Your needs. Our drive.
Your needs. Our drive.
AD Plastik is the best large exporter in 2019 and also the best exporter to France. At the Golden Key Awards Ceremony, as part of the 15th Convention of Croatian Exporters held in City Plaza Zagreb under the auspices of the Government of the Republic of Croatia, the awards were received on behalf of the company by the President of the Management Board Marinko Došen.
In addition to the awards received, AD Plastik was nominated in two other categories, namely for the best exporter to Slovenia and the most innovative exporter.
While taking over the main award for the best large exporter, Marinko Došen expressed his gratitude to the organizers on behalf of all the winners: “It is a great pleasure and honor for me, but also an obligation for the future to receive this award for the second time in a short period of time. This is the result of the dedicated work of all our employees and constant investment in knowledge, competencies and competitiveness. Last year we achieved historically the best business results, for the fifth year in a row we have been achieving double-digit growth in a very demanding industry and we continuously improve all elements of business success. This crisis has slowed us down in further plans, but it will certainly not stop us. Newly sealed deals, over 50 projects we are working on and the capacity utilization that is slowly returning to normal give us the reason for the slight optimism in these rather complex times. Congratulations to all the award winners because exporters really need to be the backbone of the economy“.
After the awards ceremony, a panel discussion was held on the topic “The impact of the corona crisis on the Croatian economy and exports”, which was opened with introductory speech by the Governor of the Croatian National Bank Boris Vujčić. The panel discussion was attended by: Tomislav Ćorić, Minister of Economy and Sustainable Development, Marinko Došen, President of the Management Board of AD Plastik, Marijana Ivanov and Josip Tica, professors from the Faculty of Economics, University of Zagreb and Darinko Bago, President of Croatian Exporters.
The consequences of the crisis caused by the COVID-19 virus pandemic are also reflected in the published business results of the AD Plastik Group for the first six months of 2020. Thus, the operating revenue of the Group amounted to HRK 548.78 million and were lower by 23.1 percent compared to the same period last year.
Group’s EBITDA amounted to HRK 75.46 million, being lower by 27 percent, while in the parent company its growth of 4.9 percent was realized, which was largely influenced by the sales of non-operating assets and use of government incentives. Despite the circumstances, Group generated a net profit in the amount of HRK 17.31 million, which was by 69.6 percent less compared to the same period last year.
“Despite the very challenging circumstances, we have shown a high level of knowledge, quality and reliability also in these demanding times without compromising at any moment the delivery and production processes of our customers. Brand new and unexpected challenges that we have faced, caught us after the business year in which we achieved the best business results in history, which greatly eased the situation for us. We have adapted our ambitious plans and goals to the circumstances and taken all necessary measures and activities to ensure a high level of safety for our employees, sustainable business and financial stability of the Company. We have adjusted the investment plan, rationalized costs and taken all measures in order to maintain the best possible liquidity,“ said Marinko Došen, President of the Management Board of AD Plastik.
Net financial debt was significantly reduced compared to the end of the previous year, which was mostly influenced by the sales of non-operating assets, as well as the inflow from the part of tools. The NFD/EBITDA ratio was also more favorable, amounting to 2.13 at the Group level.
“The good news is that in the first six months we sealed new deals worth EUR 92.5 million for the future period, which confirms that our customers have continued with their activities and plans. A demanding year lies ahead of us that requires complete focus, determination and perseverance and sudden external influences that have temporarily slowed us down in our development plans certainly won’t stop us,“ said Marinko Došen.
AD Plastik Group has sealed new deals with AvtoVAZ with a total value of EUR 57.7 million for the new Lada Niva vehicle model. This longest-lasting vehicle in the Russian market will be produced at the AvtoVAZ factory in Togliatti, and compared to the model that has been on the market for more than seventeen years, it will undergo a complete redesign. AD Plastik Togliatti will produce various exterior components for Lada Niva such as front skirts and rear skirts, wheel arch housings, absorbers, front and rear fender protectors and side trims. In addition to production, AD Plastik Group is also in charge of the development of cover grilles and exterior pillar trims. The start of serial production is planned for the first quarter of 2023, and the estimated duration of the project is ten years.
At the same time, new deals totaling EUR 3 million have been sealed for the Nissan Qashqai, whose front fender protectors will be produced at AD Plastik Kaluga. The start of serial production is planned for the last quarter of 2022 with an estimated project duration of six years.
According to the Interim Report by Management for the first three months of 2020, which has just been published, AD Plastik Group’s operating revenue amounted to HRK 362.6 million, representing an increase of 4.1 percent compared to the same period last year. Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) at the Group level amounted to HRK 62.7 million, representing an increase of 36.3 percent.
„We have made a safe step into this year and for most of this reporting period we operated in accordance with our plans and goals. All of us were faced with significant challenges caused by the spread of the COVID-19 virus, thus in the second half of March our customers were forced to temporarily stop their production facilities, and consequently – so did we. The stable financial position of the company makes it easier for us to bear the brunt of the crisis we have been facing, and we also use Government measures to ensure business sustainability“, said Marinko Došen, President of the Management Board of AD Plastik Group.
EBITDA margin amounted to 17.29 percent, and despite the negative impact of the weakening of the Russian ruble and Hungarian forint exchange rates, the Group’s net profit was slightly higher than last year in the observed period and amounted to HRK 28.2 million.
„At all Group’s sites, we undertake a range of activities to protect the health and safety of our employees. Although this situation is sure to change a lot, we have been constantly taking care of the sustainability of our business and we use this situation as an opportunity to learn and improve in all segments of our business. Our goal is to overcome crisis with as few consequences as possible and maintain our position as a quality and reliable partner. The vision and direction in which we want to develop are clear and we will not give up on that. The crisis will slow us down a bit, but it will certainly not stop us. I believe that we will succeed in this and in the long run justify the trust of all our stakeholders,“ said Marinko Došen.
It will certainly take some more time for the handshake to become the usual way of greeting again, but business operations need to be continued regardless of the circumstances. We will soon return to our workplaces and be in close proximity to our colleagues which is a great challenge in the time of the pandemic. With the joint efforts, we need to provide an environment where every employee will feel safe and comfortable.
AD Plastik Group has been intensely preparing to restart production at its factories, while taking primarily care of protecting the health of employees. Accordingly, we have prepared the ADP COVID-19 Protocol and a full set of instructions with detailed guidelines for the behavior and operation in new circumstances caused by the spread of coronavirus.
Implementing the prescribed measures requires adjusting workplaces and familiar work practices, but changes in familiar habits have become a necessity in life and business, at least for the foreseeable future.
Employee health and safety are at the forefront of our priorities, and by publishing this document we want to give all our stakeholders an insight into the measures we have been implementing.
The audited Integrated Annual Report of the AD Plastik Group for 2019, which has just been published, is a confirmation of the successful business operations of the Company in the last year, in which the results were achieved above the planned ones. Operating revenue grew by 16.7 percent compared to the previous year, amounting to more than HRK 1.5 billion. The Group’s net profit increased by 14.9 percent, amounting to HRK 102.6 million and EBITDA amounted to HRK 197.5 million, representing an increase of 22.1 percent.
“We have successfully been coping with the business challenges in the automotive market. The strategy we have been implementing, the vision, determination and soundness of business decisions have been successful. Unfortunately, the COVID-19 virus pandemic has put us all in front of brand new and unexpected challenges, and making plans has additionally been made difficult due to the uncertainty of the duration of this situation. In such circumstances, a stable financial position and good results achieved will certainly greatly help to continue our business operations and maintain stability,” said President of the Management Board Marinko Došen.
The growth trend of the AD Plastik Group is still above movements of the markets in which it operates, and despite a significant investment cycle, the growth of operating business has improved net financial debt ratios relative to EBITDA amounting to 2.23 at the Group level.
The ADPL share price increased by 8.5 percent in the reporting period and as of December 31, 2019, it amounted to HRK 191. According to the AD Plastik Group’s dividend policy and results achieved, a dividend of HRK 12.5 per share was paid out last year.
In addition to the financial results, the integrated report contains detailed information on social, environmental and economic impacts, Company and business risks management. The Company’s Sustainability Report is an integral part of the Integrated Annual Report, which provides a comprehensive overview of financial and non-financial performance indicators.
“The past year has been extremely challenging for our production sites, especially in Croatia. We have successfully started serial production regarding several new and very significant projects, thus filling the capacities in Croatia. Some of the most significant projects we have started are the Clio 5 and Ford Puma as well as the redesigned Twingo and Smart. We have sealed new deals worth EUR 157.9 million in the Russian market and EUR 57 million in the European market. This should significantly fill the capacities of our factories in Russia. Our ambitious plans and targets set for 2020 will undoubtedly be affected by the crisis caused by the COVID-19 virus pandemic. We have been undertaking a number of activities and safety and protection measures in order to preserve the health of our employees and the sustainability of our business in the first place. This situation will change a lot of things, but we will certainly do everything in our power to maintain our existing positions and thus justify the trust of all our stakeholders in these rather difficult times,” said Marinko Došen.
The Faculty of Economics in Split held a conference Business Sector for Climate-neutral Europe – How to Meet the Ambition with the Sustainable Development Goals and the Green Plan. The conference was organized by the UN Global Compact Network Croatia, the Faculty of Economics in Split, the European Documentation Center, the Croatian Employers’ Association and the European Economic and Social Committee. Apart from delegation of the European Economic and Social Committee, representatives of the business sector, state institutions and civil society, as well as invited experts in the field of climate change and sustainable development also gathered, and Tomislav Ćorić, Minister of Environment and Energy, participated in the introductory part.
As part of the conference, a panel “How does the business sector integrate sustainability goals into its operations” was held, where Marinko Došen, President of the Management Board of AD Plastik Group, described the company’s position in the market. “In order to function in the automotive industry, we must be qualified. We can only be that if we meet certain standards. The automotive industry has trends and fashion. Three basic trends are represented: safety, vehicle weight reduction and environmental impact. Vehicle weight reduction has an impact on reducing consumption, and a lot of attention is paid to the impact of materials on the environment. We have been constantly investing in the development of materials and the use of the best available technology regarding the construction of our plants and the management of work processes. In terms of materials research and development, the trend is to work with materials with less weight and better properties. We have pilot plants where we perform testing and research. Thanks to this approach, we achieve targeted savings of between 15 and 20 percent compared to conventional materials. We have strategically decided to apply the best available technologies when investing over HRK 200 million in two state-of-the-art robotic painting lines. Taking care of the environmental aspect, we have also built a small plant for waste gas treatment that is generated in the production process. In this way, we have greatly contributed to reducing the negative impact on the environment. All those our activities are covered in an important part of our strategy related to corporate social responsibility,” said Marinko Došen.
AD Plastik Group won the Green Frog Award 2019 for the best Sustainability Report, an award given by Deloitte Croatia for the fifth consecutive year. This year, the Croatian Employers’ Association and the Global Compact Network Croatia joined them as full partners in the selection process.
The award was taken on behalf of AD Plastik Group by Zoja Crnečki, Consultant for Relations with Government Institutions and Funds, who emphasized on this occasion: “Corporate Social Responsibility is a part of AD Plastik Group’s business model and one of the most important components of the company’s development policy. Social responsibility is embedded in all our business processes, which contributes to the realization of UNGC’s Sustainable Development Goals. We are delighted that our work and positive impact on the environment and society as a whole have been recognized and rewarded. ”
Introductory speeches were given by Ivana Turjak Čebohin, Director at Deloitte’s Audit Department and Head of the Green Frog Initiative as well as Vali Marszalek, Consultant for Sustainable Development and Corporate Social Responsibility at CEA and Executive Director of Global Compact Network Croatia.
“Awareness of social responsibility, environmental protection and human rights is becoming bigger and clearer. Such trends in the contemporary market have stimulated positive changes in Croatia, and the number of companies that have started publishing non-financial reports is increasing year by year. Non-financial reporting can bring numerous benefits to companies, both for reporting entities and for companies that are not legally obligated to do so,” said Ivana Turjak Čebohin.
The awards ceremony was held as part of the „Employment with Effect“ conference, which included a panel discussion of the same name on the topic of the employment of people with disabilities.
The continuation of successful operations and the realization of the planned growth of revenue and profit of the AD Plastik Group have been confirmed by the just-announced interim unaudited results for 2019. Operating revenue amounted to HRK 1.5 billion, representing an increase of 17.1 percent compared to the same period last year.
Revenue at the parent company increased by 17.3 percent, amounting to HRK 1.1 billion. Start of serial production of new vehicle models and tool sales regarding these vehicles have greatly influenced profitability growth, thus EBITDA of the Group amounted to HRK 194.8 million, recording an increase of 20.4 percent, while in the parent company it increased by 49.2 percent and amounted to HRK 121.1 million. The Group’s profit increased by 10.4 percent, amounting to HRK 98.6 million, and in the parent company the profit is slightly higher than last year’s, amounting to HRK 89.7 million.
„Despite the challenges in the automotive market, our results confirm the correctness of our vision, strategy and business decisions we make. The growth trend of our Group is still above the market trends in which we operate, which also shows that we have chosen a good direction of business development. The past year was extremeley challenging for our production sites, especially in Croatia. We have successfully started serial production regarding several new and very significant projects, the most notable of which are Clio 5 and Ford Puma as well as redesigned Twingo and Smart. We have filled production capacities in Croatia and new deals worth EUR 157.9 million, sealed for the Russian market, will significantly fill the capacities of our Russian production sites. In addition to the new deals sealed for the Russian market, new deals worth EUR 57 million have been sealed in the European market,“ said Marinko Došen, President of the Management Board of AD Plastik Group.
Despite the significant investment cycle, the growth of operating business has improved net financial debt ratios relative to EBITDA, amounting to 2.26 at the Group level.
„We have made a safe step into another business year that brings new challenges and opportunities, and I believe also the successful results. Preparations of our production sites in Russia for acceptance of new projects as well as production stabilization at Croatian production sites lay ahead of us. We have set ambitious plans and the goals and their realization requires a high level of focus from us. The results we have been achieving are an additional motivation and incentive, but at the same time an obligation and responsibility to all our stakeholders to continue in the direction of further growth and development of the Group,“ said Marinko Došen.
The ADPL share price increased by 8.5 percent in the reporting period and as of December 31, 2019, its price amounted to HRK 191. According to the AD Plastik Group’s dividend policy and results achieved, a dividend amounting to HRK 12.5 per share was paid last year.
AD Plastik Group has sealed new deals worth EUR 31.8 million for the Russian and European market. Additional deals worth EUR 22.4 million have been sealed in the Russian market for the Renault-Nissan-AvtoVAZ Alliance and the cooperation with the PSA Group has been continued in the European market by sealing new deals with a total value of EUR 9.4 million.
AD Plastik Togliatti factory in Russia will be producing absorbers and exterior pillar trims for the new model Lada Granta as well as front bumper lower grills for the new vehicle models Renault Logan and Sandero. These are additional deals for new Alliance vehicle models for which most of the deals have been sealed during 2019. The start of serial production of the mentioned vehicles is planned for the second and third quarters of 2021, and the estimated duration of the projects is eight years. The value of the deals sealed for the vehicle Lada Granta amounts to EUR 15.2 million, and for the new Renault models – EUR 7.2 million.
The new deals sealed with the PSA Group confirm the very successful status of the AD Plastik Group in the supplier panel of this reputable automaker. The AD Plastik Group factory in Mladenovac has sealed the deal on production of glass run channels for Opel Astra, the best-selling Opel vehicle, with a total value of EUR 5.8 million. The start of serial production is planned for the fourth quarter of 2021 with an estimated project duration of eight years. The factory in Solin will be producing exterior components, namely the upper grills, which will be installed on Fiat Ducato and Opel Vivaro, vehicles from the FCA and PSA Group. AD Plastik Group will be producing components for these commercial vehicles models for the first time, with a value of the deal sealed amounting to of EUR 2.2 million. The start of serial production is also planned for the fourth quarter of 2021 with an estimated project duration of two years. Factory in Solin will also be producing air extractors for Peugeot 308 and Opel Astra vehicles, with a project value of EUR 1.4 million. Start of the serial production of this project is planned for the first quarter of 2021, with an expected duration of seven years.