•     Net sales amounted to SEK 395.9 million (274.6), an increase of 44%. 
•     Net sales for comparable segments decreased by SEK 10.4 million, a

•     Operating profit amounted to SEK 25.8 million (32.0), a decrease by 19%. 
•     The operating margin decreased to 6.5% (11.6).
•     Non-recuring costs are included in the operating profit with SEK -9.0

million. In the comparing quarter electricity grant of SEK 5.5 million was
received.

•     The profit for the period amounted to SEK 16.5 million (23.7), a decrease

•     Earnings per share, before dilution, amounted to SEK 0.79 (1.18) and

•     Cash flow from operating activities amounted to SEK 38.0 million (22.4).

•     Net sales amounted to SEK 643.7 million (525.6), an increase of 22%.
•     Net sales for comparable segments decreased by SEK 13.6 million, a

•     Operating profit amounted to SEK 61.6 million (47.6), an increase of 29%.
•     The operating margin increased to 9.6% (9.1).
•     The profit for the period amounted to SEK 43.8 million (37.0), an

•     Earnings per share, before dilution, amounted to SEK 2.09 (1.85) and

•     The net debt amounted to SEK 65.2 million (63.1) at the end of the

•     Cash flow from operating activities amounted to SEK 65.3 million (43.3).

Market

The increasing demand observed during the first quarter slowed down in the
second quarter. Our perception is that the market volumes are level with the
comparison period. Demand in the construction industry remained generally
weak, and the expected seasonal effect did not occur. Demand from the
automotive industry is weakened, while we have good demand in several other
sectors, particularly in industry and industrial projects where special
products have performed strongly. This trend has been evident in the segment
Sweden, Czech Republic and Germany. Our perception is that our market share
remains unchanged.

Raw material prices, which affect both net sales and gross profit, continued
to increase during the second quarter, but are still significantly lower than
in the comparison quarter. In the situation of rising raw material prices,
price competition with customers has increased. We see that several customers
in the distribution channel are choosing to increase their inventory levels in
anticipation of further price increases, this trend is especially noticeable
in the PMMA product area.

Through the acquisition of Nudec, we expand our reach and position in Europe
and we now also have a strong foothold in Central and Southern Europe. Nudec's
competence in PMMA complements and strengthens our product portfolio,
positioning us as a significant player in the market.

Increased Net Sales and Write-Downs

Our net sales increased by 44% to SEK 395.9 million, due to the acquisition of
Nudec. Net sales were negatively impacted by the lower raw material prices
compared to the previous year. We see continued increased competition in the
ABS product area, which is an effect of the weaker demand from the automotive
industry. At the same time, we are strengthening our position in TPC, PMMA and
PETG with Nudec.

In the second quarter of 2024, the operating profit amounted to SEK 25.8
million, which is lower than the previous year. The quarter has been charged
with transaction costs for the acquisition and write-downs in segment Czech
Republic, while in the second quarter of the previous year, we received a
government grant for electricity costs in segment Sweden. Excluding these non
-recurring items, the result is considerably stronger than the comparison
period. Segment Sweden and Czech Republic continue to show stability. The
margins in segment Germany have strengthened significantly. The gross margin
is, as expected, slightly weaker than last year due to the lower margins in
Nudec, which is part of segment Spain. We have already begun planning the
improvement measures which were identified before the acquisition. Our
perception is that this will lead to profitability well in line with our
financial targets in the medium long term.

Cash flow remains strong and is highly prioritized. Despite a minor seasonal
build-up of inventory ahead of the holiday season, we have managed the working
capital well. It is through the strong cash flows of recent years that we have
been able to finance the acquisition of Nudec solely with our own funds and
still maintain a relatively low net debt.

Outlook

We find the market demand somewhat more stable than last year. Raw material
prices are on an upward trend, although the fluctuation so far has been more
less volatile than in recent years. With our now wider customer offering, both
in terms of products and geography, we see ourselves as well-positioned in
Europe. Major investments, including warehouse expansion and machinery
investments in segment Sweden, as well as machinery investments in segment
Czech Republic, are proceeding according to plan. We are also reviewing
machinery and buildings at Nudec to optimize, streamline and strengthen
margins to match those we now see in our other production units. With the
combined expertise and commitment of our employees, we see good prospects for
moving forward on a stable foundation.

Christian Krichau

President and CEO

For further information, please contact:

Christian Krichau, President and CEO, +46 141-20 38 58

Forward-looking information

Some statements in this report are forward-looking and the actual outcome may
be significantly different. In addition to the factors specifically
highlighted, other factors may have a material impact on the actual outcome.
Such factors include, but are not limited to, the general economic situation,
changes in exchange rates and interest rates, political developments, the
impact of competing products and their prices, disruptions in the supply of
raw materials.

This information is such information that Arla Plast AB is obliged to publish
in accordance with the EU Market Abuse Regulation and the Securities Markets
Act. The information was published by the abovementioned contact person on
August 16, 2024 at 8:00 am CET.

About Arla Plast

Arla Plast is a producer and supplier of extruded sheets made of technical
plastics. The plastic sheets are made of polycarbonate (PC), acrylonitrile
butadiene styrene (ABS), glycol-modified polyethylene terephthalate (PETG) and
polymethyl methacrylate (PMMA) and have a large number of areas of
application, such as safety products, machine guards, ice hockey rinks,
greenhouses, pool covers, sound walls, suitcases, automotive components and
various construction-related areas of application. The company is
headquartered in Borensberg, Sweden, and has a total of four production
facilities in Sweden, the Czech Republic and Spain and a distribution unit in
Germany. Arla Plast has a turnover of more than SEK 1,100 million, has
approximately 390 employees and delivers to more than 700 customers in over 45
countries.

More information about Arla Plast is available at www.arlaplastgroup.com.