The operating profitability (EBITDA) of the Thrace Plastics Group reached 12.3 million euros in the first quarter of 2024 compared to 11.7 million euros in the first quarter of 2023, marking an increase of 5.4%.

According to a related announcement, this increase is primarily due to enhanced sales volumes by 3.1%. but also in the improvement of the product mix, with the result that the EBITDA margin is also enhanced.

The Group’s turnover amounted to EUR 88.3 million compared to EUR 93 million in the corresponding quarter of 2023, despite increased sales volumes, solely due to relatively lower average selling prices.

According to the same announcement, the increase in EBITDA is clearly a positive development, given the difficult conditions that prevailed in the markets and economies, especially in Central Europe and the United Kingdom, in which the Group has significant exposure, thus demonstrating the Group’s efficiency and its potential to further improve its profitability.

Regarding the Group’s liquidity levels, net borrowing amounted to 17.5 million euros, including term bank deposits of 13.7 million euros, showing a slight increase compared to the end of 2023 (net borrowing at the end of 2023: 16.3 million euros), despite the seasonality, which results in the increased working capital needs of the first quarter. The low level of net debt demonstrates the Group’s strong financial position, the quality of its customer portfolio and its ability to invest while keeping its net debt low.

At the same time, the implementation of the Group’s planned investment plan, amounting to 30 million euros on a cash basis, continues smoothly, with investments made in the Group’s facilities in Greece and abroad and in both branches of activity.

Having entered the second quarter of the year, markets and economies are showing comparable characteristics to the first quarter. Inflation remains at stable levels, interest rates remain consistently high, while the prices of raw and auxiliary materials show a relative decrease, mainly due to relatively low demand.

For the first half of 2024, it is estimated that the operating profitability (EBITDA) of the Group, in absolute numbers, will fluctuate at corresponding or slightly improved levels, compared to the first half of the previous year.

With regard to the annual profitability for 2024, the Management, taking into account the strong uncertainty about the course of the global economy and in particular Europe, had formulated the estimate that the EBITDA profitability of 2024 will fluctuate at higher levels than the previous year. However, although it is not revising its original annual targets, the recent crisis in the Middle East creates new conditions of uncertainty, the effects of which are impossible to determine at the given time, therefore any estimate of annual profitability is highly uncertain.