The first quarter of 2021 has turned out to be a record one in terms of sales for the PCC EXOL Group. The performance of PLN 187.4 million is equal to a 5.2% improvement relative to the analogous period from the preceding year. The gross profit margin was 18.1%, and the amount of products sold increased by 4%.
“Increase in sales is the outcome of, among others, intensified commercial and marketing activities, as well as higher sale prices, which are correlated with raw material prices,” says Mr. Dariusz Ciesielski, Chairman of the Board at the PCC EXOL.
The EBITDA profit reached the level of PLN 18.1 million, which is a good result, yet 12.3% lower from the record EBITDA profit attained in Q1 2020. As a consequence, the net profit was PLN 11.4 million, which was a slightly lower value than in the first quarter of the preceding year.
In the last quarter, the PCC EXOL Group has recorded the highest sales of products for detergents and cosmetics in the history of the group, which translated to 20.5% higher revenue than in Q1 2020. The sales increased both in terms of value and quantity, reaching the level of PLN 80.3 million and 18 thousand tonnes, respectively.
It should be noted that the EBIDTA profit in the first quarter of 2021 was the third quarterly result of the PCC EXOL Group in its history. “At the same time, the sales reached a record high level, mainly due to the good sales in the group of products for detergents and cosmetics”, says Mr Rafał Zdon, Vice President of the PCC EXOL Management Board.
The increased sales of products for detergents and cosmetics was associated with reduced sales of products for industrial applications. However, in terms of industrial surfactants, the situation is gradually improving and the sales in this product group have improved relative to the last quarter of 2020.
From the beginning of the year, we have been observing an increased demand of the market for certain industrial applications, including production of anti-foaming agents. “We hope that reducing covid-related restrictions may have a positive short-term impact on the sales of industrial applications,” explained Mr Dariusz Ciesielski.
In the recent years PCC EXOL Group has focused on portfolio optimization, affecting higher margins thanks to, among others, increased share in the sales of specialized products, as well as industry dedicated products. Over the last four years, surfactants for industrial use have increased an approx. 10% higher annual average margin than the products dedicated for use in detergents and cosmetics.
Investments constitute an equally important strategic element of the Company’s development. Completion of the largest current investment of PCC EXOL, that is the construction of high-molal oxyalkylate production system, is planned for June 2021. It will enable the increase of the Company’s nominal production capacity by about 10 thousand tonnes per annum. The new production line will enable the production if increased amounts of modern and specialized products for such branches as industrial cleaning, paper production or food processing.
“We are finalizing the construction of the high-molal oxylalkylate production system. It is an important investment for us. Thanks to the new system, we will be able to produce other, high margin specialized products,” says Mr Rafał Zdon. “At the same time, we do not exclude expanding our presence on other geographic markets with the creation of further commercial entities,” added the Vice President of the Management Board.
Moreover, the company is investing in increasing production capacity to two thousand tonnes in the field of phosphoric esters. This installation will enable production of a large product group used in metal processing, as well as in industrial and institutional cleaning. The investment completion is planned for the fourth quarter of this year.
After completion of the current investments, the total nominal production capacity of the Company as converted into standard product will increase to an estimate of 139 thousand tonnes per year, in contrast to the current approx. 127 thousand tonnes per year. It should be noted that at the beginning of the company’s history, the nominal production potential was about 100 thousand tonnes per annum. The actual production capabilities depend on the product range manufactured. Production of more complex and specialized products may result in reduced capacity of the system.
The PCC EXOL stocks and bonds are listed on the WSE in Warsaw. The Company is valued as an enterprise that conducts activity while maintaining the principles of sustainable business, which allows it to meet the high requirements of global concerns. The Company obtained the Ecovadis golden level of social business responsibility of business, granted to companies with good repute, ethically conducting business activity and approaching customers, suppliers or other contractors with reliability and honesty.
