Press releases

Another Strong Quarter for CIECH Group

CIECH Group reported another quarter with strong result, including both increased revenues and profits. During the first three quarters of 2016, normalized EBITDA (Z) of the Group amounted to PLN 646.9M (an increase by 11.5% y/y), and EBITDA margin (Z) stood at 25.4%, which means an increase by 1.8 pp y/y. Such good performance is the result of the consistent implementation of the strategy based on organic growth, increased production efficiency and cost optimization. The policy adopted by the Group helps to strengthen the position of Ciech in international markets and build the value of the company for the benefit of its shareholders.

  • Consolidated revenues of CIECH Group for the first three quarters of 2016 amounted to PLN 2547.5 million (an increase by 3.6% y/y), and in the third quarter alone, they amounted to PLN 853.9 million (an increase by 6.6% y/y).
  • Operating profit after depreciation and amortization (EBITDA) and normalization adjustments (Z) amounted to PLN 646.9 million (an increase by 11.5% y/y). In the period between January and September 2016, the Group generated free cash flows of PLN 211 million, as compared to PLN 58 million in the same period in 2015.
  • After three quarters of 2016, ROE (return on equity) increased to 26.4%, from 20.6% in 2015.
  • The Group's financial costs in the period between January and September 2016, decreased to PLN 39.21 million, from PLN 95.28 million a year earlier, which was a result of debt restructuring performed by the company in 2015.
  • CIECH Group continues to develop its sales in geographical terms (in Europe, Africa and Asia) and in terms of its product portfolio (especially in the AGRO segment, through new registrations of crop protection products abroad and intensive work in the area of research and development).

- We are making efforts to improve the soda production process and making use of our investments in new production capacities in our factories in Poland and Romania. We continue to strengthen the organic segment with increased exports of AGRO products and new product registrations. At the same time, we strive to increase our cost effectiveness and continue to reduce the level of our debt by implementing the provisions of the Group's strategy. These strong results prove that out efforts bring measurable benefits to the company, its employees and shareholders. Our goal is to transform CIECH into a professionally managed company, with a strong international position. In this regard, we are fully supported by our strategic investor – Kulczyk Investments Group. – says Maciej Tybura, President of the Management Board of CIECH.

The economic environment: the attractive exchange rate of PLN to the Romanian Leu (RON) and the lower commodity prices compared to the same period last year contributed to the strong results of CIECH Group for the first three quarters of 2016.

New Investments in the Soda and Silicates & Glass Sectors, Development of the AGRO Sector

In the area of soda ash production, CIECH Group uses the effects of investments which enabled it to increase production capacities in the factories owned by the Group (completion of the Soda+200 investment), and as a result, to increase its revenues. The Group continues its optimization efforts in terms of production efficiency, higher quality of soda ash and the marketing of more processed products, which translates into higher margins.

CIECH Group is intensively developing the AGRO sector by implementing the provisions of its strategy, which involve efforts to double its share on the Polish market of crop protection products. The dynamic research and development work enables subsequent registrations of new products and active substances both in Poland and foreign markets. The expansion into foreign markets was expressed by the growth in export revenues in the segment of crop protection products by over 100% y/y in the period from January to September 2016. In addition to the intensive organic growth in this area, CIECH Group is closely monitoring the market in the context of potential mergers and acquisitions. At the beginning of November, it submitted an offer to purchase companies operating in the AGRO sector and owned by SAPEC; and although finally the companies were sold to another entity, the Management Board of CIECH continues to analyze the market, in a consistent manner, in terms of identifying the most attractive acquisition targets.

In the Silicates and Glass Sector, after the launch of a new furnace by CIECH Vitrosilicon in June 2016, in its plant in Iłowa, CIECH Group began with the implementation of a long-term (2025) contract with Solvay for the supply of glassy sodium silicate with a total value of approx. PLN 550 million.

- We continue to develop and diversify our product portfolio. We are not only the second largest producer of soda ash in Europe and the largest producer of crop protection products in Poland, but also the leading player on the domestic market of resins and polyurethane foams - adds Maciej Tybura.

Credibility of a Global Company

Currently, more than 50 percent of CIECH Group's revenue comes from sales of products abroad, mainly to countries in Europe but also Asia, Africa and the Middle East. The international dimension of CIECH operations is also supported by the decision to start trading in shares of the Group at the Frankfurt Stock Exchange as of 23 August 2016.

- CIECH products are sold on approx. 100 markets worldwide. Our presence at the Frankfurt Stock Exchange further increases our credibility in dealings with our counterparties - says Maciej Tybura.

CIECH is the first Polish company to be listed on the second-largest stock exchange in Europe. In this way, CIECH is given the chance to be directly compared with international giants of the chemical industry, such as BASF and K+S, and gains access to a large and liquid capital market.

Mirosław Kuk, CIECH Group Spokesman – , tel. +48 723 66 86 86.

CIECH is an international, professionally-managed group with Polish roots, with a well-established position of a leader of the chemical sector in Central and Eastern Europe. It manufactures products which are used in the production of articles necessary in everyday life of people all over the world - state-of-the-art products of the highest, world quality. Taking advantage of the support of a reliable strategic investor, it implements the strategy of global development, extending its sales in world markets. At the same time, it combines the modern approach to business with production tradition which goes back to 1882. More info at

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