Weener March EBITDA Jumps 22% as Price Increases Maintain Positive Resin Spread; Company Sells Russian Business Accounting for 17.5% of EBITDA for Zero Value

Weener Plastics BV reported strong March numbers, with EBITDA up 21.8% year over year as a result of price increases maintaining a positive resin spread. However, the Dutch plastic packaging company exited Russia last month, selling its plants for zero value. The Russian business accounted for 12% of the group’s sales and 17.5% of its adjusted EBITDA, sources told Reorg.

Group sales came in at €42.5 million in March, which was well ahead of €37.4 million budgeted and €35.2 million Weener generated the same month last year, largely driven by the continuous rise in underlying resin prices.

Adjusted EBITDA reached €8.4 million, beating the €8.1 million budgeted and significantly up on the €6.9 million the group achieved in March last year, driven by pricing having caught up on surging resin costs as well as cost savings.

Weener generated €2.7 million of free cash flow during March despite a €5.2 million increase in working capital reflecting higher resin prices. As a result, the group ended the month with €39.6 million of cash.

In May, the group sold its two Russian plants to a Dubai-based company, which will operate them on a standalone basis. Weener received zero value for the plants, although the deal includes earnout payments and an anti-embarrassment clause, sources noted.

Weener's capital structure as of Dec. 31, 2021, is below:
 
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– Robert Schach