The increase in the results of Orzeł Biały Group in 2017

Orzeł Biały Group, Polish producer of refined lead and lead alloys with international reach, generated revenues of PLN 677.1 million in 2017 as compared to PLN 537.3 million in the same period last year.

• group EBITDA (operating profit before depreciation/amortisation) in 2017 amounted to PLN 33.9 million, up 21.3% as compared to the previous figure.
• Net result of Orzeł Biały Group amounted to PLN 15.9 million, up 238.3% as against 2016.
• In the area of ​​core operations, the volume of refined lead sold in 2017 amounted to PLN 70.3 kt (up 7.1% y-o-y).

2017 saw sales revenues of the Group reaching PLN 677.1 million, including an adjustment for lead price hedging transactions, which were negative and amounted to PLN -15.4 million. The increase in sales revenues was caused by increased LME lead prices of 18% in PLN and increased volumes of lead alloys sild of 7%. The share of recycling and production of refined lead accounted for as much as 97.3% of sales revenues of the Group.

EBITDA of the Group amounted to PLN 33.9 million, up 21.1% as compared to the previous figure. On the other hand, the operating result amounted to PLN 24.1 million and was up 28.9% y-o-y. The increase in the operating results of the Group was mainly due to the increase in sales volumes and lead prices and the cost-effective structure of raw materials used for production. The EBITDA margin in 2017 remained at a similar level as in the previous year and amounted to 5.0%.
In 2017, Orzeł Biały Group earned a net result of PLN 15.4 million, up over three times (+ 238.7%) as compared to 2016 when the net result (before adjustment for goodwill and shares in affiliates) amounted to PLN 4.7 million.
“As in the previous year, we focused, consistently and in accordance with the adopted strategy, on recycling battery scrap and on production of refined lead while we abandoned areas unrelated to the core business of the Company within the Group. As part of our key activity, however, we implemented best European market standards, having invested in ​​occupational safety, human resources and intellectual development of our workforce. In addition, we adopted a strategic investment plan for implementation, within which we carry out research and environmental projects as well as ones to increase the operational efficiency of the plant.
In addition, last year, in order to further increase the value of the Company, in cooperation with the financial advisor of ING Bank N.V. London branch, we initiated actions to review the strategic options available to the Company, to pursue further growth possibilities and to obtain funding such development. As part of the review, two basic scenarios were identified that may bring the largest increase in the shareholders value of the Group
The implementation of both scenarios involves necessary sizeable capital spending, which ultimately requires the strategic investor to provide capital support to the Company in the possible roll-out of a selected strategic option.
To sum up, I am satisfied with the achieved results of Orzeł Biały Group and its sustained growth.”- says Michael Rohde Pedersen, President of the Management Board of Orzeł Biały.

Consolidated financial results of Orzeł Biały Group

* For the sake of comparability of data, the results for 2016 are provided before adjustment for goodwill and shares in affiliates