TPI Polene reports 10% sales drop in 9M23

TPI Polene’s sales performance in the 9M23 was 10 per cent lower YoY to THB33,528m (US$945.5m), while EBITDA generated was down 27 per cent YoY to THB8127m. The main factor for the lower performance this year was the 44 per cent YoY decline in the sales of the Specialty Polymer/Chemical division to THB6488m because of lower product prices and volume disruption early this year due to major maintenance shutdown. The achieved EBITDA was also lower primarily due to the lower spread in specialty polymer as well as the higher per unit fixed cost associated with the maintenance shutdown (secondary reason).For the 9M23 the reported net profit attributable to the parent was THB3054m, down 51 per cent YoY.

While the topline conditions were tough, the company has been able to deliver another seven per cent QoQ increase in EBITDA, sustaining the sequential improvement momentum since its trough in 4Q22. The overall EBITDA margin in 3Q23 was a solid 28 per cent versus the 21 per cent seen in 4Q22. Pulling up the group in this quarter is the ConsMat division whose EBITDA margin reached 17 per cent, the highest in the past five quarters. This was achieved by a combination of lower energy costs, efficiency gains and the launch of the high-margin Green Cement & Building Products in June 2023. 

Group sales in the 3Q23 dropped five per cent QoQ to THB10,838m. Both ConsMat and Energy/Utilities divisions had slower sales, down seven and six per cent, respectively. The softer sales in ConsMat were seasonal.

The company maintains its capex budget of THB7.7bn for ongoing plant improvements as well as new capacities in renewable power: solar, wind and MSW.