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IZOBLOK publishes financial results for Q1 2017/2018

The sales revenue of the Corporate Group equaled PLN 52,960 thousand., which is 136.4% growth compared to the previous year. The consolidated EBIDTA was at a level of PLN 5,667 thousand, thus reaching profitability at the level of 10.7% of the sales revenue value. At a unit level, IZOBLOK S.A. achieved sales revenue of PLN 20,907 thousand, with a decrease of 6.7% compared to Q1 2016/2017. In the light of the dynamics of operational activity costs (+0.8%), the Company copes well with optimization activities in this area, which is also reflected in the EBIDTA profitability at the level of 14.6% with a value of PLN 3,062 ths for Q1 2017/2018.

On the one hand, the first quarter of the financial year was difficult for us, but at the same time it was very important for several reasons. The slowdown of the automotive sector, felt by all market players, as well as finishing part of our projects, led to the decrease of sales revenue; however, new projects which are now at the implementation stage, will improve the results at this level in future periods. For several quarters, our consistent focus was on cost reduction areas. This is reflected in the very low dynamics of their increase (0.8%). It is even more important considering that the costs of depreciation, foreign services and remuneration due to the increase of employment at the Group companies are showing a market growth tendency. We are continuously optimizing production processes at IZOBLOK GmbH at the level of quality, production, staffing, waste cost and energy cost management through the implementation of modern IT solutions, among others. As per our statements, we have been executing systematic activities aimed at renewing our machinery park at IZOBLOK GmbH. In Q1 2017/2018 the German company was fitted with a manufacturing machine capable of replacing 4 smaller ones. This is an important step due to the optimization activities conducted at the German company. The tool shop also gained a new machine in Q1 2017/2018. The development of our own tool shop is an important element of the IZOBLOK Group’s growth, because it will allow for increasing the flexibility and reaction time at the stage of implementation and batch production. IZOBLOK is preparing for the purchase of other machines for Plant 3 at Kluczborska street, which will be used for the execution of projects contracted for the turn of 2018/2019. Moreover, in Q1 2017/2018 we finished two investments related to the erection of gas boiler rooms for Plant 1 and Plant 3, which will have a positive impact on reducing energy costs in future periods. We are also preparing for the switch from ISO/TS 16949:2009 to IATF 16949:2016. This is a complex and very demanding process. In accordance with the adopted growth direction, our Group is working also on acquiring projects related to the manufacturing of new generation seats, which involve combining EPP with metal elements or other plastics. It is worth noting that, as a result of R&D works conducted in 2014–2015, IZOBLOK developed innovative technology solutions in this respect, which evoke big interest from leading automotive companies from the OEM and TIER groups. – says Przemysław Skrzydlak, CEO of IZOBLOK S.A.

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