Ljubljana, Tuesday, 22 November 2016 – SIJ Group operations during the period January-September 2016 and the announcement of another issue of commercial papers
During the first nine months of 2016, the SIJ Group generated a sales revenue of EUR 637.9 million (an increase of 20.6% compared to the same period last year), EBITDA in the amount of EUR 82.5 million (an increase of 48% compared to the same period last year), and a net profit of EUR 28.5 million. The Group continued to maintain a high level of operational earnings, as the EBITDA margin amounted to 12.9% (a growth of 2.3 percentage points compared to the same period last year).
These results were generated in negative market conditions (price pressures) for both of the Group's activities (the main activity – metallurgy – and food); however, the difficulties were handled successfully by the efficient management of the production mix, the optimization of process and other costs, and increased sales volumes.
In metallurgy, the sales revenue in the first nine months totaled EUR 487 million, the EBITDA achieved was EUR 61.3 million (an increase of 10% compared to the same period last year) and the EBITDA margin was 12.6%, continuing to remain well above the global industry average. The 10.1% growth of the EBITDA/tonne indicator is evidence of the successful implementation of our strategy to increase the share of high added value products, including end steel products. Outflows for investments during this period increased by 38% (to EUR 62.9 million compared to the same period last year), mainly due to the previously launched investment in a new heat treatment line and investments in an AOD machine at SIJ Acroni (the value of both investments was over EUR 60 million).
In food (the Perutnina Ptuj Group), income in the first nine months of 2016 totaled EUR 185.4 million, the EBITDA achieved was EUR 19.1 million (an increase of 17% compared to the same period last year) and the net profit was EUR 9.2 million (an increase of 77% compared to the same period last year). The EBITDA margin of 10.3% is higher than last year (an increase of 1.6 percentage points), reflecting the focus on the cost optimization of operations and the increase in the sales share of products with higher added value on key markets. Following a capital increase and financial restructuring, the PP Group’s debts have decreased considerably (the net debt as of 30 September 2016 was EUR 40.5 million), creating a firm foundation for successful development in the coming years.
In order to diversify sources of finance and to refinance its current financial liabilities (last year's issues of commercial papers), SIJ d.d. has recently initiated the pre-sale process of the third consecutive issue of commercial papers on the Slovenian capital markets, which will conclude in mid-December this year; the anticipated value of the issue is up to EUR 25 million.
The SIJ Group is the largest Slovenian vertically integrated metallurgist group, ranked among the top market positions in the European and world niche steel markets. In addition to metallurgy (the basic activity), the SIJ Group is also involved in the food industry (investment in Perutnina Ptuj) and employs a total of some 7,000 people in Slovenia and abroad. With products available on over 80 markets worldwide, the SIJ Group is one of Slovenia's largest employers and exporters.
Dr. Denis Mancevič, Director of Corporate Communications
 Tibor Šimonka, the President of the Board of Directors of Perutnina Ptuj d.d., will present the detailed results of the company and PP Group’s operations at a press conference on Wednesday, 23 November, at 10.00 at the Perutnina Ptuj d.d. headquarters (Potrčeva cesta 10, Ptuj).