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Introduction & Market Context
AD Plastik (ADPL) has released its financial results for 2024 and the first quarter of 2025, showing a significant turnaround in profitability despite operating in a challenging automotive market environment. The presentation, delivered on April 29, 2025, highlights the company’s return to profitability in 2024 and continued margin expansion in early 2025.
The European automotive market, which represents AD Plastik’s primary customer base, showed modest growth of 0.8% in 2024 with 10.6 million new car registrations. However, the market contracted by 1.9% in Q1 2025. Notably, the powertrain mix continues to evolve rapidly, with hybrids (HEV) overtaking gasoline as the dominant technology in Q1 2025, representing 35.5% of new registrations compared to 28.7% for gasoline vehicles.
As shown in the following chart of the EU automotive market composition:
2024 Financial Performance Highlights
AD Plastik Group achieved operating revenue of €152.4 million in 2024, representing a 17.9% increase compared to 2023. The company’s domestic division (AD Plastik D.D.) saw even stronger growth of 22.9%, reaching €116.0 million. This growth was primarily driven by new projects and tool effects.
The revenue performance is illustrated in the following chart:
More importantly, profitability metrics showed substantial improvement. EBITDA reached €13.4 million with an 8.8% margin, compared to €7.2 million and a 5.6% margin in 2023. This improvement was attributed to revenue growth, better capacity utilization, and higher profitability of new projects.
The EBITDA performance is demonstrated in this chart:
The company returned to net profitability in 2024, reporting €2.1 million in net profit (1.4% margin) compared to a loss of €1.3 million in 2023. The domestic division recorded a slight decline in net profit to €0.4 million from €1.0 million in the previous year, primarily due to impairment charges related to its Mladenovac investment.
The net profit turnaround is shown in the following chart:
AD Plastik also made significant progress in strengthening its balance sheet, reducing net financial debt by 12.1% to €40.4 million. This deleveraging was achieved through tool collection and working capital management.
The debt reduction trend is illustrated here:
Q1 2025 Results Analysis
The first quarter of 2025 showed a shift in strategy, with the company prioritizing profitability over revenue growth. Operating revenue declined by 16.9% to €35.2 million, primarily due to lower tool revenue compared to the same period in 2024, though the company noted growth in revenue from serial production.
Despite lower revenue, profitability metrics improved substantially. EBITDA increased to €4.4 million with a margin of 12.5%, up from 8.7% in Q1 2024. This improvement was driven by the profitability of new projects and increased capacity utilization.
The EBITDA margin expansion is shown in this chart:
Net profit showed the most dramatic improvement, reaching €4.0 million with an 11.3% margin in Q1 2025, compared to just €1.1 million and a 2.5% margin in Q1 2024. This quadrupling of net profit margin was attributed to EBITDA-related effects, positive exchange rate differences, and contributions from the EAPS joint venture.
The significant net profit improvement is illustrated here:
The company’s affiliated joint venture, EAPS, continued to perform strongly with Q1 2025 revenue of €42.4 million, EBITDA of €6.3 million (14.9% margin), and net profit of €4.4 million. The JV benefited from full production volumes, high capacity utilization, and strong profitability of new vehicle programs.
Sustainability Initiatives
AD Plastik has made significant progress on sustainability metrics, which the company highlighted as a strategic priority. In 2024, the company reduced electricity consumption by 2.1%, water consumption by 7.3%, and improved its injury rate by 22.3%. Most notably, the proportion of recycled material increased by 46.0%, and waste recycling more than doubled with a 101.5% improvement.
The sustainability improvements are illustrated in this chart:
The company has received strong external validation of its sustainability efforts, earning an Ecovadis Gold rating (placing it in the top 5% of companies) with a score of 73, and a Bloomberg ESG score of 87.63. AD Plastik also maintains ISO 14001 and IATF 16949 certifications across all European production sites.
Forward-Looking Statements
Looking ahead, AD Plastik provided guidance for the next three years, targeting annual revenue growth of 6% from its own products, annual capital expenditures of €5 million, and an EBITDA margin of 12%. The company secured new deals worth €126.8 million in Q1 2025, providing a foundation for future growth.
The company’s main strategic focus areas for 2025 include deleveraging and restructuring, increased capacity utilization, and continued profitability growth, while managing expected lower tool revenue.
AD Plastik’s current stock price stands at €10.45, trading above its 52-week low of €8.50 but below its 52-week high of €13.20, suggesting investors are still assessing the sustainability of the company’s financial turnaround despite the improved profitability metrics.
Full presentation:
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