The PCC EXOL Group closed the first half of this year with record revenue from the sales of products. The PLN 301.1 million result was an increase over the previous year’s result by nearly 16%. The gross margin on sales achieved the level of 17.8% while the number of products sold increased by nearly 8%.
The revenue growth is driven by both higher volumes and higher sales prices following the prices of raw materials. The trend of constantly rising prices of chemicals, mainly the prices for ethylene oxide being a derivative of oil prices, as well as prices of natural alcohols, already visible in the first quarter, continued throughout the second quarter of 2021, according to Dariusz Ciesielski, President of the Management Board. On the other hand, the decrease in profitability mainly results from the increase in raw material prices on the market, which within a short period of time could not have been translated directly into an increase in sales prices, he added.
EBITDA achieved a good level at PLN 36.5 million, although 3% lower than the record EBITDA generated in the corresponding period of 2020. As a result, the net profit amounted to PLN 21.6 million, comparable to the result of the first half of 2020.
It is worth underlining that, despite a slight decrease in EBITDA, it was the second such record half-yearly result in the Group’s history, according to Rafał Zdon, Vice-President of the Management Board. At the same time, the Group achieved the highest sales volume and revenue in its history in the area of products for detergents and cosmetics, he added.
Revenue in the group for detergents and cosmetics increased by 21.6% compared to the first half of 2020.
The sales of the PCC EXOL Group are also supported by the diversification in the scope of the markets where the products are supplied. At the same time, the Group takes care of the diversity of its portfolio; for example, through enriching the range with more specialised products from the group for industrial applications, according to the president, Ciesielski.
As regards the sales of products for industrial applications, the situation is gradually improving. This trend is reflected by an increase in sales revenue by more than 10% in the first half of 2021 compared to the corresponding period of 2020. Due to the commencement of production using a new oxyalkylate production line, sales in the product group for industrial applications was extended by products for anti-foaming and low-foaming formulations, on which the Group has been placing emphasis for a long time.
The reduction in restrictions related to the pandemic may have potential impact on the increase in sales of products for industrial applications in the near future.
The company’s development also includes investments. The new installation for the production of high-molar oxyalkylates increased the Company’s nominal production capacity by about 10 thousand tonnes per year. The new production line will allow the production of increased volumes of modern and specialised products. These include products for such sectors as: industrial cleaning and paper production.
The completion of the investment in oxyalkylates and the commencement of production at full capacity should have a positive impact on the results achieved by the company in subsequent periods, according to Rafał Zdon. At the same time, we completed the investment in the pilot system. Due to that we are able to implement our ambitious plans related to a significant expansion of the portfolio of surfactants with detergent and cosmetic applications and a number of industrial applications, e.g. emulsion polymerisation or the construction industry.
In order to guarantee the company’s stable development, it is necessary to act responsibly, ensuring the enterprise’s economic development, without causing excessive damage to the environment as well as taking into account the needs of the local community. It will also allow the company to enter new sales markets and to acquire new demanding customers, including international organisations with global coverage, according to Dariusz Ciesielski.
PCC EXOL has been committed to sustainable growth for years and is currently developing a range of products that fit the trend for Green Chemistry, offering customers a new group of GREENLINE products. It allows the company to be active in the area of sustainable production.
PCC EXOL shares and bonds are listed on the Warsaw Stock Exchange. The company is appreciated as a company operating in line with the principles of sustainable business, which allows the meeting of high requirements of global corporations. The company has been awarded a Gold Medal by EcoVadis for its commitment to Corporate Social Responsibility, granted to companies of good repute, running business activities ethically and approaching customers, suppliers or other contractors in a fair and reliable manner.
