Celje, 29 August (STA) - The chemical company Cinkarna Celje posted EUR 7.4 million in net profit in the first half of the year, up 5.2% year-on-year, shows an unaudited report released on Thursday. The company recorded a 4.1% increase in sales revenue, which totalled EUR 100.3 million. This increase was driven by higher sales of its key product, titanium dioxide pigment.
Sales of this product went up by 5% to EUR 83.5 million, with demand gradually improving in the second quarter of the year.
"The consideration of possible anti-dumping measures encouraged some European customers to consider changing their purchasing strategies. Provisional measures were announced towards the end of the second quarter. The permanent imposition of significant additional tariffs may lead to improving margins for European producers."
Earnings before interest, taxes, depreciation and amortisation (EBITDA) rose by 3% to EUR 15.5 million.
Sales to EU countries increased by 10% to EUR 72.8 million, with Germany being one of the company's key markets. Sales to dollar-market third countries increased by 1% to EUR 2.4 million, while sales to other countries decreased. Sales in Slovenia were also down 16% at EUR 8.9 million.
The results are above plans for the January-June period, reads the company's press release. "Due to the introduction of provisional import tariffs on pigments of Chinese origin, market conditions have changed. We expect an improvement in demand from European customers for goods of European origin," Cinkarna Celje added.
Based on current figures, the company, which employed 724 workers at the end of June, expects to post more than EUR 200 million in net sales revenue in 2024. The net profit estimate is at EUR 15-18 million, while EBITDA is projected at EUR 31-35 million. All these figures are better than the original targets unveiled in November 2023.
