STA, 9 March 2022 - Chemical company Cinkarna Celje, which specialises in titanium dioxide production, posted a net profit of EUR 33.2 million for 2021, a year-on-year increase of 75%. Driven by exports, sales rose by 12% to EUR 192.5 million, according to an unaudited report released on Wednesday.
Profit before income tax, depreciation and amortisation (EBITDA) was up by 58% to EUR 51.8 million and operating profit (EBIT) surged by 77% to EUR 40 million.
The company says the increase in sales was driven by robust demand in all markets and the total value of exports reached EUR 175.1 million, up 11% year-on-year.
"There is currently a shortage of titanium dioxide supply on the market, which is reflected in year-on-year increases in prices," the press release says.
While significantly higher prices of titanium dioxide in Asia have generated higher demand for products from western multinationals and local producers, input-side pressure also increased, driving up the prices of raw materials.
Going forward, the company sees "high uncertainty" due to the current geopolitical situation. Higher energy prices in Europe than in Asia and North America "could have a stronger impact on the competitiveness of the supply of European producers," it says.
However, the company has a significant cash buffer, with cash assets rising by 59% to EUR 59.7 million at the end of the year.
