Debica enjoys surprising Q3 results thanks to sales of winter tires

TC Debica, a listed tire producer has posted very good third quarter results which exceeded market expectations. The company made zl. 24.1 million net profit for the quarter, which is 64% higher in comparison to last year, while revenues increased by only 29% to zl. 274.4 million. The net profit was much higher than expected by analysts in CA IB Securities, who forecast a figure closer to zl. 16 million. The increase in revenues results both from the improved standing of the zloty against the euro and increased production. It is worth noticing that production costs stood at 27%, which was 2% lower than the sales increase. Debica, however, observed six-times higher financial costs, equaling zl. 8.2 million, which dented the profit increase. The inventory decreased by zl. 15 million due to distribution of winter tires to dealers. Thanks to the good results, Debica shares rose during yesterday's session of the Warsaw Stock Exchange. (Rzeczpospolita, p. B3) P.W.