Celje, 31 July (STA) - The chemical company Cinkarna Celje saw its sales revenue drop by 5.6% year-on-year to EUR 92.7 million in the first half of the year. Net profit meanwhile plummeted by 57% to EUR 9.7 million, the company said on the web site of the Ljubljana Stock Exchange on Wednesday.
The management said in the half-year report that the poorer results were a consequence of a changed balance in the supply and demand for the titanium dioxide, its main product.
Cinkarna Celje sold 12% more titanium dioxide in the first half of the year compared to the same period last year, with inventories of titanium dioxide dropping by 24% to stand at around two months' worth of regular production.
The company recorded the biggest drop in sales on the markets of the former Yugoslav republics, where the demand for titanium dioxide decreased significantly. Sales also dropped on the domestic market.
At the end of June, Cinkarna Celje had no debts to banks, with deposits and assets on accounts amounting to EUR 26.5 million, which is 12% less than in the same period last year.
In the first half of 2019, the company spent EUR 4.6 million on investments, purchase of fixed assets and replacement equipment and environmental measures, which was 41% of the planned amount.
The bulk of the investments was intended for the production of titanium dioxide, improving the quality of products, securing the planned quantity of production and reducing the environmental impact, the company said.