Promateris (BVB: PPL), a Romanian industrial group and leader in Central and Eastern Europe in the production of biodegradable and compostable packaging, posts a consolidated turnover of 42.7 million lei in the first three months of 2022, a 22% increase compared to the same period of last year, EBITDA of 4.6 million lei and a net profit of 1.2 million lei.
“The results for the first three months of 2022 are positive, considering the difficult market context caused by the war in Ukraine and the inflationary environment. Turnover exceeded the all-time high in 2021 when Promateris grew by 61% year on year. EBITDA remained at the historical level of last year, and net profit decreased by 39% compared to Q1 2021, amid the economic situation that led to a sharp rise in interest rates. Our main goal was to increase sales, consolidate our position in the markets in which we operate, and secure existing clients, even if this meant, at times, a decrease in margin due to the short-term internalization of cost increases. In 2022, we will continue our investment strategy in developing the group’s business to consolidate its leading position in the CEE region,” stated Tudor Georgescu, CEO of Promateris.
Promateris has a policy based on sustained growth by making investments in the development of production capacities and the diversification of the product portfolio. In the first quarter of 2022, this led to an increase in equipment depreciation, which partially impacted the company’s net income for this period. At the EBITDA level, the company registered an increase of 1% compared to Q1 2021, managing to maintain a high level in the context of commodity price volatility by transferring a significant part of the price increases on the value chain.
Long-term liabilities increase reconfirms Promateris’ strategy to continue investing in the company’s development and production capacity. Promateris aims to consolidate its position as a regional leader in Central and Eastern Europe in the production of low-
Promateris’ product portfolio is in line with the European Green Deal principles and European legislation and directives to reduce food waste. For the past five years, Promateris has developed international partnerships with renowned research centers in Europe, with top manufacturers in the sustainable packaging industry and equipment manufacturers specialized in developing innovative, low-carbon solutions. These partnerships place the Promateris group at the top of the companies with the CEE’s most developed biodegradable and compostable packaging portfolio. Promateris currently sells products made in Romania in several countries in the region and aims to strengthen its position in these markets and expand into new markets.