Ljubljana, 29 November (STA) - Chemical company Cinkarna Celje's net profit doubled to EUR 14.6 million in the first nine months of the year. Sales revenue was up by 13% to EUR 153.5 million.
The company attributes the rise in net profit largely to favourable sales conditions for the main group of products in the second and third quarters of 2024, the management said in a report published on the Ljubljana Stock Exchange's website on Friday.
Sales of titanium dioxide pigment increased by 15% to EUR 126.5 million in the January-September period. A gradual increase in demand was observed on the European market, driven by expectations regarding the European Commission's decision on anti-dumping measures against Chinese origin pigments.
Cinkarna Celje exports most of its products. In the first nine months, it exported EUR 142.6 million worth of goods, 15% more than a year ago. One of the key export markets is Germany, where Cinkarna exports 27.6% of total exports and generates more than a quarter of total sales.
Operating profit rose by 121% to EUR 18 million. Earnings before interest, taxes, depreciation and amortisation (EBITDA) amounted to EUR 27.9 million, 56% more than in the first nine months of last year. The company attributed this to higher sales and lower material costs for raw materials and energy.
In the first nine months, EUR 10.1 million was allocated to strategic investments in production and process optimisation, with funds mostly allocated to projects that contribute to energy efficiency, cost reduction and regulatory compliance.
The company expects to generate sales revenue of EUR 201.5 million and net profit of EUR 19.1 million at the end of 2024.
The goal for 2025 is EUR 206.3 million in turnover and a net profit of EUR 15.3 million. "Taking into account the current market conditions, the outlook for the titanium dioxide industry and global macroeconomic projections, we expect a slightly lower operating performance in the coming year," the company said.
Cinkarna plans to spend EUR 19.8 million on investments next year to remove bottlenecks, improve energy efficiency, reduce environmental impacts and improve working conditions. The company, which employs just over 700 people, plans to invest the most in titanium dioxide production.
