Orzeł Biały ended the third quarter of 2017 with an EBITDA figure at PLN 11.3 million (up 91.5% as compared to the same period of last year). The achieved result was mainly due to the increase in lead prices and a further increase in the sales volumes, compounded by the cost-effective structure of raw materials used for production. The Group continued its strategy focusing on its core business.
- EBITDA of the Group (operating profit before depreciation/amortisation) amounted to PLN 11.3 million in the third quarter of 2017, up 91.5% y-o-y, and, incrementally, a PLN 26.2 million increase in 9 months (up 41, 6% y-o-y). The profitability rate measured as EBITDA to sales revenues amounted to 6.6% in the third quarter and 5.3% in 9 months of 2017, respectively.
- Operating profit amounted to PLN 8.8 million in the third quarter and PLN 18.9 million. cumulatively in 2017, up 144.4% and 61.5%, respectively, in comparison to the previous year.
- In the area of core business, the volume of lead sold in the third quarter amounted to 18.0 thousand mt (up 14.8% y-o-y) and 51.8 kt cumulatively (up 12.0% y-o-y).
- Net profit in the third quarter amounted to PLN 6.7 million versus PLN 1.2 million of net profit a year ago. Incrementally, Orzeł Biały Group earned a net result of PLN 13 million as against PLN 7.2 million in 2016.
Sales revenues of Orzeł Biały Group in the third quarter of 2017 amounted to PLN 173.2 million including a positive result on hedging transactions of lead prices, which amounted to PLN 1.7 million. The increase in revenues by 38.5% compared to the same period of the previous year is mainly caused by the increase in lead prices at 17.9% and the increase in the volume of products sold at 14.8%. Cumulatively for three quarters, revenues amounted to PLN 498 million, up 36 % versus revenues in the corresponding period of the previous year, of which the 12 per cent increase is attributed to the volume of sold lead.
The three quarters, as in Q3 of 2017, saw Orzeł Biały reporting a very good demand side performance of lead and lead alloys, which reflects a high increase in the volume of lead sold year on year, while on the purchasing side, despite favourable situation in the automotive industry, a lower market availability of battery scrap was reported as compared to the last year. The Company is actively seeking new suppliers of raw materials both at home and abroad. There are also actions performer aimed at deeper penetration of the Polish raw material market in order to access cheaper and more stable input sources.
– The third quarter definitely should be considered successful. The results achieved both in terms of converted and sold volume of lead, as well as financial results are certainly satisfying. Looking to the future, we focus on seeking new development opportunities for the Eagle, in addition, we continue to focus on the core business of the Company, we invest in quality, environment, high standards of occupational health and safety. We carry out measures aimed at improving our work organisation, process optimisation and effective use of knowledge, experience and potential of our employees. All this allows us to build a strong company operating towards a consistent sustained increase in the value of the Company” – said Michael Rohde Pedersen, President of the Management Board of Orzeł Biały.
Consolidated financial results of Orzeł Biały Group
PLN million | Q3 2016 | Q3 2017 | Change % | Q1 to 3 2016 | Q1 to 3 2017 | Change % |
Sales revenue | 125,1 | 173,2 | +38,4% | 366,2 | 498,0 | +36,0% |
Gross margin | 8.9 | 15.8 | +77..,5% | 28.4 | 39.7 | +39.8% |
EBITDA | 5.9 | 11.3 | +91.5% | 18.5 | 26.2 | +41.6% |
Operating profit/loss | 3.6 | 8.8 | +144.4% | 11.7 | 18.9 | +61.5% |
Profit/loss before tax | 3.0 | 8.7 | +190.0% | 10.3 | 17.4 | +68.9% |
