Kompuestos achieves revenues of 22.4 million euro in the first half of the year and strengthens its liquidity position
· In anticipation of the situation arising from the Covid-19, the company has followed a strategy to strengthen its liquidity position, increasing long-term resources by 4.0m euros compared to the same period in the previous year.
· Standardised Ebitda amounted to 1,236 thousand euros, 44.5% less than in the first half of 2019, due to the drop in generalised demand as a result oft he effects of Covid-19, especially on demand from manufacturers belonging to non-core activities.
· Kompuestos' activity was not halted by the declaration of a state of alarm, maintaining the activity of both plants and supplying product to essential industries.
· The international presence and the diversification of the sector constitute one of the company's great strengths in the face of the effects of he pandemic on the market.
· In the first half of 2020, Kompuestos has increased the number of new certifications for its compostable resins and Okean biodegradable and compostable plastic ranges by 70%.
Barcelona, 26 October 2020.Kompuestos (Plásticos Compuestos S.A.), a company listed on the BME Growth index and a leader in the production of sustainable compounds for plastics in Europe, has obtained revenues of 22.4million euros in the period from January to June 2020, which is 8.2% less than the same period in 2019, derived directly from the effects of the Covid-19pandemic on the demand from manufacturers belonging to non-core activities.This fall has been partly offset by an increase in demand from manufacturers of goods and products classified as essential.
After the state of emergency was declared and during its successive extensions, Kompuestos continued to operate normally as a supplier to essential need industries, applying security, distance and protection measures to ensure the well-being of its employees. This fact, together with Kompuestos' growing participation in international markets, made it possible to limit the decline in sales to a significantly lower level than that recorded by the general activity of the economy during this period.
At the same time, normalised Ebitda amounted to 1,236 thousand euros, 44.5% below the first half of 2019, due to the generalised fall in demand and as a result of the effects of Covid-19, especially on the demand from manufacturers belonging to non-core activities.However, the Company's gross operating margin remained at the same level of 29.7% compared to the same period in the previous year.
Variations in stocks of finished goods and work in progress increased by Euros 925 thousand in response to theCompany's strategy of guaranteeing supplies both to the market and to suppliers. Thus, supplies showed astable evolution in the first half of the year which, together with the stability in personnel expenses due to the maintenance of employment, allows the Company's operating capacities to be maintained intact in spite of its short-term impact on Ebitda.
In view of the situation arising from the pandemic at international level, the company has taken various measures to strengthen itself in the face of the different eventualities that may arise. Thus, one of the main measures it has undertaken has been to strengthen its liquidity position. The decisions adopted to protect the activity and liquidity set in motion made it possible to increase the generation of operational cash flow by 1.6 million euros, compared to the negative cash flow generation of close to half a million euros in the same period of the previous year. Also during this period, a greater effort was made to monitor investments, in accordance with the policy of restricting expenditure resulting from the current situation.
In addition, during this period, Kompuestos has provided itself with long-term financial resources under the ICO Avales Covid-19 lines, which has meant an increase in long-term debt in the period analysed of 4.0million euro, increasing the Company's total gross financial debt by 22.3%, which, however, thanks to the aforementioned liquidity protection measures, is in net terms 5.3% lower than at the end of December 2019.
International and multi-sector supplier: the strengths of Kompuestos
Kompuestos is present in morethan 44 countries, with sales outside the Spanishmarket representing around 69% of the total. Spain currently accounts for 40.7% of total turnover, followed byGermany with 20.6%, France with 12% and Scandinavia with 4.4%, as the mainforeign markets. Other regions account for the remaining 22.3% of sales.
This market diversification also translates into awide variety of sectors and plastic processing industries to which Kompuestossupplies its products. Thus, theseindustries have followed uneven behaviour in their demand following theCovid-19 pandemic, making it possible to limit the impact on Kompuestos' salesduring the first half of the year.
KOMPUESTOS' commitment to thecircular economy and the Ellen MacArthur Foundation
In the last year, Kompuestos has obtained 7 new certifications for its compostable resins and Okean ranges. This effort on the part ofKompuestos to develop more biodegradable and compostable products is essentialto offerbiodegradable and compostable alternatives that can replace everyday productssuch as bags, pens, coffee capsules, plastic cutlery, etc., with difficult collection or more complicatedrecycling processes. The interest of the processing industries in Kompuestos'bioplastic ranges continues to grow, as reflected by the fact that approvals for these productsamong the company's customers have increased by 53% in the last year.
Kompuestos has made a commitment to recyclingdifferent types of plastic to give these products a second life. In this sense,the company is continuously looking for new sources of recycled product to beable to reincorporate it into its product range. At the same time, Kompuestoscontinues to promote products such as Exfill, which allow for less use of thepolymer in the final products, reducing the carbon footprint.