Grupa Recykl increased its operations scale by 7.4% in the period of January-September 2024, surpassing 100 million PLN after 9 months for the first time in its history. There was a significant increase in the dynamics of operating profits (+22.6% y/y at 15.5 million PLN) and net income (+30.0% y/y at 9.7 million PLN). In September, the company completed the due diligence processes related to potential acquisition processes in Germany and Lithuania, and began analyzing the results as a precursor to potentially agreeing on transaction terms. The management expects conclusions and decisions to be made by the end of this year.
In the third quarter of 2024, the sales and profit dynamics of Grupa Recykl were higher compared to the cumulative period, with revenues at 12.6% (reaching 36.1 million PLN) and a 38.8% higher EBIT income (5.1 million PLN) and a 67.4% increase in net income (3.4 million PLN). At the same time, at the end of September, the net financial debt of the Group fell to 69.7 million PLN, down 3.1% y/y.
“The systematic growth of Grupa Recykl’s market position in Central and Eastern Europe and its further internationalization is reflected in the sales, financial and operational results achieved in another successful quarter for our company. However, we are equally pleased with the progress of a number of new initiatives that could impact the mid-to long-term horizon. M&A processes are progressing as planned, and their, as we believe, positive resolutions will further increase our exposure in international markets. However, regardless of these, we are consistently increasing the scale of our exports, which are aided by our presence at key industry events, such as those recently held in Italy or Azerbaijan. Our key area of growth remains Europe, but we also have high hopes for the absorptive markets in Asia, especially India, where we are successfully placing the first batches of our key product, Mineral Asphalt Additive SMAPOL,” said Maciej Jasiewicz, President of the Management Board of Grupa Recykl S.A.
In the sales structure of products and services, the group “recovery services and tire recycling” achieved the highest growth dynamics (both in the third quarter and cumulatively) generating 24.7 million PLN in revenues since the beginning of the year (+ 29.5%). The most significant in terms of total sales was the “sale of tire processing products”, whose revenues of 58.9 million PLN in the period of January-September constituted 58.4% (simultaneously an increase of 3.3% y/y). Analyzing the tonnage structure of the above group, the sales volume of the key product of pure SBR rubber granules was 46.3 thousand tons (+16% y/y).
“Despite the constant actions in the context of foreign markets, the Polish market remains key for Grupa Recykl and the situation in the industry is important to us. Both in business terms and broader looking at our vision, mission, and assumptions in the field of sustainable development strategy. In this context, in recent months we participated in the creation of the first expert report on the long-term dysfunctions of the tire recycling system. The study contains a market analysis and recommendations for changes in tire recycling and the use of recyclates obtained in these processes. We hope that it will constitute a starting point for discussions and changes concerning society as a whole, including as symbolic as the elimination of illegal tire dumps,” added Maciej Jasiewicz.
The report was published by the Polish Association of Tire Recyclers (of which Recykl Organizacja Odzysku S.A. is a member) and was for the first time presented at two industry events in Poznań in October, terms Poleco – the Environment Protection Fair and the Recycling Forum. The findings include information that the Polish market in the European Union is a leader in terms of the lowest effective level of tire recycling and recovery, and the highest number of unmanaged tires; for 17 years, the limits on recovery and recycling have not changed in the context of ensuring compliance of the Polish act with the European waste directive; every thousandth tire sold ends up on one of the “illegal dumps” located in one of the 57 investigated municipalities and forest districts, and almost every fourth pneumatic tire introduced into circulation is burned in cement furnaces (as opposed to being passed on to mechanical recycling, enabling the saving of 56 thousand tons of CO2 equivalent per year). In addition to this, the document comments on the existing myths associated with tire disposal and contains a number of market data and statistics (e.g., supply of tires in Poland or analysis of the situation in the other EU countries regarding the limits of recovery and recycling).
Source: https://managerplus.pl/grupa-recykl-po-iii-kwartalach-br-z-ponad-100-mln-zl-przychodow-i-30-proc-wzrostem-zysku-netto-86239
