In 2019, the company's turnover amounted to 46.3 million euros, 11.8 % more than in 2018. This increase was a consequence of the increase in activity in the Mass Production area (Producción Masiva), which occurred in a context of generalised fall in the purchase price of the main raw materials. The number of tons sold amounted to 59,288, 17.5% more than in 2018.
It should be noted that 68% of Kompuestos' turnover comes from products formulated in the last 5 years, as a result of the company's ongoing efforts in innovation and R&D.
Kompuestos is present in more than 44 countries, with sales outside the Spanish market of 68%. Specifically, Spain represents 32.0% of the tons sold in 2019, followed by Germany with 21.2%, France with 11.4% and the Netherlands with 8.1% of the total tons sold. Other markets account for the remaining 27.3%.
For its part, the company achieved an absolute gross margin of 14 million euros, 17.5% higher than the previous year. In fiscal year 2019, the total gross margin on sales was 30.3 %, compared to 28.8 % in the same period of the previous year. This increase was mainly due to the company's increased activity in terms of turnover.
The company's net worth reached 16.9 million euros, 39% higher than in the previous period, as a result of the 5 million euro capital increase linked to the incorporation into the MAB.
Improvement of productioncapacity and commitment to R&D
In 2019, Kompuestos started up a new production line for the manufacture of traditional products at one of its production plants located in Palau-Solità i Plegamans. The new production line increased Kompuestos' total maximum nominal capacity by 51,000 tons to 220,510 tons. This new production line makes Kompuestos' production process more versatile and allows it to adapt more easily and quickly to market demand. The purchase of this production line was financed prior to the capital increase in August 2019.
During 2019 Kompuestos also implemented, in a definitive way, the new integrated management information system (ERP), increasing with this system the automation in the processes and extending also the development of the management and internal control systems.
One of Kompuestos' priorities is the continuous development of specific solutions for the company's customers, which makes investment in R&D a major part of Kompuestos' structure.
Currently, the main focus of R&D+I projects is on the creation and development of biodegradable and compostable resins made from starches and other biopolymers of renewable origin. Kompuestos also has innovative projects to boost the circular economy and recycling of plastics in addition to offering original solutions for functional additives.
Kompuestos is adhering to the Global Commitment to the New Economy of Plastics to reducewaste and pollution generated by plastics at the source, promoting the circular economy of plastics, promoted by the Ellen McArthur Foundation in collaboration with the United Nations Environmental Programme (UN Environment).
Financial debt is reduced by 17.9% compared to 2018
The company's net financial debt was 11.7 million euros, 17.9% less than in the same period of the previous year. This decrease was the result of the operating cash flow generated during 2019, the 5 million euro capital increase and the lower disposal of short-term debt due to increased factoring, amortization and leasing.
The company's gross financial debt was 12.9 million euros, a decrease of almost 3.3 million euros compared to the same period last year.
It should be noted that on 7 March 2019, the company signed a syndicated loan for an aggregate amount of 10 million euros, in order to reorder the long-term debts and partially finance the company's current asset requirements.
Good reception from investors after debut at MAB
Kompuestos’ shares closed the 2019 market year at 2.90 euros per share, an increase of 17.4 % since its incorporation. The market capitalisation on incorporation into the MAB was 30 million euros.
Protocol for action against the COVID-19 pandemic
Kompuestos is dedicated to the manufacture of raw materials for theplastic packaging industry for the food and hygiene sector, an activity thathas not been halted by the declaration of the State of Alarm established by RD463/2020 of 14 March 2020, nor in its subsequent revisions. As a result, Kompuestos'production activity has remained operational and has continued to supply product tomanufacturers of essential products.
In addition, since 3 March, Kompuestos has implemented a safety protocol for all its employees that includes a work from home policy, flexibility agreements (making totally separate groups assigned to production to continue guaranteeing product supply) and limiting access to production plants. This protocol has been reinforced since 10 March with additional measures to protect the company's human team and guarantee the continuity of its operations.
Additionally, on 15 April 2020, the company reached a unanimous agreement with the representatives of the company's workers to present a Temporary Regulation of Employment File (Expediente de Regulación Temporal de Empleo) for productive, organizational and technical reasons under the protection of Royal Decree Law 8/2020, of 17 March, on extraordinary urgent measures to deal with the economic and social impact of COVID-19.
In order to have a high degree of flexibility in the face of the current environment of uncertainty, the agreement with the Company's workers' representatives provides for different scenarios and degrees of affectation for a total of 76 workers depending on the evolution of the impact of the COVID-19 health crisis, with a maximum duration of up to 31 December 2020. Furthermore, the agreement reached provides that the affected workers will receive a salary supplement from the Company that guarantees up to 80% of their salary.
For the time being, the two production plants are isolated from each other and both continue to operate. Kompuestos will analyze and take the necessary measures to ensure the flexibility of the operation in the face of market uncertainty and preserve the creation of value for shareholders.
Kompuestos, a listed company in Spanish Alternative Stock Exchange, is a leader in the production of sustainable plastic compounds in Europe. Based in Barcelona, it is one of the leading international suppliers of high-performance compounds aimed at reducing the carbon footprint in the production of plastics, which are used as raw material in multiple industries worldwide. Kompuestos has developed and certified a complete range of biodegradable products for the replacement of traditional plastics, especially in sensitive applications such as single-use bags and hard-to-recycle products. The company maintains a strong commitment to the environment. In this sense, it is positioned in favour of the circular economy of plastics and is committed to sustainable innovation by developing biodegradable and compostable products as well as mixtures with minerals that improve the imprint of CO2. The company is developing advanced technologies and plastic recycling additives so that they can be properly reused and the result is not second-rate products and difficult to apply.