Preliminary results for the fourth quarter of 2016

The Management Board of Grupa Kęty S.A., according to the announced calendar of corporate events, hereby publishes preliminary forecasts of results for the fourth quarter of 2016.
According to earlier expectations, in October and November good business conditions persisted on both the domestic and foreign markets served by the Group’s companies. Only the sales of building services, as in previous quarters, was lower by ca. 30 million PLN than in the previous year. As a result, consolidated sales revenue in the fourth quarter are forecast at 535 million PLN, i.e. 2% higher than in the corresponding period of 2015. The Management Board estimates that the highest growth rate in the fourth quarter will be recorded by the Extruded Products Segment (ca. 30%) and the Flexible Packaging Segment (ca. 12%). However, the sales of the Aluminium Systems Segment will be ca. 4% lower due to the previously mentioned lower sales of building services.
As estimated by the Company’s Management Board, consolidated operating profit in the fourth quarter will increase from 49.7 million PLN recorded last year to ca. 58.0 million PLN (+17%) in the present year. Consolidated profit at EBITDA level (earnings before interest, taxes, depreciation and amortisation) will increase from 74.1 million PLN to ca. 86.0 million PLN (an increase by ca. 16 %). 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. 3 million PLN (in the fourth quarter of 2015, the balance amounted to -4.2 million PLN). The results of the present quarter will include 3 million PLN of a deferred income tax asset related to a project implemented in the Special Economic Zone, which will increase the result for the period. In the same period last year, net profit increased by 13 million PLN of a deferred tax asset. Therefore, the estimated consolidated net profit in the fourth quarter will be ca. 13% lower than the last year’s figures and will amount to 45 million PLN. According to estimates, at the end of December 2016, the Group’s net debt will amount to ca. 430 million PLN.

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

                                                        Q4 2015        Q4 2016(forecast)    Change

  • average EUR/PLN exch. rate in               Q4 4.26        4.38                      +3%
  • average USD/PLN exch. rate in Q4          3.90             4.07                      +4%
  • average 3M al. price in Q4                     1,509 USD/t   1,710 USD/t            +13%