AD Plastik profit and revenue under pressure due to Ukraine-Russian crisis

In Q1 of this year, the AD Plastik Group generated operating revenue of 251.83 million kuna (€33.1 million), down 23% year on year. EBITDA was down 52.9% and amounted to 24.65 million kuna (€3.24 million), the plastic car parts manufacturer reported in its financial statement released on Wednesday.

"The results of the AD Plastik Group's business in the first three months of 2022 are somewhat poorer than expected, with the main reason being the consequences of the Russian-Ukraine crisis. The challenges of the lack of semiconductors on the market have continued again this year and we expect things to stabilise in the second half of the year," the company's CEO Marinko Dosen said.

He added that the new circumstances and challenges directly impact the production of AD Plastik's factories in Russia because car manufacturers in that market have halted production activities.

"Even though our factories are prepared to continue with production, at the moment we cannot precisely foresee when production in Russia will be relaunched," said Dosen.

He added that the group's European factories are operating according to plans, even though production capacity is visibly lower due to the lack of semiconductors.

The Solin-based parent company generated a revenue of 176.66 million kuna (€23.25 million) in Q1, which is 18.7% lower y-o-y while net profit amounted to 4 million kuna (€526,000), down 66.7%.

The AD Plastik Group held a stable position at the end of Q1 - its net financial debt was reduced by 45.95 million kuna (€6.05 million) from the end of last year and at the end of March, it amounted to 310.41 million kuna (€40.85 million).