DEBICA | SA-Q 3/2019 |
- adjusted
POLISH FINANCIAL SUPERVISION AUTHORITY
Quarterly Report SA-Q | 3/2019 |
Quarter/year |
(pursuant to the provisions of § 60 par. 1 item 1 of the Ordinance on current and periodic information) (for the issuers of securities running manufacturing construction trading or service activities)
for Q3 of the accounting year 2019 covering the period from 1 July 2019 to 30 September 2019
Filing date: 14 November 2019 | |||||||
TIRE COMPANY DĘBICA SA | |||||||
DEBICA | (full name of issuer) | ||||||
Automotive | |||||||
Abbreviated name of issuer | (sector according to WSE classification) | ||||||
39-200 | Dębica | ||||||
(postal code) | (place) | ||||||
ul. 1 Maja | 1 | ||||||
(street) | (number) | ||||||
(014) 670-28-31 | 014 670-09-57 | ||||||
(phone) | (fax) | ||||||
www.debica.com.pl | |||||||
(e-mail) | (Web site ) | ||||||
872-000-34-04 | 850004505 | ||||||
(Tax ID - NIP) | (REGON Statistical No.) | ||||||
FINANCIAL HIGHLIGHTS | '000 PLN | '000 EUR | |||||
3 quarters on | 3 quarters on | 3 quarters on | 3 quarters on | ||||
YTD | YTD | YTD | YTD | ||||
basis/2019 | basis/2019 | basis/2019 | basis/2019 | ||||
period from 1 | period from 1 | period from 1 | period from 1 | ||||
Jan. 2019 to 30 | Jan. 2019 to 30 | Jan. 2019 to 30 | Jan.2019 to 30 | ||||
Sept. | 2019 | Sept. 2019 | Sept. 2019 | Sept. 2019 | |||
I. Net sales of products merchandise and materials | 1 578 604 | 1 468 681 | 366 385 | 345 289 | |||
II. Operating profit (loss) | 96 636 | 95 361 | 22 429 | 22 419 | |||
III. Gross profit (loss) | 97 706 | 97 737 | 22 677 | 22 978 | |||
IV. Net profit (loss) | 92 455 | 91 521 | 21 458 | 21 517 | |||
V. Operational cash flows net | 45 634 | 58 189 | 10 591 | 13 680 | |||
VI. Investment activity cash flows | net | 91 954 | 84 799 | 21 342 | 19 936 | ||
VII. Financial activity cash flows | net | -3 307 | 7 309 | -768 | 1 718 | ||
VIII. Total net cash flows | 134 281 | 150 297 | 31 166 | 35 335 | |||
IX. Total assets (at closing of current quarter and at closing of | 1 791 906 | 1 691 457 | 409 710 | 393 362 | |||
previous year) | |||||||
X. Liabilities and liabilities provisions (at closing of current | 654 556 | 579 205 | 149 661 | 134 699 | |||
quarter and at closing of previous year) | |||||||
XI. Long-term liabilities (at closing of current quarter and at | 3 951 | 3 995 | 903 | 929 | |||
closing of previous year) | |||||||
XII. Short-term liabilities (at closing of current quarter and at | 574 799 | 512 700 | 131 425 | 119 233 | |||
closing of previous year) | |||||||
XIII. Equity (at closing of current quarter and at closing of | 1 137 350 | 1 112 252 | 260 049 | 258 663 | |||
previous year) | |||||||
XIV. Initial capital (at closing of current quarter and at closing of | 110 422 | 110 422 | 25 247 | 25 680 | |||
previous year) | |||||||
XV. Number of shares (at closing of current quarter and at closing | 13 802 750 | 13 802 750 | 13 802 750 | 13 802 750 | |||
of previous year) | |||||||
XVI. Earnings (loss) per ordinary share (in PLN / EUR) | 6.70 | 6.63 | 1.55 | 1.56 | |||
XVII. Diluted earnings (loss) per ordinary share (in PLN/EUR) | 6.70 | 6.63 | 1.55 | 1.56 | |||
XVIII. Book value per share (in PLN/EUR) (at closing of current | 82.40 | 80.58 | 18.84 | 18.74 | |||
quarter and at closing of previous year) | |||||||
XIX. Diluted book value per share (in PLN/EUR) (at closing of | |||||||
current quarter and at closing of previous year) | 82.40 | 80.58 | 18.84 | 18.74 | |||
XX. Declared or paid dividend per share (in PLN/EUR) | 4.88 | 6.50 | 1.12 | 1.49 | |||
The Report should be filed with the Polish Financial Supervision Authority (PFSA). the company running regulated market and made public through news agency in compliance with effective law.
Polish Financial Supervision Authority
DEBICA | SA-Q 3/2019 |
CONDENSED FINANCIAL STATEMENT
BALANCE-SHEET
'000 PLN | |||||
As of 30 Sept. 2019 | As of 30 June | As of 31 Dec. | As of 30 Sept. | ||
end of quarter/2019 | 2019 end of | 2019 end of | 2015 end of | ||
previous/quarter | previous | quarter/2018 | |||
/2019 | year/2018 | ||||
ASSETS | |||||
I. Fixed assets | 774 654 | 784 516 | 799 182 | 788 896 | |
1. Intangible assets of which: | 0 | 0 | 0 | 0 | |
2. Tangible fixed assets | 756 938 | 767 172 | 789 702 | 778 586 | |
3. Long-term investments | 74 | 74 | 144 | 144 | |
3.1. Long-term financial assets | 74 | 74 | 144 | 144 | |
a) in other entities | 74 | 74 | 144 | 144 | |
4. Long-term deferred assets | 17 642 | 17 270 | 9 336 | 10 166 | |
4.1. Deferred income tax assets | 17 642 | 17 270 | 9 328 | 10 159 | |
4.2. Other prepayments and accruals | 0 | 0 | 8 | 7 | |
II. Current assets | 1 017 252 | 1 009 635 | 892 275 | 972 580 | |
1. Inventories | 108 289 | 106 460 | 93 806 | 93 136 | |
2. Short-term receivables | 452 724 | 436 285 | 354 551 | 418 452 | |
2.1. From related entities | 394 511 | 387 827 | 319 412 | 355 742 | |
2.2. From other entities | 58 213 | 48 458 | 35 139 | 62 710 | |
3. Short-term investments | 451 672 | 461 405 | 442 419 | 457 169 | |
3.1. Short-term financial assets | 451 672 | 461 405 | 442 419 | 457 169 | |
a) in related entities | 225 000 | 225 000 | 350 000 | 225 000 | |
b) in non-related entities | 11 452 | ||||
c) cash and cash equivalents | 226 672 | 236 405 | 92 419 | 220 717 | |
4. Short-term prepayments | 4 567 | 5 485 | 1 499 | 3 823 | |
T o t a l a s s e t s | 1 791 906 | 1 794 151 | 1 691 457 | 1 761 476 | |
LIABILITIES | |||||
I. Shareholders' equity | 1 137 350 | 1 118 482 | 1 112 252 | 1 114 021 | |
1. Share capital | 110 422 | 110 422 | 110 422 | 110 422 | |
2. Reserve capital | 327 224 | 327 217 | 327 178 | 327 171 | |
3. Revaluation capital | 65 334 | 65 341 | 65 380 | 65 387 | |
4. Other reserve capitals | 541 915 | 541 915 | 519 520 | 519 520 | |
5. Net profit (loss) | 92 455 | 73 587 | 89 752 | 91 521 | |
II. Liabilities and liabilities provisions | 654 556 | 675 669 | 579 205 | 647 455 | |
1. Liabilities provisions | 75 806 | 71 105 | 62 510 | 53 168 | |
1.1. Provision for deferred income tax | 36 056 | 33 177 | 25 532 | 22 580 | |
1.2. Provision for retirement benefits and equivalents | 34 098 | 30 699 | 36 046 | 29 573 | |
a) long-term | 9 168 | 9 251 | 9 707 | 8 788 | |
b) short-term | 24 930 | 21 448 | 26 339 | 20 785 | |
1.3. Other provisions | 5 652 | 7 229 | 932 | 1 015 | |
a) long-term | 189 | 174 | 139 | 200 | |
b) short-term | 5 463 | 7 055 | 793 | 815 | |
2. Long-term liabilities | 3 951 | 4 096 | 3 995 | 3 301 | |
2.1. to other entities | 3 951 | 4 096 | 3 995 | 3 301 | |
3. Short-term liabilities | 574 799 | 600 468 | 512 700 | 590 986 | |
3.1. to related entities | 161 927 | 162 610 | 85 012 | 159 578 | |
3.2. to other entities | 410 894 | 435 567 | 426 889 | 429 977 | |
3.3. Special funds | 1 978 | 2 291 | 799 | 1 431 | |
T o t a l l i a b i l i t i e s | 1 791 906 | 1 794 151 | 1 691 457 | 1 761 476 | |
Book value | 1 137 350 | 1 118 482 | 1 112 252 | 1 114 021 | |
Number of shares | 13 802 750 | 13 802 750 | 13 802 750 | 13 802 750 | |
Book value per share (in PLN) | 82.40 | 81.03 | 80.58 | 80.71 | |
Diluted number of shares (pcs.) | 13 802 750 | 13 802 750 | 13 802 750 | 13 802 750 | |
Diluted book value per share (in PLN) | 82.40 | 81.03 | 80.58 | 80.71 | |
Note: In case of reports for Q1 of the accounting year only the first (as of the end of Q1 of the current accounting year) third (as of the end of previous accounting year) and fourth column (as of the end of Q1 of the previous accounting year).
Polish Financial Supervision Authority
DEBICA | SA-Q 3/2019 | |||
OFF-BALANCE ITEMS | ||||
'000 PLN | ||||
As of 30 Sept. 2019, | As of end of 30 June | As of 31 Dec. | As of 30 Sept. 2019, | |
end of quarter/2019 | 2019, end of | 2019, end of | end of quarter/2019 | |
previous | previous | |||
quarter/2019 | year/2018 | |||
From other entities of which: | ||||
received warranties and sureties | ||||
From other entities in which the issuer has an equity stake of which: | ||||
received warranties and sureties | ||||
1. Other of which: | 9 988 | 644 | 3 070 | 3 687 |
off-balance liabilities under a long-term gas supply contract | 9 006 | 643 | 1 609 | 2 091 |
off-balance liabilities under a long-term real estate lease | 982 | 1 | 1 461 | 1 596 |
agreement | ||||
Total off-balance items | 9 988 | 644 | 3 070 | 3 687 |
Note: In case of reports for Q1 of the accounting year only the first (as of the end of Q1 of the current accounting year) third (as of the end of previous accounting year) and fourth column (as of the end of Q1 of the previous accounting year).
PROFIT AND LOSS ACCOUNT
'000 PLN | ||||||
Q3 /2019 period | 3 quarters YTD / | Q3 /2018 | 3 quarters YTD / | |||
from 1 July 2019 | 2019 period from 1 | period from 1 | 2018 period from 1 | |||
to 30 Sept. 2019 | Jan. 2019 to 30 | July 2018 to | Jan. 2018 to 30 | |||
Sept. 2019 | 30 Sept. | Sept. 2018 | ||||
2018 | ||||||
A. Net sales of products merchandise and materials including: | 511 891 | 1 578 604 | 499 691 | 1 468 681 | ||
- from related entities | 458 663 | 1 419 227 | 443 828 | 1 306 322 | ||
1. | Net sales of products | 458 815 | 1 419 290 | 444 597 | 1 321 734 | |
2. | Net sales of merchandise and materials | 53 076 | 159 314 | 55 094 | 146 947 | |
II. Cost of products merchandise and materials sold including: | 482 663 | 1 456 235 | 466 558 | 1 354 477 | ||
- to related entities | 438 301 | 1 316 267 | 423 523 | 1 225 968 | ||
1. | Cost of products sold | 437 946 | 1 314 970 | 423 669 | 1 230 256 | |
2. | Cost of merchandise and materials sold | 44 717 | 141 265 | 42 889 | 124 221 | |
III. Gross profit (loss) on sales | 29 228 | 122 369 | 33 133 | 114 204 | ||
IV. Selling expenses | 3 321 | 10 633 | 3 296 | 9 434 | ||
V. General administrative expenses | 2 110 | 5 867 | 1 825 | 8 775 | ||
VI. Profit (loss) on sales | 23 797 | 105 869 | 28 012 | 95 995 | ||
VII. Other operating income | 56 | 122 | 909 | 1 944 | ||
1. | Gain on disposal of non-financial fixed assets | 25 | 15 | 883 | 1 837 | |
2. | Revaluation of non-financial fixed assets | 7 | 28 | |||
3. | Other operating income | 31 | 107 | 19 | 79 | |
VIII. Other operating expenses | 1 797 | 9 355 | 770 | 2 578 | ||
1. | Revaluation of non-financial fixed assets | 1 674 | 1 900 | 33 | ||
2. | Other operating costs | 123 | 7 455 | 770 | 2 545 | |
IX. Operating profit (loss) | 22 056 | 96 636 | 28 151 | 95 361 | ||
X. Financial income | 1 649 | 4 685 | 1 896 | 4 564 | ||
1. | Dividends and shares in profits, of which: | 106 | 452 | 452 | ||
a) receivables from related entities, of which: | 0 | 0 | 0 | |||
- in which the issuer holds equity stake | 0 | 0 | 0 | |||
b) from non-related entities including: | 106 | 452 | 452 | |||
- in which the issuer holds equity stake | 106 | 452 | 452 | |||
2. | Interest receivable including: | 1 649 | 4 579 | 1 444 | 4 112 | |
- from related entities | 1 110 | 2 961 | 1 045 | 3 284 | ||
XI. Financial expenses | 1 190 | 3 615 | 3 618 | 2 188 | ||
1. | Interest payable including: | 1 039 | 1 824 | 913 | 1 803 | |
2. | Other | 151 | 1 791 | 2 705 | 385 | |
XII. Profit (loss) on ordinary activities | 22 515 | 97 706 | 26 429 | 97 737 | ||
XIII. Income tax | 3 647 | 5 251 | 2 547 | 6 216 | ||
a) current portion | 1 140 | 3 040 | 2 251 | 4 202 | ||
b) deferred portion | 2 507 | 2 211 | 296 | 2 014 | ||
XIV. Net profit (loss) | 18 868 | 92 455 | 23 882 | 91 521 | ||
Net profit (loss) (annualized) | 90 686 | 97 915 | ||||
Weighted average number of the ordinary shares (pcs.) | 13 802 750 | 13 802 750 | ||||
Earnings (loss) per ordinary share (in PLN) | 6.57 | 7.09 | ||||
Diluted weighted average number of the ordinary shares (pcs.) | 13 802 750 | 13 802 750 | ||||
Diluted earnings (loss) per ordinary share (in PLN) | 6.57 | 7.09 |
Polish Financial Supervision Authority
DEBICA | SA-Q 3/2019 |
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
'000 PLN | ||||
Q3 /2019 period | 3 quarters YTD / | Q3 /2018 | 3 quarters YTD / | |
from 1 July 2019 | 2019 period from 1 | period from 1 | 2018 period from | |
to 30 Sept. 2019 | Jan. 2019 to 30 | July 2018 to | 1 Jan. 2018 to | |
Sept. 2019 | 30 Sept. 2018 | 30 Sept. 2018 | ||
I. Opening balance of shareholders' equity | 1 118 482 | 1 112 252 | 1 112 218 | 1 112 218 |
Ia. Opening balance of shareholders' equity after restatement to | 1 118 482 | 1 112 252 | 1 112 218 | 1 112 218 |
comparative data | ||||
1. Opening balance of share capital | 110 422 | 110 422 | 110 422 | 110 422 |
1.1. Closing balance of share capital | 110 422 | 110 422 | 110 422 | 110 422 |
2. Opening balance of reserve capital | 327 217 | 327 178 | 326 144 | 326 144 |
2.1. Changes in reserve capital | 7 | 46 | 1 034 | 1 034 |
a) additions (of which) | 7 | 46 | 1 034 | 1 034 |
- transfer from reserve capital of the sums of liquidated revaluated | 7 | 46 | 1 034 | 1 034 |
fixed assets - current period | ||||
2.2. Closing balance of reserve capital | 327 224 | 327 224 | 327 178 | 327 178 |
3. Opening balance of revaluation capital | 65 341 | 65 380 | 66 414 | 66 414 |
3.1. Changes in revaluation capital | -7 | -46 | -1 034 | -1 034 |
a) reductions (of which) | 7 | 46 | 1 034 | 1 034 |
- transfer from reserve capital of the sums of liquidated revaluated | 7 | 46 | 1 034 | 1 034 |
fixed assets - current period | ||||
3.2. Closing balance of revaluation capital | 65 334 | 65 334 | 65 380 | 65 380 |
4. Opening balance of other reserve capital | 541 915 | 519 520 | 489 664 | 489 664 |
4.1. Changes in other reserve capital | 0 | 22 395 | 29 856 | 29 856 |
a) additions (of which) | 0 | 22 395 | 29 856 | 29 856 |
- allocation to the reserve capital from the profit distributed for the | 0 | 22 395 | 29 856 | 29 856 |
year 2017/2018 with an option of distribution among shareholders. | ||||
4.2. Closing balance of other reserve capital | 541 915 | 541 915 | 519 520 | 519 520 |
5. Opening balance of retained earnings | 73 587 | 89 752 | 119 574 | 119 574 |
5.1. Opening balance of retained earnings | 73 587 | 89 752 | 119 574 | 119 574 |
5.2. Opening balance of retained earnings after the restatement to | 73 587 | 89 752 | 119 574 | 119 574 |
comparative data | ||||
a) reductions (of which) | 0 | 89 752 | 119 574 | 119 574 |
- dividend for shareholders | 0 | 67 357 | 89 718 | 89 718 |
- allocation to the reserve capital from the profit distributed for the | 0 | 22 395 | 29 856 | 29 856 |
year 2014 with an option of dividend payment to the shareholders | ||||
- allocation to the reserve capital from the profit distributed for the | 73 587 | 0 | 0 | 0 |
year 2017/2018 with an option of distribution among shareholders | ||||
5.3. Closing balance of retained earnings | 73 587 | 0 | 0 | 0 |
5.4. Closing balance of retained earnings (losses) | 18 868 | 92 455 | 89 752 | 91 521 |
6. Net profit (loss) | 18 868 | 92 455 | 89 752 | 91 521 |
a) net profit | 1 137 350 | 1 137 350 | 1 112 252 | 1 114 021 |
II. Closing balance of shareholders' equity | 1 137 350 | 1 137 350 | 1 112 252 | 1 114 021 |
III. Shareholders' equity adjusted by the proposed distribution of profit | 1 118 482 | 1 112 252 | 1 112 218 | 1 112 218 |
(loss coverage) |
Polish Financial Supervision Authority
DEBICA | SA-Q 3/2019 | ||||
CASH FLOW STATEMENT | |||||
'000 PLN | |||||
Q3 /2019 period | 3 quarters YTD / | Q3 /2018 period | 3 quarters YTD / | ||
from 1 July 2019 | 2019 period from 1 | from 1 July 2018 to | 2018 period from 1 | ||
to 30 Sept. 2019 | Jan. 2019 to 30 | 30 Sept. 2018 | Jan. 2018 to 30 | ||
Sept. 2019 | Sept. 2018 | ||||
A. Operational cash flows | |||||
I. Net profit (loss) | 18 868 | 92 455 | 23 882 | 91 521 | |
II. Total adjustments | -16 757 | -46 821 | 20 928 | -33 332 | |
1. Depreciation and amortization | 23 128 | 69 424 | 24 465 | 75 052 | |
2. Foreign exchange gains/losses | -11 | 29 | 101 | 61 | |
3. Interest and dividends | -561 | -2 402 | -1 312 | -3 299 | |
4. Investment activity gain (loss) | -79 | 721 | -184 | -1 298 | |
5. Change in provisions | 4 700 | 13 296 | 2 589 | -1 801 | |
6. Change in inventories | -1 829 | -14 482 | 5 845 | 14 008 | |
7. Change in receivables | -16 440 | -98 174 | -876 | -126 160 | |
8. Change in current liabilities (excluding loans and bank credits) | -26 212 | -3 929 | -9 690 | 16 011 | |
9. Change in deferred and accrued expenses | 547 | -11 374 | -10 | -5 906 | |
10. Other adjustments | 0 | 70 | 0 | 0 | |
III. Net operational cash flows (I+/-II) indirect method | 2 111 | 45 634 | 44 810 | 58 189 | |
B. Investment activity cash flows | |||||
I. Cash inflows | 1 459 | 190 105 | 74 009 | 203 796 | |
1. Disposal of intangible assets and tangible fixed assets | 349 | 2 038 | 2 512 | 5 060 | |
2. From financial assets of which: | 1 110 | 3 067 | 1 497 | 3 736 | |
a) in related entities | 1 110 | 3 067 | 1 497 | 3 736 | |
- dividends and shares in profits | 0 | 106 | 452 | 452 | |
- interest received | 1 110 | 2 961 | 1 045 | 3 284 | |
3. Other investment inflows | 0 | 185 000 | 70 000 | 195 000 | |
II. Cash outflows | 12 084 | 98 151 | 83 779 | 118 997 | |
1. Acquisition of intangible assets and tangible fixed assets | 12 084 | 38 151 | 13 779 | 48 997 | |
2. Other investment expenses | 0 | 60 000 | 70 000 | 70 000 | |
III. Net investment activity cash flows (I-II) | -10 625 | 91 954 | -9 770 | 84 799 | |
C. Financial activity cash flows | -32 | ||||
I. Cash inflows | 0 | 0 | 9 423 | 9 423 | |
1) Loans and borrowings | 0 | 0 | 9 423 | 9 423 | |
II. Cash outflows | 1 230 | 3 307 | 765 | 2 114 | |
1. Payment of liabilities under lease contracts | 681 | 2 642 | 580 | 1 677 | |
2. Interest expense | 549 | 665 | 185 | 437 | |
III. Net financial activity cash flows (I-II) | -1 230 | -3 307 | 8 658 | 7 309 | |
D. Total net cash flows (A.III+/-B.III+/-C.III) | -9 744 | 134 281 | 43 698 | 150 297 | |
E. Change in balance-sheet cash and cash equivalents of which: | -9 733 | 134 252 | 43 597 | 150 236 | |
- change in cash and cash equivalents due to foreign exchange | 11 | -29 | -101 | -61 | |
gains/losses | |||||
F. Opening balance of cash and cash equivalents | 236 412 | 92 386 | 177 119 | 70 521 | |
G. Closing balance of cash and cash equivalents (F+/- D) of which: | 226 667 | 226 667 | 220 817 | 220 817 | |
- those with restricted availability | 1 978 | 1 978 | 1 431 | 1 431 |
NOTES TO THE Q3/2019 FINANCIAL STATEMENT
Drawn up pursuant to the Ordinance of the Minister of Finance of 29 March 2018 concerning current and periodic information provided by the securities' issuers and requirements for recognition as equivalent information required by the law of a non-member state (Journal of Laws 2018, item 757):
1. Accounting principles used to draw up the report.
The Q3 2019 report was drawn up in compliance with the provisions of the Accounting Act of 29 September 1994, as amended and pursuant to the accounting principles effective at the Company.
Data specified in the report was drawn up using the principles of assets and liabilities pricing and measurement of net financial result as of balancing date.
The accounting principles vis-à-vis those described in the annual report SA-R 2018, made public on 25 April 2019, have not been modified.
2. Information on amounts and types of items affecting assets, liabilities, equity, net result or cash flows that are unusual because of their nature, value or frequency
None
Polish Financial Supervision Authority
DEBICA | SA-Q 3/2019 |
3. Seasonality, cyclic nature of the activities
The Company's business activities are not strongly seasonal. However, external factors, such as macroeconomic situation, weather conditions or consumer behaviours, may influence sales revenue in particular parts of the year (summer tires sales and winter tires sales).
4. Inventory revaluation
T.C. For 3 quarters of 2019 T.C. Dębica S.A. made allowances to revaluate its inventory for the total amount of PLN 33 thousand that influenced other operating costs. Revaluation allowances applied to:
- product inventories PLN 0 thousand;
- raw materials and materials inventory - PLN 26 thousand Total PLN 26 thousand.
5.Information about write-offs for impairment of financial assets, tangible fixed assets, intangible assets or other assets
None
6. Information about setting up, increase, usage and dissolution of provisions as for 30 September 2019
Short-term provisions | '000 PLN |
Provisions for employee benefits | |
Opening balance | 26 339 |
- increases: provision setting up | 24 330 |
- decreases: dissolution/utilisation of provision | 25 739 |
Closing balance | 24 930 |
Restructuring provision | |
Opening balance | 793 |
- increases: provision setting up | 6 819 |
- decreases: dissolution/utilisation of provision | 2 149 |
Closing balance | 5 463 |
Long-term provisions | |
Provisions for retirement gratuities | |
Opening balance | 9 707 |
increases: provision setting up | 139 |
decreases: dissolution/utilisation of provision | 595 |
Closing balance | 9 251 |
Provision for extended tyre warranties | |
Opening balance | 139 |
Polish Financial Supervision Authority
DEBICA | SA-Q 3/2019 |
increases: provision setting up | 50 |
decreases: dissolution/utilisation of provision | 0 |
Closing balance | 189 |
7. Provisions and deferred income tax assets
As of 30 September 2019 the balance of deferred income tax provision totalled PLN 36.1 million and was up by PLN 10.5 million compared to that as of 31 December 2018.
The deferred tax balance difference in the balance sheet is a result of revaluation of transitional positive differences related to the difference between fixed assets value in balance sheet and fixed assets value for tax purposes that will be realized in the period of using public aid.
As of 30 September 2019 the balance of deferred income tax assets totalled PLN 17.6 million and was up by PLN 8.3 million compared to that as of 31 December 2018. The differences are due to the application of basic tax rate in 2019 to the transitional differences.
8.Material transactions of acquisition and disposal of tangible fixed assets
None
9. Material liabilities related to the purchase of tangible fixed assets
None
10.Material litigation-related settlements
None
- Adjustment of errors made in previous periods None
- Information about changes in economic position and business environment, having material impact on the fair value of financial assets and liabilities
None
13.Information about being in default with credit or loan repayment or about a breach of material provisions of loan agreement
None
14. Information about entering by the Issuer or its subsidiary into a single or multiple transactions with related entities, if they alone or jointly play significant role and were not made following arm's length principle.
In the period of 3 quarters of 2019 the Company did not enter into any transactions with related entities without following the arm's length principle
- Financial instruments priced at fair value - change of its pricing method The Company does not price financial instruments at fair value.
- Change in financial asset classification due to the modification of assets purpose or utilization
None
17.Issue, buy out and repayment of debt and equity securities
Polish Financial Supervision Authority
DEBICA | SA-Q 3/2019 |
In the current accounting period and in the past the Company did not issue neither debt or equity securities.
18. Dividend
The General Meeting of Shareholders that was held on 25 June 2019 decided that 75% of 2018 profit i.e. the amount of PLN 67.4 million, should be allocated to dividend payment to shareholders at PLN 4,88 per share. The entitlement to 2018 dividend is enjoyed by persons who have Company shares on their account kept by a brokerage house on 23 September 2019 (the so called dividend entitlement date). Dividend will be paid on 18 December 2019.
- Material events that followed the financial statement preparation date. None
- Changes in the balance of contingent liabilities and contingent assets that have occurred since closing of the last accounting year
The contingent liability under the Bill Discount Plan at the balance sheet date of 30 September 2019 was PLN 39.8 million, down by PLN 42.7 compared to year-end.
21.Other information that might have material impact on the assessment of assets and financial position and financial result of the Issuer.
None
File | Function description |
MISCELLANEOUS INFORMATION
1. Selected financial data converted into euros
Balance sheet assets and liabilities were translated into EUR at the average exchange rate of the National Bank of Poland as of 30 September 2019 (1 euro = PLN 4.3736) and as of 30 September 2018 (1 euro = PLN 4.2714) (1 euro = PLN 4.2714).
Items of the profit and loss account and cash flow statement expressed in PLN were converted into EUR at the exchange rate being the arithmetic mean of
on the last day of each reporting month. The adopted average exchange rate for the three quarters of 2019 amounts to PLN 4.3086 for EUR 1 and PLN 4.2535 for the three quarters of 2018 for EUR 1.
The net profit in the balance sheet for the three quarters of 2019, calculated at the exchange rate as of the end of September 2019, amounts to EUR 21,139 thousand and calculated at the average rate: EUR 21 458 thousand. The exchange differences arising from the translation of the profit or loss for the three quarters of 2019 amounted to EUR 319 thousand.
2. Material achievements or failures
In three quarters of 2019 Tire Company Dębica S.A. generated sales revenues totalling PLN 1 578.6 million, up by 7.5 per cent compared to three quarters of 2018.
Q3 2019 saw an increase of sales revenues by 2.4 per cent on a y/y basis.
Net profit for three quarters of 2019 totalled to PLN 92.5 million, i.e. up by 1.0% per cent compared to the corresponding period of the previous year.
3. Factors and events (including non-standard ones) having material impact on condensed financial statement
For three quarters the sales to the Goodyear Group member companies totalled PLN 1 419.2 million, i.e. up by PLN 112.9 million compared to three quarters of 2018. In three quarters 2019 such sales accounted for 89.9 per
Polish Financial Supervision Authority
DEBICA | SA-Q 3/2019 |
cent of total sales compared to 88.9 per cent in the same period of 2018.
Sales to non-related entities totalled PLN 159.4 million and was down by PLN 1.8 per cent on a y/y basis.
In three quarters 2019 gross profit on sales to related entities totalled PLN 103.0 million and was up by PLN 22.7 million compared to the same period of the previous year. Gross profit margin in relation to the revenues of these entities was up from 6.2 per cent to 7.3 per cent on a y/y basis.
In three quarters 2019 gross profit on sales to non-related entities totalled PLN 19.4 million and was down by PLN 14.5 million compared to the same period of the previous year. Gross profit margin in relation to the revenues of these entities was down from 20.8 per cent to 12.2 per cent on a y/y basis.
In three quarters 2019 gross profit on total sales totalled PLN 122.4 million, whereas gross profit margin in relation to total revenues was 7.8 per cent. For comparison sake in three quarters 2018 gross profit on total sales totalled PLN 114.2 million, whereas gross profit margin in relation to total revenues was also 7.8 per cent.
In three quarters 2019 the unit production costs were up by 9.0 per cent compared to the same period in the previous year. Both material costs and processing costs were up.
The costs of sales and general management totalled PLN 16.5 million, down by PLN 1.7 million compared to three quarters of 2018. These costs in sales in value terms accounted for 1.0 per cent against 1.2 per cent for three quarters of the previous year. A decline of SG&A costs was mainly driven by a reduction of the costs of regional support.
In three quarters of 2019 the other operating income, net was a cost totalling PLN 9.2 million compared to PLN 0.6 million in three quarters of 2018.
The cost of PLN 9.2 million comprised:
a) restructuring costs of PLN 6.8 million, b) costs of bad debts of PLN 1.9 million,
c) costs of liquidation of fixed assets of PLN 0.2 million, d) other operating costs of PLN 0.3 million.
Operating profit (EBIT) totalled PLN 96.6 million, up by PLN 1.2 million on a y/y basis, whereas EBIT margin in relation to revenues was 6.1 per cent compared to 6.5 per cent in three quarters of 2018.
In three quarters 2019 the financial activities generated profit totalling PLN 1.1 million against profit of PLN 2.4 million in the same period of 2018.
Such financial activity net income was driven by:
- foreign exchange gains and losses that generated a loss totalling PLN 1.8 million, against cost of PLN 0.4 million in three quarters of 2018;
- interest income from a loan extended to related entities that generated income totalling PLN 3.0 million against PLN 3.3 million for three quarters of 2018;
- interest income on idle cash totalling PLN 1.6 million against PLN 0.8 million for three quarters of 2018;
- dividend paid in the amount of PLN 0.1 million against PLN 0.5 million for three quarters of 2018;
- costs of discounting bills of exchange and other interest totalling PLN 1.8 million, similarly to the same period in the previous year.
For three quarters of 2019 the gross profit before taxation totalled PLN 97.7 million and hovered around the same level as in the previous year.
Pursuant to the held operational permit No. 134/ARP/2008 of 27 February 2008 for running business activities within the Euro-Park Mielec Special Economic Zone Tire Company Dębica S.A. is entitled to enjoy income tax relief up to 40.23 per cent of the discounted amount of capital expenditures spent on investment projects within the "Euro-Park Mielec" Special Economic Zone. The Company met the requirements attached to the operational permit in December 2012 and starting from 2013 onwards is entitled to enjoy income tax relief for legal persons. By virtue of the Decision No. 27/IW/16 of 14
Polish Financial Supervision Authority
DEBICA | SA-Q 3/2019 |
January 2016, taken by the Minister of Development, the held Operational Permit for running activities in the Euro-Park Mielec Special Economic zone was modified with regard to its expiry date. Under the Decision that expiry date was taken out of the Operational Permit.
The outstanding amount of public aid (to be used) was at the balancing date of 30 September 2019 and totalled PLN 3.3 million in nominal terms i.e. PLN 2.0 million in discounted terms (these figures include the calculated CIT value for 9 months 2019, which however, may be subject to change in the annual tax return).
The Management Board does not perceive a risk of failure to utilize the tax relief by the end of expiry date of the Operational Permit by 31 December 2026. The current portion of income tax totalled PLN 3.0 million and is concerned with income tax paid on profit generated by the operations covered by the Operational Permit issued for the Special Economic Zone.
The deferred portion of the income tax totalled PLN 2.2 million, and consequently total income tax was PLN 5.2 million. Net profit for three quarters of 2019 totalled PLN 92.5 million, up by 1.0 per cent compared to the same period of the previous year.
At the end of September 2019 the fixed assets in value terms totalled PLN 774.7 million and were down by PLN 24.5 million compared to the opening balance in 2019.
The tangible fixed assets in value terms totalled PLN 32.8 million, of which:
- the completed investment programs in 3 quarters 2019 boosted the value of fixed assets by PLN 36.6 million,
- the depreciation of existing fixed assets reduced its value by PLN 69.4 million,
- change of fixed assets balance due to its sales and liquidation led to the decline of its value by PLN 2.8 million,
- changes due to the financial lease led to an increase by PLN 2.8 million.
Deferred income tax assets totalled PLN 17.6 million, up by PLN 8.3 million compared to the onset of 2019.
Current assets were PLN 1 017.3 million and after three quarters they were up by PLN 125.0 million.
Short-term receivables totalled PLN 452.7 million and were up by PLN 98.2 million against the opening balance of 2019 From related entities they were up by PLN 75.1 million, and from non-related entities they were up by PLN 23.1 million.
Inventory went up by PLN 14.5 million and reached the level of PLN 108.3 million. The change was driven by an increase of finished goods inventory by PLN 0.4 million, up to the level of 1.7 million. The raw materials and materials inventory was up by PLN 4.6 million and reached the level of PLN 76.1 million, meanwhile work in progress inventory was PLN 30.3 million, up by PLN 9.3 million. Commodity inventory was up by PLN 0.2 million, compared to the opening balance of the year.
Short-term financial assets totalled PLN 451.7 million and after three quarters of 2019 they were up by PLN 9.3 million. Cash and cash equivalents were up by PLN 134.3 million. At the end of September 2019 the loans extended to related entities, in value terms, totalled PLN 225.0 million (down by PLN 125.0 million against the opening balance of the year
2019).
Short-term accruals totalled PLN 4.6 million and were up by PLN 3.1 million, mainly due to a write-off for the Corporate Social Benefit Fund.
As of 30 September 2019 the Company assets totalled PLN 1 791.9 million and during three quarters they were up by PLN 100.4 million.
As of 30 September 2019 liabilities and provisions totalled PLN 654.6 million and during three quarter they were up by PLN 75.4 million. Provisions for liabilities rose by PLN 13.3 million, including deferred income tax provisions, which was up by PLN 10.5 million, whereas employee benefit provision was down by PLN 1.9 million, whereas other provisions were up by PLN 4.7 million.
As of 30 September 2019 short-term liabilities totalled PLN 574.8 million and were up by PLN 62.1 million against the
Polish Financial Supervision Authority
DEBICA | SA-Q 3/2019 |
end of 2018. Short-term liabilities vis-à-vis related entities were up by PLN 76.9 million, whereas short-term liabilities vis-a-visnon-related entities were down by PLN 16.0 million. Special funds were up by PLN 1.2 million.
Long-term lease liabilities totalled PLN 4.0 million and remained at the same level as the year opening balance.
At the end of September 2019 the Company equity totalled PLN 1 137.4 million and was up by PLN 25.1 million in three quarters of 2019, due to the net profit for the period ("Other reserve capital" due to distribution of profit for the previous year was up by PLN 22.4 million, whereas net profit was up by PLN 2.7 million).
For three quarters 2019 the operational cash flows were positive and totalled PLN 45.6 million. Net profit and depreciation generated positive cash flows totalling PLN 161.9 million, whereas working capital increase generated PLN 116.5 million of negative cash flows, mainly due to an increase of receivables at the end of third quarter. Change of provisions and cost accruals generated PLN 1.9 million of positive cash flows, whereas other lines generated PLN 1.7 million of negative cash flows.
For three quarters 2019 the investment cash flows were positive and totalled PLN 92.0 million. The purchases of tangible fixed assets totalled PLN 38.2 million (including capital expenditures PLN 36.6 million, capex liabilities were down by PLN 1.6 million).
Loan repayment by a related entity generated PLN 185.0 million of positive cash flows. Loan extension to a related entity generated PLN 60 million of negative cash flows. The loan extended to a related entity generated interest income of PLN 3.0 million, whereas the sales of tangible fixed assets generated PLN 2.1 million, and the received dividend generated PLN 0.1 million of positive cash flows.
The financial activity cash flows were negative and amounted to PLN 3.3 million. Interest expense was PLN 0.7 million, whereas the lease instalment expense was PLN 2.6 million.
For three quarters 2019 the net cash flows were negative and totalled PLN 134.3 million. Cash balance for three quarters 2019 rose from PLN 92.4 million at the end of December 2018 to PLN 226.7 million at the end of September 2019.
4.Changes in organisation of Issuer's Capital Group
The Company does not form a capital group is neither a controlling entity nor draws up consolidated financial statements.
5. Management Board position on capability to meet the annual forecasts published earlier in the light of actual performance presented in the quarterly report against the forecast figures.
The Company did not publish forecasts of its performance in 2019.
6. Shareholders holding at least 5% of the total number of votes at the General Meeting of Shareholders.
As of the date of filing Q3/2019 Quarterly Report according to the Company information the shareholders holding at least
5% of the total number of votes at the General Meeting of Shareholders included:
Goodyear Holdings S.àr.l. with its registered office in Luxembourg, holding 12 042 976 shares accounting for 87.251% of Company's shareholders' equity, with attached voting rights to 12 042 976 votes at the Company's General Meeting of Shareholders, accounting for approximately 87.251% of total number of votes at the Company's General Meeting of Shareholders*.
*Source: Current Report No. 17/2019 Notification from Goodyear Group member companies about a change in the
Company's shareholding structure in connection with a transaction on a regulated market, published on: 19 June 2019.
7. Company shares or entitlements (options for shares) held by the members of Company management or supervisory bodies
As of the date of filing bi-annual report none of the persons managing or supervising the Company had any shares in the Company or rights attached to them.
8. Litigation proceedings concerned with obligations or liabilities run by a court of law, a body competent to run arbitration proceedings or a public administration body
Polish Financial Supervision Authority
DEBICA | SA-Q 3/2019 |
None
9. Extended sureties for a credit, loan or extended guarantees - in total to a single entity or its subsidiary
The Company did not extend any sureties for a credit, loan, nor extended any guarantees.
10. Other information key to the assessment of HR, property, financial positions, financial profit/loss and their changes and information key to the assessment of capability to fulfil obligations
None
9. Factors that in the opinion of the Company will drive its performance for at least another quarter.
According to the Management Board, the following factors will affect the Company performance in the perspective of at least another quarter:
- macroeconomic position: the condition of the Polish and European economies and its impact on the financial standing of customers and consumers;
- development of automotive sector: vehicle production and sales growth rates in Poland and in Europe;
- the level of orders from Company customers: related andnon-related entities;
- volatility of foreign exchange rates, mainly euro and US dollar;
- operating costs: Impact of operating costs of Dębica manufacturing plant;
- costs of raw materials: change of raw material prices, which translate into Company's operating costs.
File | Description |
SIGNATURS OF PERSONS REPRESENTING THE COMPANY | ||||||
Date | Name and surname | Position/Function | Signature | |||
14 November | Leszek Szafran | President of Management | Board | Signature owner: Leszek Szafran | ||
Signature date and time: 14 Nov. | ||||||
2019 | /Chief Commercial Officer | |||||
2019, 14:07:01 CET | ||||||
Signature status: Valid | ||||||
Type of signature: trusted | ||||||
14 November | Ireneusz Maksymiuk | A Management Board member | Signature | owner: | Ireneusz | |
Maksymiuk | ||||||
2019 | /Chief Financial Officer | |||||
Signature date and time: 14 Nov. | ||||||
2019, 10:13:51 CET | ||||||
Signature status: Valid | ||||||
Type of signature: trusted | ||||||
14 November | Michał Mędrek | A Management Board member / | Signature owner: Michał Mędrek | |||
Signature date and time: 14 Nov. | ||||||
Chief Logistics Officer | ||||||
2019 | 2019, 12:10:03 CET | |||||
Signature status: Valid | ||||||
Type of signature: trusted | ||||||
14 November | Mirosław Maziarka | A Management Board member | Signature | owner: | Mirosław | |
Maziarka | ||||||
/Chief Production Officer | ||||||
2019 | Signature | date and time: 14 Nov. | ||||
2019, 13:33:10 CET | ||||||
Signature status: Valid | ||||||
Type of signature: trusted | ||||||
14 November | Anna Bolanowska | Financial Controller | Signature owner: Anna Bolanowska | |||
Signature date and time: 14 Nov. | ||||||
2019 | 2019, 08:53:30 CET | |||||
Signature status: Valid | ||||||
Type of signature: trusted | ||||||
Polish Financial Supervision Authority
Attachments
- Original document
- Permalink
Disclaimer
Firma Oponiarska Debica SA published this content on 16 January 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 January 2020 20:43:02 UTC