A major plus on our business segments

A major plus on our buisness segments

The Management Board of Grupa Kęty S.A., as scheduled in the corporate events programme, hereby publishes preliminary forecasts concerning the results for the second quarter of 2018. Consolidated sales revenue will amount to 735 million PLN (+11%) and consolidated operating profit for the quarter will increase from 81.4 million PLN recorded in the previous year to ca. 87 million PLN (+7%) in the present year. Consolidated EBITDA (earnings before interest, taxes, depreciation and amortisation) will increase from 111 million PLN recorded in the previous year to ca. 117 million PLN (+5%).

Despite the turmoil on the aluminium market caused by the introduction by the USA of import duties on aluminium and aluminium semi-products, and by US sanctions imposed on Rusal, the demand in the second quarter remained at a very high level. As a result, production capacities are always used at levels close to maximum, which is reflected in the results of segments. In particular Group Segments, estimated sales growth will be as follows:

  • Extruded Products Segment – an increase by 6%
  • Aluminium Systems Segment – an increase by 10%
  • Flexible Packaging Segment – an increase by 15%

The balance of financing activities in the quarter (costs of interest, exchange rate differences on balance sheet items valuation, including foreign currency loans) will be negative and amount to ca. 6 million PLN (in the second quarter of 2017, the balance amounted to -1.6 million PLN). Estimated consolidated net profit for the quarter will amount to ca. 65 million PLN, i.e. will be similar as in the previous year. According to estimates, at the end of the quarter, the Group’s net debt will amount to ca. 630 million PLN, thus it will be higher by ca. 50 million PLN (+8%) than the figure recorded at the end of the first quarter of 2018.

The above forecast was prepared on the basis of the following assumptions.

Q2 2017 Q2 2018(forecast) Change
avg. EUR/PLN exch. rate in Q2 4.22 4.25 1%
avg. USD/PLN exch. rate in Q2 3.83 3.58  -7%
avg. 3M alum. price in Q2 1,915 USD/t 2,260 USD/t 18%