2015-05-15 12:03 Thomas Kalwat, president of Synthos [photo: Synthos SA] 
About 18 percent. fell in the first quarter consolidated revenues from sales of Synthos. As the company explains the main reason for fluctuation in fuel prices, which at low prices created downward pressure on rubber prices, and with the increase in oil prices limited the possibility of renegotiating prices at an early date.
the stock market reacted negatively to the news of poor performance. The share price of the company after more than two hours of trading on the Warsaw Stock Exchange falling by 1.7 percent. and shares of Synthos are the weakest of the WIG20 index, which gained 0.1 percent.
The increases in oil prices led to problems in adjusting the prices of the recipients of products Synthos. Synthos Group revenues fell by 18 percent. to 974 million zł (of 1186 million zł year earlier), but also the group’s consolidated results: EBITDA by 39 per cent., and EBIT by 51 per cent. and net profit by 15 percent.
| Synthos Group’s financial results in the first quarter | ||||
|---|---|---|---|---|
| million zł | Q12015 | Q12014 | Change% | change million zł |
| income | 974.1 | 1186 1 | -17.9 | -212.0 |
| EBIT | 63.5 | 128.4 | -50.5 | -64.9 |
| EBITDA | 101.8 | 167.0 | -39.0 | -65.1 |
| Net profit | 91.7 | 108.6 | -15.2 | -16.4 |
| operating cash flows | 214.2 | 103 3 | 107.4 | 110.9 |
| investment flows | -163.0 | -34.2 | 376.8 | -128.8 |
| financial flows | 26.0 | 101.5 | -125.6 | -127.5 |
| EBIT margin% | 6.5 | 10.8 | -39.8 | -4.3 pts. % |
| EBITDA margin% | 10.5 | 14.1 | -25.7 | -3.6% pts. % |
Source: Money.pl a quarterly report Synthos
Despite a series of rather negative data from the US economy in the past … At low crude oil prices had to lower product prices. After their …
Brent crude oil prices have increased since the beginning of the year by 16 percent. After previous declines in fuel prices Synthos had to reduce the prices of their products, now has a problem with their adaptation to the new conditions in a competitive market.
Recipient 77 percent. the sales volume of rubber tire producers are Michelin, Continental, Goodyear and Pirelli.
The first quarter saw what true increase in sales in the automotive industry in the European Union by 8.6 per cent., but also dropped the price of raw materials, which account for 69 percent. Synthos group sales. These prices are linked to oil price and at lower their prices created strong pressure on prices of synthetic rubber. Oil price rebound only after a delay allows renegocację prices for the products Synthos. This factor works negatively both in the area of rubber, which styrenopodobnych products.
Rubber accounted for 49 percent. Group sales in the first quarter. Their sales fell by 23 percent. (-140 Million zł), and operating profit EBITDA by 39 percent. (-34 Million zł).
Significant sales structure are styrene plastics: polystyrene used in the panels for thermal insulation, food packaging, disposable utensils and construction industry. They gave 36 percent. revenues (-23 per cent. and -109 million zł), but only 9 percent. EBITDA (-82 per cent., -43 Million zł).
Synthos gained while in the segment of dispersion adhesives and latex, that is, products for the construction chemicals industry and the furniture industry and wood. The growing construction industry meant that Synthos revenue in this segment increased by 12 percent. (+4 Million zł), and EBITDA by 84 percent. (+2 Million zł).
As much as 23 percent. EBITDA (23 million zł), Synthos had in a segment of “media”, ie investment in the energy sector that have let to generate income from waste produced by group Synthos.
New in the activities of Synthos is a segment Agro, including plant protection products and biocides. Sales segment was supported by an advertising campaign, which was to give the products offered by the company so far Organika Azot became the property of Synthos Agro. Synthos achieved in this segment zł 6 million in EBITDA, which is 6 percent. profit group.
| Revenue by Segment | |||||
|---|---|---|---|---|---|
| million zł | Q12015 | Q12014 | structure | Change% | modification million zł |
| rubbers | 481, 9 | 622.0 | 49.5 | -22.5 | -140.2 |
| styrenopodobne | 354.3 | 462.9 | 36.4 | -23.5 | -108.6 |
| dispersions, adhesives, latex | 42.9 | 38.4 | 4.4 | 11.6 | 4.5 |
| Media | 63.3 | 57.2 | 6.5 | 10.7 | 6.1 |
| Agro | 27.1 | 0.0 | 2.8 | – | 27.1 |
| together | 974.1 | 1186.1 | 100.0 | -17.9 | -212.0 |
Source: Money.pl a quarterly report Synthos
| EBITDA by Segment | |||||
|---|---|---|---|---|---|
| ebitda | Q12015 | Q12014 | structure | Change% | modification million zł |
| rubbers | 52.9 | 86.6 | 51.91236977 | -39.0 | -33.8 |
| styrenopodobne | 8.8 | 51.5 | 8.619656903 | -83.0 | -42, 7 |
| dispersions, adhesives, latex | 3.9 | 2.1 | 3.842414839 | 83.6 | 1.8 |
| Media | 23.0 | 21.3 | 22.58903935 | 7.8 | 1.7 |
| Agro | 5.9 | 0.0 | 5.790626197 | – | 5.9 |
| together | 101.837 | 167.0 | 100 | -39.0 | -65.1 |
Source: Money.pl a quarterly report Synthos
Capital expenditures
As much as 72 percent . capital expenditures in the first quarter, the company realized in the segment of rubber. Currently the largest investment group is building a rubber factory at Auschwitz. A total investment in this project will amount to about 555 million zł.
8 percent. Investment segment, “media” or energy production using waste produced by the group and the construction of flue gas desulphurization istalacji.
| Capital expenditures by segment | |||||
|---|---|---|---|---|---|
| capital expenditure | Q12015 | Q12014 | structure | Change% | change zł |
| rubbers | 128.4 | 40.7 | 72.3 | 215.7 | 87, 7 |
| styrenopodobne | 7.9 | 3.1 | 4, 4 | 156.6 | 4.8 |
| dispersions, adhesives, latex | 0.2 | 0.1 | 0.1 | 148.9 | 0.1 |
| Media | 14.7 | 14.1 | 8.3 | 4.3 | 0.6 |
| Agro | 9.2 | 0.0 | 5.2 | – | 9.2 |
| together | 177.5 | 64.7 | 100.0 | 174.2 | 112.8 |
Source: Money.pl a quarterly report Synthos
Recommendations Synthos
This year’s recommendations suggested all the possible strategies regarding the company’s shares, ie sell through the hold, to kupuj.Ostatnia – ING Securities suggested buying shares of Synthos, and 4,9-4,91 recent valuation price zł (after today’s fall in the price reached a level of 4,67 zł).
| Date | price of recommendation | valuation | recommendation | institution |
|---|---|---|---|---|
| 2015-04-09 | 4.69 | – | Buy | ING Securities |
| 2015-03-27 | 4.31 | 4.91 | Accumulate | Erste Securities DI |
| 2015-03-12 | 4.42 | 4.9 | Hold | Raiffeisen |
| 2015-03-04 | 4.43 | 4.15 | Sell | DM BZ WBK |
Source: Money.pl
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