Debica hit by lower selling prices, fall-out from fire

Debica, Poland – Polish tire maker Debica SA has posted estimated revenues from the ‘sale of products, goods and materials’ of PLN2,557 million (€617 million) and net profit of PLN78 million for 2024.

The preliminary estimates point to a substantial reverse from 2023, when Debica achieved ‘sales of net sales of products, merchandise and materials’ of PLN2,992 million and a net profit of PLN284 million.

Debica’s 2024 performance was affected in particular “by limited production capacity and lower selling-prices in transactions with related parties over the course of last year,” said its 20 Feb filing to the Polish financial supervision authority.

“Realised prices reflect the impact of the decrease in the costs of raw material in November and December 2023, which were included in the calculation of prices applied in the first quarter of 2024,” noted Debica.

Earnings also reflected an “advance payment received towards compensation for fire [ERJ report] in the amount of PLN151 million in other operating income, as well as the costs still incurred in connection with the fire that took place in August 2023.”

The figures, it added, included unused production capacity and the costs of rebuilding production capacity, which for 2024 totalled to PLN108 million, and the restoration of full production capacity in the fourth quarter of 2024.

Parent group Goodyear Tire & Rubber Co. currently indirectly holds approx. 87.251% of Debica's share capital through Goodyear Holdings Sarl, with its registered office in Luxembourg.

The Debica-based company’s finalised financial results for 2024 are scheduled to be published on 25 April.