Estimates of consolidated financial results for 2021 and Q4 2021
Due to the completion of the process of initial aggregation of the financial data for the 4th quarter 2021 and the whole fiscal year 2021, the Executive Board of Apator SA decided to make public the estimated data for these periods in view of possible shape of the financial results (adjusted by the influence of sale of real property in Poznań) at the levels differing from average levels obtained historically:
a) According to estimates, the basic financial data for 2021 will be as follows:
- consolidated sales revenues - approx. PLN 940.3 million,
- consolidated EBITDA - approximately PLN 150.2 million,
- consolidated net result - approx. PLN 62.7 million (consolidated net profit taking into account proceeds from the sale of real property in Poznań in the amount of PLN 27.6 million),
- consolidated net profit adjusted for the proceeds from the sale of real estate - about PLN 35.1 million.
b) According to estimates, the basic financial data for Q4 2021 will be as follows:
- consolidated sales revenues - approx. PLN 238.2 million,
- consolidated EBITDA - approximately PLN 19.2 million,
- consolidated net result - ca. PLN -1.5 million.
The influence on financial results had the tendencies, intensifying in 2021, particularly in its 4th quarter, of significant increase of manufacturing costs in the Apator Group (with the dynamics higher than expected), experienced in all segments, however, mostly concerning Electricity segment. The sales model, based in significant part on long-term contracts entered into through public tender procedures, provides limited opportunities to transfer cost inflation into final prices for the customer under ongoing contracts, mostly entered into between 2020 and 2021.
Manufacturing cost inflation, especially in materials, which has reached unprecedented levels in recent quarters, is a result of the disruption of supply chains due to the pandemic, as well as an increase in global demand for components and materials, which has significantly reduced their availability and consequently increased their prices.
The Executive Board points out that the scale of this phenomenon is unprecedented in decades and therefore - in its opinion - will be temporary. At the same time the Executive Board informs that active steps are taken in the area of renegotiation of contracts and changes in price lists for partners and distributors. Also, the bids submitted by the Group in current tenders and new price lists take into account inflationary mechanisms, among others in the area of prices of components, materials and other factors affecting the costs of production. These actions should bring stabilization and then a gradual improvement in margins in the 2022 perspective, especially in the Electricity segment.
At the same time, Q4 results were also adversely affected by the increase in foreign exchange rates in the last weeks of 2021 (especially USD), which translated into a negative result at the level of financial activities: foreign exchange differences and valuation of foreign currency transactions.
The Executive Board of Apator SA at the same time indicates that presented estimates of consolidated financial results:
- are preliminary results that have not been audited by statutory auditor,
- have been prepared according to the best knowledge possessed on the day of their preparation,
- have been prepared based on assumption that circumstances that could significantly affect financial results after the day of publication of estimated data will not be revealed.
The consolidated report for the fourth quarter of 2021 will be made public on February 28, 2022. And the consolidated audited annual report for 2021 will be published on April 28, 2022.
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