AD Plastik Grupa earned €680,000 in net profit in Q1 2023, a 789% increase from Q1 2022, the Solin-based manufacturer of plastic parts for the automotive industry said on Wednesday, noting that the results signal the start of stabilisation of supply chains, specifically semi-conductor supply.

The group’s EBITDA amounted to €2.8 billion, down 14.5% but better than in previous reporting periods.

The group’s operating income totalled €33.07 billion, down 1.1% compared to the same period of last year, the main reason being a significantly reduced revenue in the Russian market.

On the other hand, the group’s revenue in EU markets and in Serbia went up 18.8%.

“Considering the geopolitical situation and the significantly lower revenue and activity in the Russian market, the group’s results are as expected, and the Russian market now accounts for only 7.21% of the group’s total revenue,” AD Plastik Group Management Board President Marinko Dosen said.

He noted that despite the fact that one of the group’s two Russian factories did not operate and the other operated at reduced capacity, it was important to say that the factories were self-sustainable and financially independent from the parent company.

At the same time, the number of new car registrations has been growing in all the more important European markets.

“With more than €95 million worth of new contracts in the European market in Q1, we have reason to be moderately optimistic. Caution is still necessary due to market uncertainties and our primary concern in the coming period is to strengthen our status as a development supplier and preserve our financial stability,” Dosen said.