Polish plastics companies improve earnings, but raw material volatility clouds recovery
Poland’s listed plastics processors and distributors mostly improved their financial results in the first half, according to Parkiet. Grupa Kęty and Decora are expanding capacity despite volatile polymer costs, weak renovation demand and pressure from Asian producers.
Earnings improve as demand remains fragile
Poland’s listed plastics processors and distributors mostly reported improved financial results in the first half, but companies remain cautious about the durability of the recovery. Parkiet reports that geopolitical turbulence, oil-price movements and uncertain customer demand continue to affect purchasing decisions and margins across the sector.
Grupa Kęty’s flexible packaging business increased second-quarter revenue by 16% to 335 million złoty, while EBITDA rose by 82% to 124 million złoty. The company attributed stronger sales mainly to higher prices, while profitability benefited from solid margins on packaging and biaxially oriented polypropylene, or BOPP, film. Despite these gains, Grupa Kęty said negative factors outweighed positive ones in the first half. It expects a more stable raw-material environment in the second half and aims to maintain stable revenue and margins.
Polyethylene prices and construction shape the outlook
Packaging producers remain exposed to rapid changes in petroleum-derived feedstock prices. Michał Malina, investor relations director at Grupa Kęty, told Parkiet that oil-market disruption connected with the conflict in the Persian Gulf was causing sharp movements in polyethylene and polypropylene granulate prices. These materials are used to manufacture films and flexible packaging. Dektra chief executive Beata Stefańska also cited major volatility in HDPE and LDPE prices: plastics became more expensive rapidly in the spring before declining in July and August, but remained above their level a year earlier.
Dektra’s second-quarter revenue grew by only 0.6% to 5 million złoty, while EBITDA almost doubled to 281,000 złoty. Its outlook depends heavily on construction, renovation, building modernisation and thermal-upgrade activity, as well as seasonal agricultural and horticultural demand. The company identified weak construction conditions, uncertain demand, energy and transport costs, raw-material volatility and cautious customer purchasing as continuing constraints. It plans to manage inventories and margins conservatively while maintaining product availability and operational stability.
Companies invest despite a cautious market
Decora, which produces vinyl flooring and flooring accessories, increased first-half revenue by 10% to 359 million złoty and EBITDA by 9% to 67.3 million złoty. The company said the expected clear rebound in the renovation market had not yet appeared in parts of Europe. It is nevertheless expanding international sales, distribution and its wall-solutions portfolio. Decora also continues to face cost pressure from raw materials and other inputs, as well as competition from Asian producers.
Both Decora and Grupa Kęty are proceeding with major capacity projects. Grupa Kęty is building a third BOPP film line scheduled to start in the second half of 2028. The line will add about 50,000 tonnes of annual capacity, increasing current capacity by more than 60%. Decora has started the largest investment project in its history, with a maximum estimated net value of 170 million złoty. The project includes a production and warehouse building of about 30,000 square metres in Środa Wielkopolska and new machinery. It is designed to increase Decora’s annual stone plastic composite, or SPC, production capacity by 5 million square metres. These commitments indicate that leading companies are preparing for future demand even as the near-term market remains uneven.
