Brzeg Dolny, Poland — Polyol supplier PCC Rokita had total sales of PLN 384.1m ($217m) in first quarter of 2019 up 6.00% on the equivalent period last year.
However, EBITDA across the business fell 3.7% and reached PLN 84.8m in the first quarter of 2019.
The company's polyurethane business sales rose 4.2% between Q1 2018 and the first quarter of 2019. They reached PLN 178.2m in the Q1 2019 period. This compares with PLN 171.1m in the equivalent period last year.
At the same time, EBITDA in the division fell 10.2%. It reached PLN 12.9m in the first quarter of 2019. This compares with PLN 14.4m in the equivalent period last year.
The company said the first quarter of 2019 was 'one of the most difficult periods in recent years.'
It put this down to the weak economic situation in the furniture industry and a very difficult situation in the automotive industry. These trends started in the last quarters of 2018.
In addition, there were ample supplies of polyether polyols on the market. Some of this Rokita attributed to Sadara.
Upstream of polyols, raw materials price rises added pressure to the business compared to the 2018 first quarter.
Despite these problems, sales volumes were up 4.4% and segment revenue rose compared with the first quarter of 2018. Sales of polyester polyols into rigid insulation and spray foam applications rose, Rokita added.
The company exports 10% of its output to Germany and 31% to other EU states, Asia accounts for 4% of the company's output, Poland 49% and others 6%. Polyols account for around 45% of Rokita's revenues.
| PCC Rokita numbers Q1 2019 ( PLN m) | |||
|---|---|---|---|
| Group | Q1 2019 | Q1 2018 | Change % |
| Sales | 384.12 | 362.37 | 6.00 |
| EBITDA | 84.84 | 88.08 | -3.68 |
| Margin % | 22.1 | 24.3 | -9.13 |
| Polyurethane | |||
| Sales | 178.23 | 171.128 | 4.15 |
| EBITDA | 12.889 | 14.361 | -10.25 |
| Margin % | 7.2 | 8.4 | |
| Source: PCC Rokita | |||
