The Management Board of Grupa Kęty S.A. hereby informs that the Supervisory Board, at its meeting held on 7 February 2017, approved of the Company’s and of the Group’s budget for 2017. In relation to the presentation of the forecast of financial results for 2017 and the presentation of comparable data, the Management Board also publishes preliminary financial results for 2016.
The Management Board assumes that 2017 will be another year of the growth of the Group’s sales and profits. On the basis of adopted assumption concerning the prices of raw materials and exchange rates, particular segments forecast the following sales revenue:
Consolidated sales revenue will amount to 2.5 billion PLN and will be higher by 11% than the revenue generated in 2016. The Management Board is projecting that consolidated operating profit will amount to 297 million PLN, i.e. it will be higher than in the previous year by 2%. EBITDA will amount to 420 million PLN, i.e. it will increase by 6%. The expected financing activities balance in 2016 will amount to -18.2 million PLN and it is based solely on the calculation of loan costs. In addition, when calculating the net profit for 2017, the Company took account of 5 million PLN of a deferred tax asset related to business activities in the Special Economic Zone (in 2016, it was ca. 42 million PLN). As a result, consolidated net profit will amount to 227 million PLN.
The table below shows the forecast of basic consolidated financial figures for 2017 in million PLN as compared to preliminary results for 2016:
| 2016* | 2017** | change | |
|---|---|---|---|
| Sales revenue | 2,252 mill. PLN | 2,500 mill. PLN | 11% |
| EBIT | 290 mill. PLN | 297 mill. PLN | 2% |
| EBITDA | 396 mill. PLN | 420 mill. PLN | 6% |
| Net profit | 275 mill. PLN | 227 mill. PLN | -18% |
| Capital expenditure | 277 mill. PLN | 287.5 mill. PLNł*** |
The above forecasts were prepared on the basis of the following macroeconomic ratios:
Financing: According to the Company’s estimates, at the end of 2017, the interest-related debt due to bank loans and lease will amount to ca. 672 million PLN and, taking into account estimated cash, net debt will amount to 599 million PLN. The increase in debt will be related to the continuation of the investment programme (287.5 million PLN), assumed dividend payment (as per the dividend policy) and the needs related to the financing of working capital. The Management Board assumes that all financial needs will be covered with the financial resources generated during the year and the financing from interest.
Potential acquisitions: The forecasts for 2017 do not take into account any effects of potential acquisition projects. Nevertheless, the Management Board takes into account two directions of potential acquisitions within existing segments and the establishment of a new segment:
Conclusion:
The year 2017 will pose a big challenge in the context of excellent results accomplished in the previous year. Despite the fact, the Management Board assumes that operating results will be similar to record-breaking results from 2016. Lower net result is a purely accounting effect resulting from the presentation of a tax asset in an economic zone. Projected economic values presented in this forecast reflect the implementation of the strategy (planned for a given year), which is to lead eventually to a further increase in the Company’s value.
The Company will assess the possibility of accomplishing the forecasted results and make any appropriate adjustments on a quarterly basis.
