Ciech

Szukaj
WCAG A A A

Press releases

The first three quarters of 2022 have been the best such period in the history of the CIECH Group in terms of generated results

After nine months of 2022, the CIECH Group generated net profit of PLN 233 million on continuing operations, i.e. 36 percent more than in the same period of 2021. The adjusted EBITDA result increased by 19% y/y – up to PLN 661 million. The results were better than last year, mainly due to the good condition of the Soda and Silicates segments. These areas, due to increased efficiency and completed investments, as well as continuing high demand, generated high dynamics of EBITDA growth in the third quarter, by 62 and 346 percent y/y respectively. The favourable situation of the Group enabled its decision to distribute an interim dividend from the profit for 2022 (in the amount of PLN 79 million, PLN 1.5 per share) and to raise the EBITDA (n) forecast for the entire year by more than 25%.

  • Consolidated revenues of the CIECH Group in the first three quarters of 2022 amounted to PLN 3886 million, which means a 57% increase y/y and results from strong demand for the Group's products and effective reflection of the growing costs of raw materials in its product prices.
  • EBITDA (n) for Q1-Q3 2022 was PLN 661 million compared to PLN 554 million a year earlier. This is the best result in the Group's history for the first three quarters of the year. The net profit from continued operations was PLN 233 million, i.e. 36 percent more than in the same period last year.
  • Comparing Q3 2022 to Q3 2021, the Group's revenues increased by 82% (up to PLN 1,407 million), EBITDA (n) by nearly 60 percent – to PLN 230 million, and the net profit - by 106 percent – up to PLN 85 million.
  • The Group maintains a safe liquidity position (PLN 650 million of cash in the balance sheet in Q3) and lower year-on-year debt, which together with higher EBITDA (n) contributed to a significant decrease in the net debt/EBITDA (n) ratio – to the level of 1 .6x.
  • The Group mitigated the risk of interest rate increases with hedging instruments - the effective interest rate for the next four years is 1.3%.
  • Capital expenditures after the first three quarters of 2022 were PLN 328 million (compared to PLN 553 million a year earlier). 80 percent of investment expenditures are initiatives related to the soda business, where numerous projects are being implemented to improve the efficiency of production.

 

- We managed to keep our word and successfully realise our intentions, which is best confirmed by the strongest first three quarters of the year in the history of the Group and almost PLN 1 billion in normalised EBITDA to be achieved for the entire year. The foundation built over the last few years have enabled us to improve the efficiency of the soda segment and develop other businesses. At the same time, the Group's liquidity position is very good, and the debt continues at a safe level. Despite the demanding environment, we are ready to achieve further goals set out in our 2022-2024 strategy – says Dawid Jakubowicz, President of the Management Board of CIECH S.A.

 

SODA, SALT

In the third quarter, the demand for soda in Europe (CIECH's main market) continued at a higher level than supply, which translated into upward pressure on prices. Revenues from sales of (sodium carbonate) soda ash increased by 98% y/y, and (sodium bicarbonate) baking soda by 67 percent y/y, reflecting the increase in commodity prices. As production expenses are growing faster than revenues, the Group places emphasis on improving the efficiency of its processes by introducing, in its factories, solutions such as Advanced Process Control, as well as implementing energy transformation processes (among others, through heat recovery projects).

 

The salt business also recorded a strong increase in sales value, by 165% y/y. Salt from the evaporated salt plant in Stassfurt received the prestigious International Food Standard certificate, which enabled the expansion of the company's customer base. Furthermore, in the area of salt tablets, a new brand is being launched, uniform for the factories in Janikowo and Stassfurt – Aqua Pro.

 

AGRO, FOAMS

After the first three quarters of this year, the AGRO segment generated higher results than in the entire 2021 (PLN 118 million compared to PLN 115 million), increasing its share on the Polish market of plant protection products by 1 percentage point (up to 7%) after 9 months of 2022. Foreign operations focused on the successive expansion of the Halvetic sales range – which is an innovative agent characterised by a smaller amount of active substance while maintaining high efficiency, in line with the idea of sustainable agriculture. 12 countries have already registered Halvetic, and active sales of this agent are carried out in 10 countries.

 

After achieving record results in 2021, the Foams segment showed a normalisation of the result, which is a reflection of weaker demand in the furniture industry. In the third quarter, the EBITDA (n) margin was maintained at the last year's level, i.e. 14 percent.

 

SILICATES, PACKAGING

The combination of the effects of development investments carried out in 2021 and 2022 and high demand allowed for an increase in revenues and EBITDA (n) in the Silicates segment at a three-digit rate. In this segment, revenues increased by 242% and EBITDA (n) by 346% (up to PLN 188 and PLN 30 million respectively). The new, energy-saving furnace commissioned in 2021 (a PLN 80 million investment) and the modernisation of older units improved the competitiveness of silicates from the factories in Iłowa and Żary, and strengthened the position of CIECH as the largest supplier of this raw material in Europe.

 

The Packaging segment also contributed to the increase in sales volumes in the third quarter of this year (on an annual basis), where sales improved by 125% y/y, and EBITDA (n) by 60%. The achievement of this result was possible thanks to optimisations consisting, among others, in improving the raw material composition and reducing the amount of waste, as well as commissioning a new 4-section automatic machine, which increases the processing capacity of melted glass. New solutions were also applied in the area of production and warehouse management, including due to the implementation of the Kaizen system.

 

OUTLOOKS

The fourth quarter so far confirms the positive trends in the CIECH Group's business activity, in particular, in terms of high demand for soda products and silicates. These are also the results of optimisation of production processes and effective use of mechanisms protecting against changes in raw material prices. Moreover, in line with the Group's strategy for 2022-2024, CIECH permanently strengthens its competitive advantages by conducting a large-scale competence development programme for its employees at various levels, and acquires talents from the market by building a dedicated team of professionals.

 

All these activities contribute to improved efficiency of the conducted processes and have caused the company to raise its forecast of EBITDA (n) in 2022 by more than 25% compared to the previous forecast from April, and also to confirm its intention to distribute an interim dividend from the profit for 2022 at the end of December. The intention of the Management Board of CIECH S.A., also expressed in the Group's strategy for 2022-2024, is to pay out a dividend from the profit for 2022 in 2023.

 

- The market prospects for soda are still favourable and we are observing high growth dynamics of the soda market in Central Europe, i.e. in our core area of operation, with no expansion of new capacities on the continent. In global terms, soda sales are supported by population growth, the development of photovoltaics and electromobility. Above all, however, we improve the efficiency of our soda plants and implement further initiatives in energy transformation, optimisation and digitisation of production processes. At the same time, we make efforts to develop other businesses, seeing opportunities for above-average growth in the Silicates business and further geographical expansion of the Agro segment – says Dawid Jakubowicz, President of the Management Board of CIECH S.A.

 

Contact:

Mirosław Kuk, Rzecznik Prasowy Grupy CIECH

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

 

We invite you to follow CIECH Group's main social media:

 

CIECH is an international developing chemical group with a strong position on global markets. It is the second largest manufacturer of sodium carbonate and sodium bicarbonate in the European Union, the largest manufacturer of evaporated salt in Poland, the largest supplier of sodium silicates in Europe, the largest Polish manufacturer of plant protection products, and a leading producer of polyurethane foams in Poland. Its factories are located in Poland, Germany and Romania, and it employs over 3,000 people throughout the EU.

 

Since 2005, CIECH S.A. has been listed on the Warsaw Stock Exchange, and since 2016, simultaneously, on one of the largest stock exchanges in Europe - Börse Frankfurt. The development of the Group is supported by its strategic investor – Kulczyk Investments.

 

As one of the largest Polish exporters, CIECH ships its goods to almost each continent. They are used to manufacture products necessary in the everyday life of millions of people around the world. That is why the Group is a crucial element of numerous sectors of the economy – construction, automotive, agriculture, chemical, food and pharmaceutical industries.

 

CIECH combines a modern business approach and care for sustainable development. Since 2020, it has been a member of the United Nations Global Compact - the world's largest initiative that brings together socially, environmentally and economically responsible businesses.

 

Since 2021, CIECH has been consistently implementing its ESG Strategy, which includes eight commitments in the field of climate policy, social relations and corporate governance.

 

More information about the CIECH Group can be found at www.ciechgroup.com.

Do góry