Press releases

Sound results of the CIECH Group in 2017: higher revenues, development of the product portfolio and R&D activity

In 2017, the CIECH group, despite unfavourable market conditions - mainly high prices of raw materials and pressure from the competition - achieved good financial results. Consolidated revenues amounted to PLN 3,579.4 m, adjusted EBITDA to PLN 808.1 m, and net profit to PLN 394 m. These sound results are an effect of determined implementation of the strategy according to which CIECH worked last year on the extension of the portfolio of offered products, in particular specialized and high-margin products, such as soda bicarbonate characterized by pharmaceutical quality. These activities were supported by significant investments of CIECH in research and development which, in comparison with 2015, grew in 2017 more than tenfold. The Group also continued its foreign expansion which resulted in, inter alia, the growth in sales of soda ash in prospective markets of Asia and new markets for the AGRO business products.

  • The consolidated revenues of the CIECH Group for 2017 amounted to PLN 3,579.4 m (growth by 3.6% y/y). Adjusted EBITDA (a) amounted to PLN 808.1 m in 2017 (drop by 7.8% y/y), a the net profit to PLN 394 m (drop by 33.7% y/y).
  • The consolidated revenues of the CIECH Group for 2017 amounted to PLN 3,579.4 m (growth by 3.6% y/y). Adjusted EBITDA (a) amounted to PLN 808.1 m in 2017 (drop by 7.8% y/y), a the net profit to PLN 394 m (drop by 33.7% y/y ).
  • Net debt/EBITDA (a) ratio dropped to 1.2 from 1.4 as of the end of 2016.
  • Thanks to the implemented development projects, 2017 was a very successful period for the organic segment of the Group. In the season of 2017, the AGRO business noted the growth by   20%, with shrinking market of crop protection chemicals. Meanwhile, the fourth quarter of 2017 was the best in the history of CIECH Sarzyna, a Company producing crop protection chemicals and resins.
  • In 2018, the CIECH Group intends to continue working on an increase of effectiveness of its business endeavours, extension of the range of its products – in particular specialized products - in each segment of its activity, and on expansion to foreign markets, in particular in the area of soda ash and the  AGRO and Resin businesses.

“In view of the growing pressure from the competition and high prices of materials, the past year was particularly demanding for us. CIECH proved yet again that it is capable of generating sound profits also in difficult market conditions. Good results are mainly an effect of the projects implemented by us in recent years, whose purpose is optimization and professionalization in the area of Group management, but also a result of good investment decisions and cost discipline. At the same time, we are changing as the organization. We introduce modern systems and innovative solutions which increase our effectiveness and business flexibility. This is one of the factors which helps us to significantly improve our customer service. It is only such multi-level approach that will allow us to effectively compete in the global market,” said Maciej Tybura, President of the Management Board of CIECH S.A.

For the main business of CIECH – soda production and sales – year 2017 was a period full of challenges, resulting mainly from high prices of raw materials (in comparison with 2016), as well as the growing pressure on the part of competition. Thanks to its great business flexibility, successful expansion to overseas markets (mainly in Asia) and high quality of its products and customer service valued by its clients, the Group achieved good financial results in this area. Meanwhile, in the salt business, CIECH continued the process of departure from the sales of wet salt to the benefit of sales of dry salt (salt tablets, packets of 25 kg).

Both with regard to the soda business and the salt business, strategic developmental investments are being implemented. In Germany, plants are being developed thank to which, starting in 2019, the production capacity of the Group regarding soda bicarbonate for pharmaceutical applications will grow. Thanks to the investments in new production lines in the Janikowo salt plant, the offer of the Group will be extended in 2018 by new salt products: dish-washer granulate and salines for farm animals. Meanwhile, in Stassfurt, Germany, the preparatory stage is underway for potential construction of a new evaporated salt production plant, worth approx. EUR 100 m.

Thanks to the implemented development projects, 2017 was a very successful period for the organic segment of the Group. In consequence of the development of the product portfolio of CIECH Sarzyna and thanks to intensive sales and marketing activities, in the season of 2017, the AGRO business noted  growth by 20%, even in the shrinking market of crop protection chemicals. What is important, in the AGRO business, CIECH noted annual growth of sales in all product groups.

In the area of resins, on the other hand, activities were conducted consisting of remodelling of the current offer, thanks to which CIECH Sarzyna will provide specialized products to its clients, individually tailored to their needs. An important element of the business activity of the largest Polish resin producers was also foreign expansion and intensive R&D activities aimed at the development of new products. Meanwhile, at the end of the year, new investments were launched in the Bydgoszcz plants of the Group producing PUR foams: the forwarding centre and a new long-block warehouse, which immediately contributed to an increase of production ans sales of CIECH Pianki. Both in the segment of foams and resins, a challenge still remains in the form of availability and prices of materials required for production.

In the Silicates and Glass segment, the Group mainly noted higher annual revenues, which was a result of operation of a new furnace in the CIECH Vitrosilicon plant in Żary (launched in July 2016). Currently, the Company implements a plan of increasing the production capacity in the area of sodium silicate used, inter alia, for production of detergents, or precipitated silica used, inter alia, in tyre production industry.

The Group is also planning to continue investments in the research and development (R&D) area which it intends to allocate PLN 60 m for in 2018. The R&D Centre of CIECH currently is implementing more than 70 research projects. They mainly involve work on new Agro products and products from the Resin segment. 

[MPLN/%]20172016change y/y 
EBIT Margin 16,419,1-2,7 p.p.
EBITDA Margin23,3%25,6%-2,3 p.p.
EBITDA (A)808,1876,8-7,8%
EBITDA (A) Margin22,6%25,4%-2,8 p.p.
Net result394,0594,1-33,7%
Net margin11,0%17,2%-6,2 p.p

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

CIECH is an international, professionally-managed group with Polish roots, holding the well-established position of the leader in the chemical sector in Central and Eastern Europe. It manufactures products which are used to develop articles of every-day use by people all over the world - state-of-the-art products of the highest, world-best quality. Taking advantage of the support of a reliable strategic investor (Kulczyk Investments), it implements a strategy of global development, expanding its sales in global markets. At the same time, it combines the modern approach to business with production traditions which go back to 1882. More information at

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