Biggest chemical group in Romania remains profitable despite 34% drop in sales in H1

Romanian group Chimcomplex (BVB: CRC), the leading producer and supplier of vital chemicals in the region, registered a net profit of RON 49.65 million (approximately EUR 10 million) in the first half of 2023, down by 68% compared with the same period of 2022, as its turnover dropped by 34% to RON 790 million (EUR 160 million).

“Romania's economy suffered a significant contraction, with a 39% decrease in quantitative volumes in the first half of 2023. Chimcomplex, located at the beginning of the national economic chain, reports a turnover 34% lower compared to the same period of the previous year, following the general trend of the economy,” the group said in a report to the Bucharest Stock Exchange.

Operating at half capacity, the company made efforts to reduce costs and streamline operations in the first half of 2023.

“Expenses decreased significantly, reducing them by 49% for utilities (electricity, natural gas, water) and 45% for all other raw materials. This contributed to an operating profit margin of 10%, despite the reduction in turnover,” the group said.

In Q4 of last year, Chimcomplex implemented crisis prevention measures, including a restructuring program for 389 positions and the temporary shutdown of some production facilities. These measures had a positive impact on the company's financial situation, allowing it to end the first half of 2023 on profit.

“Chimcomplex, being a medium-sized company in the European Union, managed to recover faster than the big players, showing a solid adaptive capacity. In the next semester, we will launch three new measures that will absorb the turbulence generated by the multiple crises that Romania's economy is going through. We forecast a stagnation of the European economy for the next semester, followed by an improvement in the outlook for the chemical market in Europe,” said Stefan Vuza, President and CEO of Chimcomplex.

(Photo source: the company)