Plastics packaging group Ergis (Warsaw / Poland; www.ergis.eu) posted lower earnings in 2017 due to higher labour costs and its failure to pass on the higher prices of raw materials. But revenue of PLN 750.5m (EUR 176m) was a record and rose 7.77%, thanks to rising demand for stretch films, whose contribution to EBITDA has been increasing significantly since the market launch of “nanoErgis” plastic film. Operating profit dipped 6.6% to PLN 32.9m and net profit decreased 14% to PLN 20.5m.

Ergis said raw materials costs were not passed on to the prices of finished products, particularly soft PVC film, rigid film and laminates for food packaging as well as flexible packaging. Wages also rose by PLN 7.2m year on year. In addition, rigid film and laminates for food packaging had a negative impact on full-year results after generating a fourth-quarter EBITDA that was PLN 2.5m lower year on year.

President Tadeusz Nowicki said the current priority is launching a new PET film and laminate production line in the first half of 2018 at its factory in Berlin / Germany (see Plasteurope.com of 21.08.2017). There are also plans to invest in another line for multilayer stretch films at its main plant in Olawa / Poland, as well as to diversify sources of supply.