PCC Rokit (PCR) Q2 2024 earnings summary

Executive summary

• EBITDA for 1H 2024 was 166.8 million PLN, down 46% year-over-year, with net profit at 46.1 million PLN, a 70% decrease compared to 1H 2023.

• Revenue for 1H 2024 exceeded 1 billion PLN, representing a 25% decline from 1H 2023.

• Q2 2024 EBITDA increased 54.6% sequentially to €23.6 million, with sales up 3.6% year-over-year to €243.9 million.

• Gross profit rose 55.1% year-over-year to €88.9 million, with gross margin improving to 36.5% from 31.2% in the previous quarter.

• Commissioned a second oxyalkylates production line in Malaysia and completed a generational change in executive leadership.

Financial highlights

• 1H 2024 consolidated revenue: 1,000.3 million PLN (down from 1,340.7 million PLN in 1H 2023).

• EBITDA: 166.8 million PLN (down from 308.7 million PLN in 1H 2023); H1 EBITDA at €38.9 million, below prior year due to higher personnel and service costs.

• Net profit: 46.1 million PLN (down from 155.7 million PLN in 1H 2023).

• Operating cash flow: 73.2 million PLN (down from 206.1 million PLN in 1H 2023).

• Capital expenditures for 1H 2024: 9.98 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.

• H1 2024 results in line with expectations; positive trends in several segments expected to continue.

• Ongoing focus on expanding US market presence and further efficiency gains in logistics.

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

• Ongoing investment projects continue, including expansion of production capacities and new facilities.