Earnings Release • Jun 18, 2025
Earnings Release
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PRESS RELEASE Wednesday 18 June 2025
Increase in Turnover (9%) and Volumes Sold (+5%), albeit the adverse conditions
| ATHEX: | PLAT |
|---|---|
| Reuters: | THRr.AT |
| Bloomberg: | PLAT GA |
THRACE GROUP presents the financial results for the first quarter 2025.
During the first months of 2025, economic trends largely mirrored those of the previous year, as both macroeconomic factors and geopolitical tensions persisted. Concurrently, the threat of tariff imposition by the United States and the broader uncertainty it generates have created conditions of caution and anticipation regarding future developments, resulting in relative market stagnation. Overall, demand during the quarter followed the trajectory observed in the final months of 2024, remaining subdued—particularly in Central Europe and the United Kingdom.
In terms of the Group's business segments, the first quarter of the year was characterized by continued weak demand in the Technical Fabrics sector, albeit with a mild recovery in certain product categories. Demand in the Packaging sector remained stable.
Specifically, during the first quarter of 2025, the following trends were observed:
In financial terms, the Group's turnover for Q1 2025 amounted to €96.4 million, compared to €88.3 million in the same period of the previous year, representing an increase of 9.2%. This growth is attributed to both higher sales volumes (which increased by 5.0% year-over-year) and a moderate rise in average selling prices.
Regarding operating profitability, adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for Q1 2025 amounted to €9.4 million, marking a 23.7% decrease compared to Q1 2024 (€12.3 million). This decline in operating profitability compared to the previous year was largely expected, due to: (a) continued weak demand, particularly in the construction and agricultural sectors, and (b) the increase in the cost base, especially the rise in energy costs, as Group-level energy expenses were higher by €2.5 million compared to the same quarter of the previous year.
In terms of liquidity and the working capital cycle of subsidiaries, the Group's Net Debt stood at €48.1 million, up from €34.4 million at the end of 2024. This increase is mainly attributed to seasonality, which typically results in higher working capital requirements in the first quarter compared to the final quarter of each fiscal year. Nevertheless, the low level of Net Debt reflects the Group's strong financial position, the quality of its customer portfolio, and its capacity to invest while maintaining low leverage.
More specifically, the following table depicts the key financial figures of the Group during the first quarter of 2025, compared to the corresponding period in 2024:
| CONSOLIDATED FINANCIAL RESULTS (in € thous.) | 31/03/2025 | 31/03/2024 | Change (%) |
|---|---|---|---|
| Turnover | 96,444 | 88,347 | +9.2% |
| Volumes Sold | 31,126 | 29,645 | +5.0% |
| Gross Profit | 18,901 | 20,506 | -7,8% |
| ΕΒΙΤ | 2,414 | 6,077 | -60.3% |
| EBITDA | 9,154 | 12,279 | -25.4% |
| EBITDA Adjusted* | 9,372 | 12,279 | -23.7% |
| EBT | 1,203 | 4,963 | -75.8% |
| Earnings after Taxes | 533 | 3,380 | -84.2% |
| Earnings after Taxes and Non-Controlling Interests | 450 | 3,183 | -85.9% |
| Basic Earnings per Share (in €) | 0.0105 | 0.0741 | -85.8% |
*The Adjusted EBITDA does not include non-recurring expenses amounting to €218, associated with the restructuring of subsidiary Don & Low LTD, specifically related to employee severance payments.
As the second quarter of the year progresses, markets and economies exhibit characteristics largely consistent with those of the first quarter. Inflation remains stable, interest rates are unchanged, and raw material prices are declining—albeit with a lag—reflecting the persistently low demand. Additionally, energy costs are trending downward compared to Q1. In parallel, the recent crisis between Israel and Iran creates new conditions in that area, but also globally, while the level and duration of this crisis, as well as its potential impact in the economies and the market, remain unknown.
Given the limited time remaining in Q2 2025, it is not possible to provide a precise forecast for the Group's operating profitability (EBITDA) for the quarter. However, at the time of this report's preparation, it is estimated that the Group's EBITDA for the first half of 2025 will be at levels comparable to or slightly lower than those of the first half of the previous year. This suggests that the deviation observed in Q1 was temporary and is expected
to be largely offset in Q2, highlighting the Group's resilience, increasing market share, and continued strong operating profitability.
Regarding full-year profitability for 2025, despite significant uncertainty surrounding the global economic outlook—particularly in Europe—and the potential global impact of U.S. tariff policies, as well as the impact of the recent crisis between Israel and Iran, the Group Management estimates that EBITDA for 2025 will exceed the previous year's levels and may reach or surpass the operating profitability recorded in 2023 (EBITDA 2023: ~€44 million). Management continues to monitor market developments closely to ensure alignment with strategic objectives.
For further clarifications or information regarding the present release you may refer to the Department of Investor Relations and Corporate Announcements, tel.: + 30 210-9875081.
| STATEMENT OF COMPREHENSIVE INCOME (in € thousand) | 31/3/2025 | 31/3/2024 | Change (%) |
|---|---|---|---|
| Turnover | 96,444 | 88,347 | 9.2% |
| Gross Profit | 18,901 | 20,506 | -7.8% |
| Gross Profit Margin | 19.6% | 23.2% | |
| Other Income | 813 | 705 | 15.3% |
| Sales & Distribution Expenses | 11,482 | 9,890 | 16.1% |
| As % of Turnover | 11.9% | 11.2% | |
| Administrative Expenses | 4,514 | 4,166 | 8.4% |
| As % of Turnover | 4.7% | 4.7% | |
| Research & Development Expenses | 530 | 662 | -19.9% |
| As % of Turnover | 0.5% | 0.7% | |
| Other Expenses | 620 | 458 | 35.4% |
| Other Income / (Losses) | -154 | 42 | |
| ΕΒΙΤ | 2,414 | 6,077 | -60.3% |
| EBIT Margin | 2.5% | 6.9% | |
| EBITDA | 9,154 | 12,279 | -25.4% |
| EBITDA Margin | 9.5% | 13.9% | |
| Financial Cost (Net) | -734 | -833 | -11.9% |
| Earnings / (Losses) from Companies consolidated with the Equity Method |
-477 | -281 | 69.8% |
| EBT | 1,203 | 4,963 | -75.8% |
| EBT Margin | 1.2% | 5.6% | |
| Income Tax | -670 | -1,583 | -57.7% |
| Earnings after Taxes | 533 | 3,380 | -84.2% |
| EAT Margin | 0.6% | 3.8% | |
| EAT without Non-Controlling Interest | 450 | 3,183 | -85.9% |
| EAT without Non-Controlling Interest Margin | 0.5% | 3.6% | |
| Earnings per Share (in Euro) | 0.0105 | 0.0741 | -85.8% |
www.thracegroup.gr
| STATEMENT OF FINANCIAL POSITION | |||
|---|---|---|---|
| (in € thousand) | 31/03/2025 | 31/12/2024 | Change (%) |
| Property, Plant & Equipment | 194,589 | 193,529 | 0.5% |
| Right-of-use Assets | 2,755 | 3,065 | -10.1% |
| Investment Property | 113 | 113 | 0.0% |
| Intangible Assets | 10,625 | 10,226 | 3.9% |
| Investments in Joint Ventures | 18,483 | 20,430 | -9.5% |
| Net benefit from funded defined benefit plans | 6,777 | 5,980 | 13.3% |
| Other Long-term Receivables | 161 | 158 | 1.9% |
| Deferred Tax Assets | 842 | 815 | 3.3% |
| Total Non-Current Assets | 234,345 | 234,316 | 0.0% |
| Inventories | 84,035 | 85,105 | -1.3% |
| Income Tax Prepaid | 1,010 | 954 | 5.9% |
| Trade Receivables | 82,653 | 73,151 | 13.0% |
| Other Receivables | 10,109 | 7,166 | 41.1% |
| Financial derivative products | 122 | - | - |
| Fixed Assets held for sale | 1,685 | 1,698 | -0.8% |
| Cash & Cash Equivalents | 24,889 | 33,456 | -25.6% |
| Total Current Assets | 204,503 | 201,530 | 1.5% |
| TOTAL ASSETS | 438,848 | 435,846 | 0.7% |
| TOTAL EQUITY | 275,691 | 275,169 | 0.2% |
| Long-term Debt | 35,248 | 33,248 | 6.0% |
| Liabilities from Leases | 1,612 | 1,619 | -0.4% |
| Provisions for Employee Benefits | 1,986 | 1,907 | 4.1% |
| Deferred Tax Liabilities | 5,651 | 5,507 | 2.6% |
| Other Long-term Liabilities | 389 | 403 | -3.5% |
| Total Long-term Liabilities | 44,886 | 42,684 | 5.2% |
| Short term borrowings | 35,169 | 31,731 | 10.8% |
| Liabilities from Leases | 968 | 1,282 | -24.5% |
| Income Tax | 2,107 | 2,414 | -12.7% |
| Trade payables | 52,517 | 55,500 | -5.4% |
| Other Short-term Liabilities | 27,510 | 26,940 | 2.1% |
| Financial derivative products | - | 126 | - |
| Total Short-term Liabilities | 118,271 | 117,993 | 0.2% |
| TOTAL EQUITY & LIABILITIES | 438,848 | 435,846 | 0.7% |
FINANCIAL RESULTS PER BUSINESS SEGMENT
Q1
| STATEMENT OF CASH FLOWS (in € thousand) | 01/01/2025- 31/03/2025 |
01/01/2024- 31/03/2024 |
|---|---|---|
| Cash flows from operating activities | (2,648) | 8,790 |
| Cash flows from investing activities | (7,797) | (10,340) |
| Cash flows from financing activities | 2,093 | 2,573 |
| Net increase / (decrease) in cash and cash equivalents | (8,352) | 1,023 |
| Cash and cash equivalents at beginning of period | 33,456 | 27,801 |
| Effect from changes in foreign exchange rates on cash reserves | (215) | 157 |
| Cash and Cash Equivalents at end of period | 24,889 | 28,981 |
Alternative Performance Measures (APM): During the description of the developments and the performance of the Group, ratios such as the EBIT and the EBITDA are utilized.
EBIT (The indicator of earnings before the financial and investment activities as well as the taxes): The EBIT serves the better analysis of the Group's operating results and is calculated as follows: Turnover minus Cost of Sales plus other operating income minus the total operating expenses, before the financial and investment activities and taxes, The EBIT margin (%) is calculated by dividing the EBIT by the turnover.
EBITDA (The indicator of operating earnings before the financial and investment activities as well as the depreciation, amortization, impairment and taxes): The EBITDA also serves the better analysis of the Group's operating results and is calculated as follows: Turnover minus Cost of Sales plus other operating income minus the total operating expenses before the depreciation of fixed assets, the amortization of grants and impairments, as well as before the financial and investment activities, and before taxes, The EBITDA margin (%) is calculated by dividing the EBITDA by the turnover.
Adjusted EBITDA (The adjusted indicator of operating earnings before the financial and investment activities as well as the depreciation, amortization, impairment and taxes): The adjusted EBITDA equals with the EBITDA excluding any extraordinary Expenses/Income and any expenses in relation restructuring, mergers and acquisitions.
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