda segment, and the AGRO Business continues its successful streak, with EBITDA improved by 145% year-on-year. In the face of the expected economic slowdown, CIECH has a stable business portfolio which is relatively resistant to economic fluctuations.

  • In the first quarter, the consolidated revenues of the CIECH Group amounted to PLN 1,243 million, which means an increase by 44% y-o-y, evidencing the impact of rising raw material prices on the valuation of the Group's products.
  • EBITDA (n) amounted to PLN 229 million, compared with PLN 222 million a year earlier. The result for the first quarter of 2021 was distorted by a one-off event - the sale of CO2 certificates with a value of PLN 49 million. Excluding its consequences, the increase in EBITDA was approx. 33%.
  • In terms of EBITDA, after the first quarter, the achievement of the full-year forecast is at the level of 29-31% (according to the forecast, the Group will achieve EBITDA of PLN 740-780 million in 2022), and in terms of revenues - 28-29 % (according to the forecast - PLN 4,300 - PLN 4,500 million for the entire 2022).
  • As previously announced, after the completion of the Group's largest investment programme, capital expenditure will decline (in the first quarter, it amounted to PLN 127 million, i.e. PLN 58 million less than in the previous year).
  • The net debt to EBITDA ratio remains at a safe level and amounts to 1.67 (calculated for the needs of loan covenants prior to the entry of IFRS 16). Importantly, the Group is secured against the risk of an increase in interest rates due to the debt refinancing operation carried out in 2021 and the conversion of variable interest rates into fixed ones in its loan agreements.

- We consistently implement the intended activities in all our businesses. Despite the increase in the prices of raw materials necessary for the production of soda, salt or silicates, thanks to the efforts of our sales teams, we manage to maintain a stable margin. In the AGRO Business, we expect further double-digit growth dynamics in 2022 and further geographical and product expansion. In terms of business processes, we use the fruits of our hard work in recent years, and even in the face of high economic uncertainty, we are moderately optimistic about the coming quarters and the achievement of our full-year forecast – says Dawid Jakubowicz, President of the Management Board of CIECH S.A.


In the sodium carbonate (soda ash) and sodium bicarbonate (baking soda) market, the increase in raw material prices was reflected in rising product prices. Revenues in these two market segments rose by 50 and 20 percent respectively. Demand continues to be high on the market, which was not significantly influenced by the ongoing war.


In the case of salt, revenues also increased by over 20%, which was affected by higher sales of salt and salt tablets on the Western European markets.


Such very good results of the Group in the first quarter are largely the result of the growth of the AGRO Business - revenues improved by 45%, and EBITDA by as much as 145%. The sales of CIECH Sarzyna, on the Polish market, are growing faster than the plant protection product market, driven by, among others, demand for the latest product – HALVETIC, the sales of which in the first quarter were higher than in the entire 2021. The latest flagship brand of CIECH has been approved for sale in the Czech Republic, Greece, Lithuania, Latvia and Romania.


In the Foam Business, there was a slight slowdown in the furniture market, which affected the results of CIECH Pianki. However, the margin of this business remains higher than it was prior to the pandemic. In the Silicate Business, the increase in revenues is due to both rising raw material and energy prices and the commissioning of a new furnace at the end of 2021.


The Packaging Business has been hit by high gas prices, and in the current state of the lantern market, the opportunities for rising prices for the business's products have been limited. Currently, work is currently to enter new niches on the glass packaging market.


Impact of the war in Ukraine

Since 24 February, the CIECH Group has not been involved in sales to the Russian and Belarusian markets, while the Group's water softening salt tablets are sold to Ukraine. The war in Ukraine does not have a significant impact on the conduct of business activities, although, of course, the Group will be influenced by the possible weakening of economic activity in Europe and worldwide.


Contact for journalists:

Mirosław Kuk, CIECH Spokesperson, tel. +48 723 66 86 86.

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