Press Release

15 May 2018, 11:24

Ergis Group results after 1st quarter of 2018: higher sale with decrease of profitability; negative impact of increase of remuneration and raw materials costs

ERGIS Group, the leader of plastics processing in Central and Eastern Europe, has published its final financial results after 1st quarter of 2018, which are consistent with previously published preliminary results. The Group recorded an increase of sales revenue by 4.3%, reaching PLN 191.2 million. Despite that, the company`s profitability deteriorated. EBITDA decreased by 20.6% to PLN 13.5 million and net profit fell by 38.7% to PLN 5.2 million.

The increase in wages made in the second half of 2017 as well as unfavourable prices of raw materials, mainly PET flakes, PVC, softeners and some additives, had an impact on lowering the profits year-on-year. The Group's results were also adversely affected by the lower than planned profitability of sales of rigid films and laminates for food packaging. The company recorded good results on the sales of stretch film and PET tapes

On May 9th 2018, the ERGIS SA Management Board announced that it will recommend, as in 2017, a dividend payment of PLN 0.20 per share. PLN 7.6 million was planned for this purpose.


Financial results of the ERGIS Group after Q1 2018 are presented below:

PLN thousand

Q1 2018

Q1 2017


Sales revenue








Operating profit




Net profit




Gross profit




Interest bearing debt




In the first quarter of 2018, sales of industrial packaging (stretch foils films and PET tapes) grew dynamically. There was also a significant increase in sales of rigid packaging films and compounds. The reduction in revenues from the sales of soft PVC films results, in particular, from the drop of sales of insulating films.

We are pleased to see growth in sales. It shows our expansion in Poland and other geographical zones areas of the EU. On the other hand, the decline in profitability reflects an increase in the costs of raw materials and labour as well as difficulties in convincing many customers to recognize the new realities of the market environment, which are associated with a higher level of prices. The Group focuses on activities that should allow for a restoration of normal profitability - said Tadeusz Nowicki, President of Ergis S.A.

In the first half of 2018, as announced, we will launch a new production line for PET films and laminates in Berlin. We have started the investment in another production line for stretch films in Oława. In 2018, capex is planned at a similar level as last year - said Tadeusz Nowicki.



The ERGIS Group, listed at the Warsaw Stock Exchange, holds the leading position in the plastics processing sector in Central and Eastern Europe. Out of its five manufacturing plants, four are situated in Poland and one in Germany. The Group`s profile includes manufacturing of packaging for food (printed multilayer laminates, and PVC and PET – based barrier films and laminates) and industrial packaging (LLDPE stretch films and PET binding tapes). Moreover, ERGIS is a manufacturer of films for packaging pharmaceuticals, hydro – insulating films and PVC compounds. In 2017 the Group`s revenue exceeded PLN 750 million.

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