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Dębica SADebica tyre does not expect full recovery of production capacity after factory fire before Q4
Listed tyre producer Debica's, a subsidiary of Goodyear, had PLN 59.1 million (EUR 13.8 mln) net profit and nearly PLN 1.2 billion (EUR 281 mln) revenue, in line with estimates, the company said in a consolidated financial report. Debica estimates that the full restoration of production capacity after the factory fire in 2023 will take place no earlier than in the fourth quarter of 2024.
"In the first half of 2024, we generated satisfying financial results, despite the still tangible effects of the factory fire of August 2023, in which equipment for the production of passenger car tyres was affected," said Debica's CEO Ireneusz Maksymiuk, quoted in the press release.
He assessed that the company's financial and operational situation is stable, allowing it to focus on rebuilding the missing production capacity and strengthening its position and investing in brands.
"We anticipate that the full reconstruction of production capacity will take place no sooner than in the fourth quarter of 2024 due to the timing of the purchase and delivery of new production machinery, which should enable us to meet our business objectives in subsequent quarters," the CEO added.
Debica posted PLN 59.1 million (EUR 13.8 mln) net profit and nearly PLN 1.2 billion (EUR 281 mln) revenue in the first half of 2024, down from PLN 218.4 million (EUR 51.2 mln) net take and over PLN 1.7 billion (EUR 398.1 mln) revenue in the prior year period. EBIT fell by nearly 78 percent year on year to PLN 55.8 million (EUR 13.1 mln).
As reported, the company continues to suffer from the effects of the fire, both in the form of lower production volumes compared to the same period last year, and incurring the costs of unused capacity and clean-up costs (including capacity restoration). In total, these costs amounted to nearly PLN 87.3 million (EUR 20.5 mln) in the first half of 2024.
"In addition, during the same period, there were significant increases in property, plant and equipment of PLN 153 million, mainly in the area of fixed assets under construction (including industry machinery), most of which are related to the restoration of production capacity after the fire," the press release said.
"At the same time, the company recognized in other operating income an amount of PLN 151 million due to an advance payment received for compensation due related to the fire," it added.
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