Romanian compostable packaging producer Promateris (BVB: PPL, formerly Prodplast) said its revenues shrank by 21% y/y to RON 69 million (EUR 14 million) in H1, while the EBITDA plunged by 77% y/y to RON 2.68 million and the bottom line turned into RON 4.90 million losses from RON 5.11 million net profit in the same period last year.

The company explained that the P&L statement was severely impacted by the strategic decision to convert its PVC (polyvinyl chloride) pellets production line to compostable pellets (BioMateris) production line. Furthermore, the delivery of new equipment was unexpectedly delayed.

Another factor that influenced the company's results was the increase in energy costs in 2022, with an impact also in the first half of 2023, but also the increase in wages and the number of employees.

Promateris has planned investments of EUR 8 million this year in the new BioMateris business line, but also to increase its production capacities and diversify the product range, modernise and increase the efficiency of the existing production lines, reduce the carbon footprint and purchase new equipment. The impact of the new investments will become visible starting from the second semester of the year, the company's management said.

PPL's market capitalisation is currently RON 287 million (EUR 58 million).

iulian@romania-insider.com

(Photo source: Promateris.com)