2016 Half Year Result Overview
During the first half of 2016 the Keramet Group of Companies has increased its production and sales volume of scrap metal for more than 40%.
From January to June 2016 there was processed and sold 210 467 ton of scrap metal for the total amount of 987 916 thousand UAH, while in the same period of the year 2015 there was sold 148 thousand ton.
The Hungarian subsidiary – Keramet Hungary Kft. – purchased 121 473 ton of scrap for the first 6 months of 2016, Keramet Polska Sp. z o.o. in Poland – 22 943 ton, and enterprises in Ukraine – 66 051 ton. Net profit of the Group in the first half of 2016 made up 67 346 thousand UAH.
The Group of Companies in Ukraine transferred more than 11 million UAH of taxes and fees during this period (including 4.3 million UAH of income tax and 2.76 million UAH of single social contribution).
EBITDA rose by more than 4%: from 86 336 thousand UAH in 2015 to 90 069 thousand UAH in 2016. At the same time, EBIT showed 11% growth, and amounted to 83 062 thousand UAH.
The Group invested in production facilities more than 10 million UAH, from which about 8.5 million UAH were invested by Keramet Hungary Kft, while PJSC Keramet invested in the Ukrainian enterprises about 5 million UAH for this period.
It is also planned to invest in Keramet Polska Sp. z o.o. in the total amount of about 25 million UAH in 2016. "The company's plan is to expand the scrap metal collecting base in Europe since the situation on the domestic market isn’t favourable", – said Director General of PJSC Keramet Volodymyr Bubley.
In 2016 the company Keramet has not exported scrap metal. The whole amount of scrap from Ukrainian enterprises has been sold exceptionally on the domestic market. Subsidiaries – Keramet Hungary Kft. and Keramet Polska Sp. z o.o. – have provided themselves completely with raw materials from Europe.
Volodymyr Bubley has noted the current market situation as unfavourable: "The scrap metal price offered today on the domestic market is not economically justified, so the volume of scrap metal collection in Ukraine will only shrink. Due to the loss of export the market will decrease by at least 30%. To revivify the market we need to develop a dialogue between its members and to make changes to the existing legal framework".