Preliminary results for the third 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 third quarter of 2016.During the third quarter, good business conditions persisted on both the domestic and foreign markets served by the Group’s companies. This was reflected in both projected sales growth rate and generated margins. The Management Board estimates that the highest growth rate in the second quarter will be recorded for the Extruded Products Segment and the Flexible Packaging Segment (ca. 18-19 %), while the revenue of the Aluminium Systems Segment will increase by ca. 9 %. Consolidated sales revenue of Grupa Kęty S.A. will amount to ca. 630 million PLN, i.e. it will be higher by ca. 16 % than the last year’s figure.

As estimated by the Management Board, consolidated operating profit in the third quarter will increase from 80.5 million PLN recorded last year to ca. 95 million PLN (+18 %) in the present year. Consolidated profit at EBITDA level (earnings before interest, taxes, depreciation and amortisation) will increase from 104.4 million PLN to ca. 121 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 third quarter of 2015, the balance amounted to -3.5 million PLN). The results of the present quarter will include 5 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. As a result, as estimated by the Management Board, the consolidated net profit, as compared to the third quarter of 2015, will grow from 65.4 million PLN to ca. 78 million PLN, i.e. by 19 %. According to estimates, at the end of September 2016, the Group’s net debt will amount to ca. 370 million PLN.

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

Q3 2015               Q3 2016 (forecast)          Change

  • average EUR/PLN exch. rate in Q3          4.19                       4.33                                       +3 %
  • average USD/PLN exch. rate in Q3          3.77                       3.89                                       +3 %
  • average 3M alum. price in Q3                    1,620 USD/t       1,626 USD/t                         0 %