Thrace Plastics is a typical case of a company with excellent export and financial performance, but whose profitability, although improved, has been significantly undermined by rising costs of raw materials, transportation and energy. The company, which experienced explosive sales growth during the pandemic thanks to strong demand for masks and fabrics used to make protective uniforms and other supplies for nurses and doctors, managed to significantly outperform the corresponding nine months of 2019 in the nine months of this year. The period considered appropriate for comparison with this year, as sales made in connection with the pandemic are one-time.

In particular, pre-tax earnings (EBT) from the traditional product portfolio increased by 89.4%, while EBITDA increased by 67.1%. The corresponding increase is recorded in the net result. Turnover for the nine months of this year amounted to 316.06 million euros, compared to 254.35 million euros for the corresponding period in 2019. The increase in Thrace Plastics’ financial performance is accompanied by a corresponding increase in sales volumes and is not a simple reflection of inflation. However, the group’s management admits that “high inflation, a significant decline in demand as a result of uncertainty and attempts to reduce inventories by customers and the extremely high cost of energy are factors that are not under the radar.” the group’s sphere of influence and make the financial environment very challenging.”

Under these conditions, Plastics Thrace expects lower margins in the current current quarter compared to previous quarters of the year due to seasonality. However, management’s tally is promising that throughout the year “full-year profit margins will remain at significantly higher levels, more than doubling pre-pandemic levels, and total pre-tax profits well above expectations.” As of now, Plastics Thrace sees only a limited drop in raw material costs during the third quarter, significant increases in energy costs across its countries of operations with significant month-to-month fluctuations, and steady increases in transportation costs. , with only a small de-escalation on specific routes and a significant increase in the cost of recycled and packaging materials.” It is these facts that influence other groups in Greece, both in the plastics industry and in other areas of industrial activity. There was also a backlog in demand for most of the products of the agricultural sector and, of course, a significant limitation in demand for products associated with the pandemic.

On the contrary, Plastics Thrace management notes that the July-September period saw strong demand for products from the construction industry, infrastructure and large projects, and packaging products. At the same time, as the managing director of the group, Dimitris Malamos, explains, despite the unfavorable international situation, the group continues to implement both the planned and extraordinary investment plan with a total budget of $42 million for 2022. are financed to a large extent by their own funds and mainly concern facilities in Greece. They are part of a broader three-year investment plan for 2020-2022, which amounts to 102 million euros.