AD Plastik, the Croatian manufacturer of auto plastic products, blamed suspension of Russian production due to the Ukraine war for a first quarter plunge of 97% for its net profit to 580,000 kuna (US$81,000/EUR77,000 euro).
“The business results of AD Plastik Group for the first three months of 2022 are somewhat worse than expected, which is mainly due to the consequences of the Russian-Ukrainian crisis,” CEO Marinko Dosen said in a quarterly report flied with the Zagreb bourse, cited by SeeNews.com.
“Challenges related to the lack of semiconductors in the market have continued in this year too, and stabilisation is expected in the second half of this year. At the same time, new circumstances and challenges directly affect the realisation of our factories in Russia, because car manufacturers in that market have stopped their production activities. Although our factories are ready to resume production, at the moment it is impossible to accurately predict when production in Russia will restart,” Dosen added.
Q1 2022 revenue fell 23% to 251.8 million kuna. EBITDA dropped 53% to to 24.7 million kuna.
Dosen said the primary task of the group in the coming period was to preserve financial stability and business sustainability.
“We are focused on the realisation of existing projects and expanding the portfolio of development and production projects, in order to strengthen our position as a development supplier in the European market. It will not be easy at all, but we are ready for different scenarios, depending on the further development of the situation and external factors that we cannot influence,” he said.