In the first half of 2022, the CIECH Group generated PLN 431 million of normalised (N) EBITDA, which means an increase by 5% y/y, and PLN 148 million of net profit, i.e. 14 percent more than in the same period last year. Product and geographic diversification, improving efficiency of production processes, effective cost control and a safe liquidity position enable CIECH to limit the effects of rising raw material prices and inflationary pressure while continuing its transformation and development activities. As a result, meeting the forecast, according to which the (N) EBITDA in 2022 is to amount to PLN 740 – PLN 780 million, is realistic.

• Consolidated revenues of the CIECH Group in the first half of 2022 amounted to PLN 2,479 million, which means an increase by 46% y/y and proves the impact of rapidly growing raw material prices on the valuation of the Group's products.
• (N) EBITDA amounted to PLN 431 million, compared to PLN 410 million a year earlier, and the net profit from continuing operations was PLN 148 million, i.e. 14% more than in the same period last year.
• After the first half of the year, the achievement of the full-year forecast is at the level of 55-58%, both in terms of (N) EBITDA and revenues. The forecast for 2022 assumes the achievement of PLN 740 – PLN 780 million of (N) EBITDA and PLN 4,300 – PLN 4,500 million of revenues.
• As previously announced, the Group's capital expenditures, after the completion of the largest investment programme in its history, are on the decline – and in the first half of this year they amounted to PLN 235 million, compared to PLN 376 million in the same period last year.
• At the end of June 2022, the Group had PLN 635 million in cash in its accounts, which was PLN 133 million more than in the previous year. Its net debt amounted to PLN 1,329 billion, which translated into a safe level of the net debt to (N) EBITDA ratio, amounting to 1.8x (calculated for the needs of credit covenants). The Group is hedged against the risk of an increase in interest rates thanks to the debt refinancing operation carried out in 2021 and the conversion of variable interest rates into fixed ones in its loan agreements.

- In a challenging environment, with rising commodity prices and a possible economic slowdown, we achieved favourable results and in the baseline scenario, we are on the right track to meet the full-year forecast. We have product and geographically diversified businesses with increasing efficiency and the ability to adapt to changing conditions, related, among others, to prices and availability of raw materials. The financial situation enables us to continue the transformation of the Group, to operate in the area of innovation and the start-up market, as well as to monitor the environment in terms of potential acquisitions – says Dawid Jakubowicz, President of the Management Board of CIECH S.A.

The soda business is influenced by the prices of energy resources (coal in Poland, natural gas in Germany) and production resources (coke and anthracite), as well as carbon dioxide emission allowances. These factors were reflected in the growing prices of products, and as a result – in the revenues generated from the sale of sodium carbonate (soda ash) and sodium bicarbonate (baking soda) (an increase in the first half of the year by 68% and 38% y/y, respectively).

At the same time, the Group conducts intensive activities in order to diversify its sources of supply of energy and production raw materials – it has established relationships with coal suppliers, among others, from Australia, South Africa and Colombia, and in the case of anthracite – with suppliers from the USA, Peru and Indonesia. In connection with the continuing unstable situation on the raw materials market, the soda business is expected to gradually move away from annual contracting towards flexible pricing formulas.

The rebound in demand in the HoReCa industry (Hotels, Restaurants & Catering) had a positive impact on the results of the sales of salt from factories in Janikowo and German Stassfurt.

The Agro business continues to generate very good results, which is reflected inthe (N) EBITDA margin at the level of 32% in the first half of the year. In the first half of the year, the (N) EBITDA amounted to PLN 111 million, which is almost as much as the entire 2021 (PLN 115 million). The share in the Polish market of plant protection products increased to 7 percent, from 6 percent a year earlier. At the end of June 2022, Halvetic, the latest product of CIECH Sarzyna, characterised by a lower amount of active substance but equally high efficiency, was registered in 11 countries.

In the Foams business, after the record-breaking 2021, the first half of the year brought a stabilisation of financial results, including due to the base effect and the downturn in the furniture industry. The revenues of CIECH Pianki amounted to PLN 180 million in the first half of this year (compared to PLN 199 million in the same period a year earlier), and (N) EBITDA of PLN 27 million, compared to PLN 36 million a year earlier.

The Silicates business achieved very good results, taking advantage of the continuing economic upturn on the market and limited production capacities of other European manufacturers. The new, PLN 80 million investment in an energy-saving silicate production furnace improved the Group's production capacity in this business by 30 percent and strengthened CIECH’s position as the largest supplier of silicates in Europe. Revenues for the first half of the year amounted to PLN 207 million, compared to PLN 106 million a year earlier, and (N) EBITDA was PLN 34 million, compared to PLN 15 million in 2021.

Despite the increase in gas prices used in the production process, the Packaging business, after showing a loss in the first quarter of 2022, generated PLN 4 million in (N) EBITDA in the second quarter, while achieving a margin of 18%.

- In the coming quarters, we will be implementing our plans for all businesses. In the soda business, we want to increase flexibility in production management, develop activities in the segment of high-margin types of baking soda and commercialise production from the new evaporated salt plant. In the Agro business, we focus on foreign expansion and the development of new generation products, in Foams, we are working on expanding the offer with an ecological line of foams, in Silicates, we will use our competitive advantages and good market conditions, and in the Packaging business, we are working on improving efficiency in the face of high raw material prices – says Dawid Jakubowicz, President of the Management Board of CIECH S.A.

Kontakt:

Mirosław Kuk, Rzecznik Prasowy Grupy CIECH 

miroslaw.kuk@ciechgroup.com, tel. +48 723 66 86 86.

Zapraszamy do obserwowania głównych mediów społecznościowych Grupy CIECH:

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

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

CIECH to międzynarodowa, grupa chemiczna z silną pozycją na rynkach globalnych. Jest drugim producentem sody kalcynowanej i oczyszczonej w Unii Europejskiej, największym producentem soli warzonej w Polsce, największym dostawcą krzemianów sodu w Europie, największym polskim producentem środków ochrony roślin oraz wiodącym w Polsce producentem pianek poliuretanowych. Posiada fabryki w Polsce, Niemczech i Rumunii oraz zatrudnia ponad 3 tysiące osób w całej UE.

Od 2005 roku spółka CIECH S.A. notowana jest na Giełdzie Papierów Wartościowych w Warszawie, a od 2016 roku, równocześnie, na jednej z największych giełd w Europie - Börse Frankfurt. Rozwój Grupy wspiera inwestor strategiczny – Kulczyk Investments.

Jako jeden z największych polskich eksporterów, CIECH wysyła swoje towary na niemal wszystkie kontynenty. Powstają z nich artykuły niezbędne w codziennym życiu milionów ludzi na całym świecie, dlatego Grupa jest ważnym elementem wielu gałęzi gospodarki – budownictwa, motoryzacji, rolnictwa, przemysłu chemicznego, spożywczego czy farmaceutycznego.

CIECH łączy nowoczesne podejście do biznesu z dbałością o zrównoważony rozwój. Od 2020 roku jest członkiem United Nations Global Compact – największej na świecie inicjatywy skupiającej przedsiębiorstwa odpowiedzialne społecznie, środowiskowo i ekonomicznie.

Więcej informacji o Grupie CIECH można znaleźć na stronie www.ciechgroup.com.