Sanok Rubber Company working on further potential acquisitions outside automotive sector

"The apparent weakness of the markets in Europe is a negative development, but at the same time we are trying to take advantage of the opportunities that such a situation creates for us," said the CEO of Sanok Rubber Company Piotr Szamburski, quoted in the press release.

"We remain optimistic about the long-term effects of our development and optimisation measures and acquisition processes. We intend to continue acquisitions in segments outside of automotive," he added.

In the third quarter, Sanok Rubber Group increased its revenue by 4 percent year on year to PLN 374.7 million (EUR 86.4 mln) and recorded a 10 percent year-on-year increase in EBITDA to PLN 40.9 million (EUR 9.4 mln).

The company's operating profit rose by 8 percent year on year to PLN 22.7 million (EUR 5.2 mln) and the net profit increased by 41 percent to PLN 22.8 million (EUR 5.3 mln).

The company said that in the first three quarters of 2024, it recorded a significant increase in sales in the industrial segment (the effect of the acquisition of Teknikum) and to a symbolic extent in the construction segment.

The automotive and compounds segments and the spa business, on the other hand, recorded declines.

"A clearly worse segment result concerned automotive (down by PLN 11 million), while a significant year-on-year increase (up by PLN 30 million) was recorded by the industrial segment which is obviously due to the consolidation of Teknikum's results," Sanok Rubber Company said in the press release.

"The increase of PLN 1.1 million in the profit of the construction segment corresponded to the deterioration of the results of the compounds segment and the stagnation of the transmission business, including in particular belts and agricultural machinery," it added.

Sanok said that the financing of the Teknikum acquisition of PLN 160 million (EUR 36.9 mln) had jumped the net debt to EBITDA ratio from 0.2 at the end of 2023 and 0.5 at the end of the first quarter 2024 to 1.9 at the end of the mid-year, with the ratio falling to 1.7 as of September.

seb/ ao/ nl/