In accordance with the announced calendar of corporate events, the Management Board of Grupa Kęty S.A., hereby discloses in public the estimated financial results for the third quarter of 2019. As expected, the sales results of the particular segments in the third quarter were more differentiated than in the preceding several quarters.
On the one hand, the Aluminium Systems Segment recorded 10% growth of revenues, and the perspectives for another quarter are stable. Both domestic sales and foreign markets record increases, and the development of the distribution network as well as the systematically extended product offer form solid foundations for maintaining the trends in the future.
On the other hand, on the market of operation of the Extruded Products Segment (particularly export markets), the aluminium price lower by 13% and uncertainty as to the economic situation in the subsequent quarters resulted in approximately 9% drop of revenues in that area. Positive is the fact that this has not translated into a general drop in sales. In that regard the Segment has maintained a level comparable to the last-year’s record values and has implemented a series of actions in order to continue that way.
The Flexible Packaging Segment operates in an environment which is not susceptible to major fluctuations. Therefore, it perfectly supplements and stabilises the Group’s results. Thanks to the systematic development of cooperation with Polish and international concerns, the revenues of the segment have still been growing at a satisfactory pace. In Q.3, that was 6% with practically complete utilisation of the production capacities of the main manufacturing lines.
In effect, the Management Board forecasts that the consolidated sales revenue of the Capital Group will be higher than the value generated last year and will amount to PLN 820 million (+1%). Stable sales and costs control translated into very good results, and skilful working capital management enabled maintenance of debt at an unchanged level, despite payment of the first tranche of the dividend and making payments related to investment projects. As estimated by the Management Board, the consolidated operating profit will reach PLN 120 million, which is as much as 10% higher than last year. Consolidated EBITDA (earnings before interest, taxes, depreciation and amortisation) will increase from PLN 140 million last year to PLN 155 million in the current year (+10%). The balance of financing activities in the quarter (costs of interest, foreign exchange gains/losses with regard to balance sheet items valuation, including foreign currency loans) will be negative and will amount to approximately PLN 6 million (in Q.3, 2018 the balance equalled PLN -5.5 million).
The estimated consolidated net profit for the quarter will amount to roughly PLN 92 million, which means it will be higher than in the corresponding period of the preceding year by 11%. Based on the estimates, at the end of the quarter the Capital Group net debt will amount to about PLN 680 million, which is a level similar to the one recorded at the end of the previous quarter.
The above forecast was prepared on the basis of the following assumptions:
| Q.3,2018 | Q.3, 2019 (forecast) | Change | |
|---|---|---|---|
| average EUR/PLN rate in Q.3 | 4.31 | 4.31 | +0% |
| average USD/PLN rate in Q.3 | 3.70 | 3.88 | +5% |
| average 3M aluminium price in Q.3 | 2,067 USD/t | 1,792 USD/t | -13% |
