14.11.2014
Profit after three quarters rises, despite lower sales revenues
Financial performance of Tire Company Debica S.A. in Q3 2014 <br />
For three quarters of 2014 the Company posted a net profit at the level of PLN 113.1 million. It was up by 17.6 per cent compared to the previous year. In the same period the sales revenues totalled PLN 1 518.2 million and were down by 2.9 per cent. Profit was driven up by declining production costs that were reduced thanks to global programme of manufacturing activity optimisation and lower price of raw materials. An additional driver was the income tax relief the Company enjoys for the execution of investment project in the Special Economic Zone. Meanwhile in Q3 of this year alone sales revenues of Tire Company Debica S.A. totalled PLN 489.4 million and were down by 10.2 per cent compared to the same period in the previous year.
“Despite disadvantageous market environment in Q3 this year the products of Tire Company Debica S.A. strengthened their positions in the market segments they belong to, whereas net profit for the last three quarters was up compared to the same period in 2013. Such performance was mainly driven by the reduction of production costs, including mainly the costs of raw materials, and effective management system in the manufacturing area” – says Stanisław Cieszkowski, President of the Management Board of Tire Company Debica S.A.
For three quarters of 2014 Tire Company Debica S.A. generated sales revenues from related entities totalling PLN 1 333.2 million i.e. down by 50.9 million on a year-to-year basis. For three quarters of 2014 the sales to the Goodyear Group related entities accounted for 87.8% of total sales compared to 88.5 per cent in the same period of 2013. Meanwhile sales to the non-related entities totalled PLN 185.0 million, up by PLN 5.1 million on a year-to-year basis.
“Higher sales revenues and net profit was also driven by the sales of tires to non-related entities, which are not members of the Goodyear Group. This is a proof of competitiveness of our offer, in terms of prices but first and foremost in terms of high quality of tires made by Tire Company Debica” – said Stanisław Cieszkowski, President of the Management Board of Tire Company Debica S.A.
At the end of September 2014 the Company’s equity totalled PLN 990.5 million and was up by PLN 55.4 million, since the dividend payment for 2013 amounts to PLN 57.7 million, whereas net profit for three quarters of 2014 totals PLN 113.1 million.
“Despite disadvantageous market environment in Q3 this year the products of Tire Company Debica S.A. strengthened their positions in the market segments they belong to, whereas net profit for the last three quarters was up compared to the same period in 2013. Such performance was mainly driven by the reduction of production costs, including mainly the costs of raw materials, and effective management system in the manufacturing area” – says Stanisław Cieszkowski, President of the Management Board of Tire Company Debica S.A.
For three quarters of 2014 Tire Company Debica S.A. generated sales revenues from related entities totalling PLN 1 333.2 million i.e. down by 50.9 million on a year-to-year basis. For three quarters of 2014 the sales to the Goodyear Group related entities accounted for 87.8% of total sales compared to 88.5 per cent in the same period of 2013. Meanwhile sales to the non-related entities totalled PLN 185.0 million, up by PLN 5.1 million on a year-to-year basis.
“Higher sales revenues and net profit was also driven by the sales of tires to non-related entities, which are not members of the Goodyear Group. This is a proof of competitiveness of our offer, in terms of prices but first and foremost in terms of high quality of tires made by Tire Company Debica” – said Stanisław Cieszkowski, President of the Management Board of Tire Company Debica S.A.
At the end of September 2014 the Company’s equity totalled PLN 990.5 million and was up by PLN 55.4 million, since the dividend payment for 2013 amounts to PLN 57.7 million, whereas net profit for three quarters of 2014 totals PLN 113.1 million.