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June 3, 2018 12:00 am | FILED UNDER: business

Colorlak Reports Revenue Up, Profit Down: Rising Cost Of Raw Materials To Blame

By ČTK Colorlak

Stare Mesto, South Moravia, June 3 (CTK) – Colorlak, a major paint producer on the Czech market, saw its sales revenues grow by nearly Kc12m to Kc709m last year, but its profit decreased by some Kc13m yr/yr to Kc7.8m, the company said in its annual report.

 

Raw material price fluctuations up to tens of percent affected the company’s performance, said company board chairman and statutory director Svatopluk Chalupa.

 

Recovery in the car industry continued but construction’s performance was weaker last year, which was reflected in Colorlak’s sales figures, Chalupa said. The 2017 results are the worst in a recent period of time, he said. That is why the company’s performance is being analysed and measures are taken to change the situation and help the company return to previous levels in terms of business results, he added.

 

Investments in new technology and equipment reached Kc3.8m, against some Kc19.5m in 2016. R&D investments amounted to Kc11.2m.

 

Staff numbers reached 293 on average, nine fewer annually.

 

This year’s sales and profit figures are projected at similar levels as in 2016.

 

Share capital exceeded Kc178.5m last year.

 

Climate conditions and restrictions on supplies to the automotive industry caused a drop in sales in Q1, mainly in March, Chalupa said.

 

April and May saw an improvement in sales on the part of Colorlak subsidiaries, which offset the Q1 shortfall.

 

Colorlak was set up in 1993, following up a tradition of over 90 years in paints and varnishes production in the town of Stare Mesto.

 

Apart from the parent company Colorlak, the group consists of Czech units Panter Color, Milano Color and Ekolak, and Slovak unit Colorlak SK. In Poland, Colorlak holds a majority in Colorlak Polska and Panter Color Polska companies.

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