Plastika Kritis has shown remarkable resilience to the adverse conditions created by the pandemic in 2020, achieving an increase in profitability of close to 29 percent. The largest company in Crete, ranked in the top seven in Europe in its field, is moving consistently against the trend of deindustrialization in Greece and now has a significant international footprint, with nine production units in seven countries and a sales network in 75 countries on five continents.
The group has completed half a century of operation and is constantly innovating and conquering new markets. It produces products aimed at the plastics industry as raw materials, in the agricultural sector as well as in water resources management and environmental protection projects. It produces master batches (where it is a pan-European leader), plastic sheets for agricultural applications, geomembranes, polyethylene pipes, recycled plastics and energy from renewable sources.
The company's products cover thousands of greenhouses and organized crops of all kinds throughout Greece and abroad. The group consolidates in its results eleven subsidiaries, as it has companies in Greece (two), Romania, Poland, Turkey, China (two), France, Russia (two) and Cyprus. At the end of 2020 the group employed 1,127 people and the company 457 people, compared to 1,069 people and 440 on 31.12.2019 respectively.
At the helm of the group since 1992 are the two sons of the founder Ioannis Lempidakis, Manolis and Michalis, who continue the development of the company, with emphasis on extroversion, modernization and the verticalization of activities.
The company's Shanghai plant has laid the groundwork for growth in the vast Asian market. With an annual production capacity of 30,000 tons, today a significant part of the production of Shanghai HiTeC Plastics Co. - the subsidiary of the Greek company - is exported to the USA, Canada, New Zealand, Australia, the Far East and the N.A. Asia, with sales exceeding 30 million euros per year.
Now, a new factory is being prepared in the Chinese province of Anui, through an investment of 18 million euros. The new unit is being built in the Hexian Jiangbei Wujiang New Area industrial area of Anhui Province.
Plastika Kritis performed well amidst the pandemic showing double digit growth. Consolidated turnover amounted to 304.6 million euros (+ 5 percent on an annual basis), while operating profit amounted to 70.5 million euros (+ 26 percent) and net profit after taxes to 49.327 million euros, against 38,352 million euros in 2019, recording an increase of 28.62 percent. It is noted that profitability was negatively affected by losses from exchange differences amounting to almost 1.5 million euros.
Prospects for 2021
The company estimates that the prospects for 2021 are positive, as the demand for the products is at satisfactory levels. The outlook for 2021 is positive despite the continuing impact of the pandemic on the international economy. The main sectors in which the company's products target, agricultural crops and the plastics industry, have not been significantly affected and therefore the demand for its products remains solid.
Regarding the increase in the price of raw materials, the company has ensured adequate supply levels, while at the same time trying to pass on the increased costs in order to maintain gross profit margins.
Within 2020, the group made several investment moves, both in Greece (Crete) and abroad, such as in Poland (the installation of five production lines was completed), Romania and China (the construction of large storage areas of 10,800 sq.m. was completed ).
Shares in the company closed yesterday at a new high of 18 euros with an increase of 1.7 percent, with the capitalization of the group reaching 492 million euros, which brings it to 25th position on the Athens bourse.