Press releases

In the third quarter of 2019, adjusted EBITDA result of the CIECH Group increased by 8 percent

Over 20% margin in the soda segment, changes in the structure of the organic segment and good results in the sales of silicates - these are the key events of the third quarter in the CIECH Group, which enabled the Group to achieve an adjusted EBITDA result at the level of PLN 142.6 million, i.e. higher by 8 percent y/y. The CIECH Group is implementing its strategy for 2019-2021, the purpose of which is to improve the adjusted EBITDA result to over PLN 900 million in 2021. In addition to development investments, CIECH continues the process of increasing production efficiency in the soda segment, and in other business areas – geographical and product expansion.

  • The consolidated revenues of the CIECH Group for the third quarter of 2019 amounted to PLN 848.1 million. Adjusted EBITDA was PLN 142.6 million, and net profit – PLN 0.4 million.
  • Lower revenues are primarily due to reduced production at the Romanian plant, followed by the suspension of production at CIECH Soda Romania due to the lack of supply of process steam by its only supplier available on the market.
  • The adjusted EBITDA result was affected by the creation of a provision for the incentive programme for the Group managers, launched in the spring and associated with the implementation of the strategy for 2019-2021 (impact on the adjusted EBITDA result at the level of PLN - 5.4 million), as well as VAT which has not been deducted (PLN 11.1 million). In addition, the EBITDA and net result were negatively influenced by an impairment loss due to the production suspension at the Group's Romanian plant (impact on the net result of approx. PLN -36.8 million in the third quarter).
  • The Group's operations in the third quarter were positively influenced, among others, by weakening of the Polish Zloty against the Euro, gas prices which were lower than a year ago, but negatively, e.g. by higher costs of raw materials and CO2 certificates.
  • The main operating segments maintained a high (adj.) EBITDA margin, e.g. in the soda segment it amounted to 25%, and in the silicate and glass segment – 19%.
  • Implementation of development investments in the area of sodium bicarbonate, salt and plant protection products, improving the efficiency of production processes and strengthening the position on the soda ash market, as well as the development of the product offer in other businesses – these are the main growth drivers of the increase of the adjusted EBITDA result to over PLN 900 million in 2021.

- In the third quarter, to a maximum extent, we made use of favourable market conditions in the soda segment. One of the major challenges of the third quarter was the issue of suspended production at the Romanian plant. We continue the process of CIECH’s transformation: we are making efforts to simplify the Group's structure, introducing a wide-range project for digital transformation, including production and support functions, we have improved investment management, and we strive to build an organisational culture. The pillar of innovation is an important element of our activity, which is to support existing businesses on the one hand, and on the other – to look for interesting market niches in collaboration with scientists. All these operations are subordinated to the achievement of our strategy goals - says Dawid Jakubowicz, President of the Management Board of CIECH S.A.


In the third quarter, the situation in the Group's main market - soda ash - remained favourable. Despite the reduced production and subsequent stoppage of the factory in Romania, the increase in (adj.) EBITDA in the soda segment (soda and salt businesses) was almost 34%. In the Group's soda factories, work related to increasing production and energy efficiency is being continued.


The CIECH Group’s Romanian factory is in stand-by mode after the steam supply has been suspended by the only available process steam supplier. Discussions did not bring any result, and currently the company is analysing the possibilities related to a new source of steam at a reasonable cost. To this end, it holds talks with both local authorities and the Romanian government at the ministerial level. The inability to reach agreement with the supplier led to the creation of the second write-down for impairment of assets, which affected the Group's EBITDA and net result in the third quarter. Prolonged production stoppage in Romania should not affect the achievement of the assumed (adj.) EBITDA result in 2021.


In Germany, construction work is underway to launch a new evaporated salt plant. The new plant is being built right next to the Stassfurt soda factory owned by CIECH.


Intensive organisational changes are underway in the organic segment - two production companies are to be separated from the CIECH Sarzyna company producing resins and plant protection products, i.e. CIECH Agro and CIECH Żywice. In the area of plant protection products, the CIECH Group focuses on developing the product portfolio and increasing its share of sales on new markets. The acquisition of Proplan enabled the Group to enter the Mediterranean market (Italy, France, Greece) and North Africa, followed by Brazil, Argentina and Uruguay. Australia, Canada and the Far East continue to be important destinations. According to available analyses, the market for plant protection products is to grow steadily, at a rate of approx. 3 percent annually, in the next 3 to 5 years.


In the face of the difficult situation on the global market (oversupply of Korean resins), the Resins Business is developing its portfolio of specialised products (including sanitary gelcoats). In the area of foam production, CIECH effectively managed the generated margin, given the weakening furniture market in Germany and strong competitive pressure.


There are good market prospects for the silicate business. High demand for precipitated silica, the production of which requires silicates, used, among others, in industry (e.g. cosmetics production) contributes to the development of this business and achieving very good results ((adj.) EBITDA increased by 23.2% y/y). The CIECH Vitrosilicon company is also expanding its product portfolio, in particular, for the construction and agricultural industries (silicate fertiliser components).




Mirosław Kuk,PR Manager, tel. +48 723 66 86 86.


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. For more information, please visit

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