Home / Business Scene / Decrease in Profitability of AD Plastik in the First Nine Months

Decrease in Profitability of AD Plastik in the First Nine Months

AD Plastik achieved four percent higher total revenues in the first nine months of this year compared to the same period last year, while its net profit slightly decreased, according to the consolidated results of the company.

In this period, AD Plastik generated total revenues of 593.89 million kuna and a net profit of 42.96 million kuna, which is 1.6 percent lower than in the first nine months of last year. The decrease in profitability of AD Plastik in the first nine months of this year is a result of a decline in revenues at the parent company due to reduced car sales in the European Union, as well as the fact that the company’s acquisitions began generating revenues only in the third quarter, and with a slightly lower volume than planned, as stated in the company’s financial report.

The total consolidated expenses of AD Plastik during the observed period amounted to 550.9 million kuna, an increase of 4.46 percent. Among the most important events that affected operations in the first nine months, AD Plastik cites the reduction in production at their largest customers (Renault, Peugeot & Citroen-PSA), the takeover of production at M-Prointex in Serbia, where serial production and delivery for the Fiat program began in early July, as well as the start of serial production and sales in Russia.

In the third quarter, AD Plastik achieved revenues of 166.99 million kuna, which is 7.4 percent lower than in the same period last year. At the same time, net profit doubled to 2.87 million kuna. Regarding strategic guidelines for this year, the company mentions the initiation of AD Plastik’s investment in real estate and equipment at the beginning of the last quarter of this year, which is necessary for the realization of the Edison project. They also highlight the initiation of investment by subsidiaries in Russia for the purpose of preparing the production of Dacia Logan 2, the complete integration of new locations into the Group’s business system at all levels, and achieving net profit at the group level within last year’s profit.