Total expenses climbed from RON362 million to around RON563 million, a 55.6% increase, with water and energy expenditures almost tripling to RON194.6 million. In other words, the faster expenses growth pace against that of turnover weighed on the operating result, finally translating into a profitability decline.
„The first quarter shows that our business model is a successful one, even in times of crisis. Our commercial dynamics remain very good. The refinancing carried out in 2021 was done at the right time, which resulted in a 6-fold decrease in financial expenses. The results have evolved at a good pace, against the background of increasing our activities and further cost savings, thanks to the numerous operational synergies in the CRC Group. These good results, in the special and changed economic context compared to 2021, allow us to confirm all our goals for the entire year, with great confidence in Chimcomplex’s ability to achieve everything it has set out to do for 2022,” says Victor Avram, the company’s CEO.
The company, with RON5.7 billion capitalization at the Bucharest Stok Exchange, boosted its turnover amid the rising sale prices. But the higher expenses registered on the rising purchase prices for raw materials and utilities eroded the company’s profitability.
“The international market continues to be dominated by an exceptionally high level of uncertainty. We have set within the company a set of indicators that we follow every day to monitor what happens to the cost elements, to react and fulfill our strategic plans. Rising commodity prices, new sanctions against Russia, or the future course of the coronavirus pandemic are risks that we are already taking into account now in domestic analyses. We are alert, but focused on development”, adds Victor Avram.
Chimcomplex is the leading manufacturer and supplier of vital chemicals in the region, specializing in polyols, Chlor-alkali and Oxo-Alcohols.
(English version by Catalina Apostoiu)