Ercros reduces its profit by 88.8% between January and September, to 5.7 million

Sales of finished products are 571.

Ercros reduces its profit by 88.8% between January and September, to 5.7 million

Sales of finished products are 571.7 million, 26.2% less

Ercros obtained a net profit of 5.7 million euros in the first nine months of this year, which represents a decrease of 88.8% compared to the same period in 2022, as the company reported to the National Commission this Wednesday. of the Stock Market (CNMV).

Ercros' sales of finished products amounted to 571.68 million euros at the end of September 2023, 26.2% lower than those achieved a year ago.

The gross operating result (Ebitda) of the group stood at 38.52 million euros until September, 58.6% less than that obtained in the same period of 2022.

The company has highlighted that the data for the first nine months of this year "confirm the downward adjustment" in the volume of products sold that it had already been observing since mid-2022.

In this sense, Ercros sold 774,000 tons of products until September compared to the 868,000 tons recorded in the same period of 2022, which represents a drop of 10.9%.

The company has also highlighted that the amount of sales falls more than the volume sold on a percentage basis, which anticipates a "significant" negative price effect.


Ercros has explained that these results have been achieved despite the fact that the demand for chemical products continues to show "signs of weakness, with very volatile markets, subject to growing competition and in full downward adjustment of prices and volumes."

"The drastic increase in energy and raw materials costs that the war in Ukraine caused in 2022 continues to distort the functioning of European economies," the company said.

For its part, the firm expects that by the end of this year, sales of finished products will be between 710 and 720 million euros; the adjusted Ebitda, between 45 and 55 million euros, and the profit, up to 10 million euros.

The company has explained that market consensus has delayed the start of demand recovery until the second half of next year.

For all these reasons, he predicts that the company's margins and volumes "will continue to be negatively affected in the fourth quarter of 2023."

In addition, the company has scheduled maintenance stops at its plants in the final part of the year, which will accentuate the drop in produced volumes.


By business, Ercros recorded a reduction in marketed volume of 10.9% year-on-year in the chlorine derivatives division, partly due to the termination of a supply contract at the end of last year.

The amount of sales in this division fell by 29.3%, since the reduction in volume was accompanied by a 20.4% drop in the average sales price.

The chemical division reduced its sales by 25.9% and the average price by 16.6%, while the pharmacy division increased its sales by 6.2%, having increased the volumes sold by 2.7%. and sales prices by 3.4%.