Falling demand hits Chimcomplex's first-quarter results

Chemicals producer and supplier Chimcomplex Borzeşti reported a net profit of 5.5 million lei for the first quarter of this year, down 26% year-on-year, in an economic environment marked by falling demand in the international chemical industry, high volatility in energy prices and inflationary pressures, according to the company's report published yesterday on the Bucharest Stock Exchange (BVB) website.

Turnover was affected by the decline in sales, amounting to 325.8 million lei in the first three months of the year, 24% below that of the same period in 2024, but the company managed to maintain a positive operating margin of 7% as a result of measures implemented under the Precautionary Measures and Accelerated Development Plan, currently in its second phase of implementation, the report also states.

Operating income amounted to 403.3 million lei, down 2.8% compared to the first three months of last year, while operating expenses were almost 381 million lei, 3.3% below those in the January-March 2024 period. Operating profit amounted to 22.3 million lei, up 6.6%, while from financial activities Chimcomplex recorded a negative result of 9.4 million lei, higher than the loss of 7.4 million lei in the first three months of last year. The company explains the financial result by interest on loans and other financial expenses in the amount of 8.4 million lei, costs that increased with the contracting of new loans, as well as by a loss from exchange rate differences in the amount of 0.95 million lei.

In the first three months of the year, Chimcomplex continued to invest in the modernization of its industrial platforms in Oneşti and Râmnicu Vâlcea, the development of new production capacities and the expansion of energy efficiency through cogeneration projects and photovoltaic panels. The total value of investments increased by 7.5 million lei compared to the same period in 2024, according to the BVB report.

Ştefan Vuza owns 85% of Chimcomplex through CRC Alchemy Holding, headquartered in Amsterdam, while the Romanian State, through the State Assets Administration Authority, has 9% of the chemical manufacturer.