Amica SA, Michał Rakowski - Członek Zarządu, #257 PREZENTACJE WYNIKÓW

The first half of 2019 continues the long-term sales expansion trend of the Amica Group. We achieved sales of nearly 1.4 billion PLN, a year-on-year growth of 47%. Operating profit and EBITDA reached 61 million and 88 million PLN respectively, with gross profit margin at 52.7%, slightly higher than in 2018. Net profit, affected by higher taxes, needs explanation: in 2018, we activated large investment expenditures due to tax relief, reducing the income tax burden. This year, we don't have that; we use tax reliefs from the special economic zone, so the additional burden is 11 million PLN. It's worth noting our cash position: the net debt to EBITDA ratio is at 1.35, significantly below covenants and at a safe level as per our strategy. We also paid dividends almost one-third higher at 1.14 PLN per share, and the cash situation is stable and safe. In the sales portfolio, Western Europe has the largest share at about 45%. Our activity on the German market shows about 99% growth in goods sales and 6% in heating equipment. France, acquired 72 years ago, is developing well with kitchen equipment sales up over 20%. The Polish market, second in portfolio, has satisfying growth of close to 89%, with refrigerators up 17%, microwaves over 60%, and heating equipment developing as expected. The Eastern market, particularly Russia, has a 15% decline, but we compensate with growth in other countries like Kazakhstan (33%). The Scandinavian market is stable, and Southeast Europe has stable growth of around 9%. This first half is a good moment for the rest of the year. Typically, October and November are peak sales periods for heating equipment, so these half-year results provide a good starting point to achieve our ambitious goals for the year.