PCC Rokit (PCR) Q2 2024 earnings summary

Executive summary

• Revenue for 1H 2024 was 1,000.3 million PLN, down 25% year-over-year from 1,340.7 million PLN in 1H 2023.

• EBITDA for 1H 2024 was 166.8 million PLN, down from 308.7 million PLN in 1H 2023, a 46% decrease.

• Net profit for 1H 2024 was 46.1 million PLN, a 70% decrease from 155.7 million PLN in 1H 2023.

• The chlorinated derivatives segment remained the largest contributor but saw a 74% drop in EBITDA, while polyurethanes improved EBITDA by 103% year-over-year.

• A dividend of 133 million PLN was distributed in May 2024.

Financial highlights

• Gross margin for 1H 2024 was 220.3 million PLN, compared to 369.3 million PLN in 1H 2023.

• Operating profit for 1H 2024 was 73.2 million PLN, down from 206.1 million PLN in 1H 2023.

• Net cash from operating activities was 166.6 million PLN, down from 303.1 million PLN in 1H 2023.

• Capital expenditures for 1H 2024 were 9.98 million PLN.

• Total assets as of June 30, 2024, were 2,451.4 million PLN, with equity at 1,295.7 million PLN.

Outlook and guidance

• Market conditions remain challenging, especially for chlorinated derivatives, but stabilization is noted in demand and prices in the latter part of 1H 2024.

• Polyurethanes segment shows signs of recovery, though profitability is still not fully satisfactory.

• Ongoing investment projects include expansion of production capacities and infrastructure, with significant capital commitments.

• Management expects no significant seasonality or cyclicality in results.

• The group is monitoring the impact of international tax reforms and regulatory changes.