The ONICO Group generated almost PLN 7 million in EBIT in Q1 2019. This is a 27-percent increase on the corresponding period in the previous year and all that despite a nearly 20-percent drop in sales during that period, to PLN 546 million (PLN 682 million the year before). EBITDA showed a similar growth momentum, reaching PLN 7.5 million compared to PLN 5.9 million the year before. Standing at PLN 2.5 million, the Company’s profit was close to that posted last year in net terms. However, compared to the previous quarter, the net profit increase was almost two and a half fold.
According to the Company’s Board, Q1 is a particularly challenging time due to limited demand for liquid fuels such as diesel, gasoline or biofuels. The ONICO Group managed to maintain net profit at a level comparable to the last year’s performance despite weaker revenue. This was made possible by increasing unit margins on the products sold and by exercising tight cost control within the Group. Net unit margin saw a rise by 22 percent on the same period in 2018, up to 0.43%. The main goal for the upcoming quarters is to further improve the margins across sales segments.
As for sales, the past quarter was the third best Q1 performance on the Company’s record, behind the years 2017–2018, and net profit reached the best level seen in four quarters. The ONICO Group’s net profit swelled by an impressive 141 percent quarter-on-quarter.
Looking across the business segments, the Company has launched LPG deliveries to its newly acquired LPG terminal in Narewka, which, going forward, will help bring down the cost of third-party services and increase the product volumes offered in the European market. Concurrently, the Company has started upgrade works which are set for completion in June 2019. The Board believes that LPG supply capabilities increasingly play a role as a driver of the competitive advantage. The Board sees an opportunity to further grow its sales by using the capacities of the marine terminal in Gdynia in 2019.
In the fuel wholesale department, the ONICO Group continues imports of diesel to the Polish market from four independent sources. The recently sealed deals for fuel supplies to key customers have enabled effective margin management. According to the Board, this will improve the Group’s financial performance in the coming quarters.
The value of the Company’s equity has further risen, reaching the all-time high of PLN 69.88 million at the end of March 2019, compared to PLN 67.62 million at the end of 2018.