{"id":155811,"date":"2019-07-29T08:39:18","date_gmt":"2019-07-29T08:39:18","guid":{"rendered":"https:\/\/bdm-stg.mda.pl\/informacje-prasowe\/financial-results-of-the-budimex-group-after-the-first-half-of-2019\/"},"modified":"2024-06-07T12:07:24","modified_gmt":"2024-06-07T12:07:24","slug":"financial-results-of-the-budimex-group-after-the-first-half-of-2019","status":"publish","type":"press","link":"https:\/\/bdm-stg.mda.pl\/en\/press\/financial-results-of-the-budimex-group-after-the-first-half-of-2019\/","title":{"rendered":"Financial results of the Budimex Group after the first half of 2019"},"content":{"rendered":"\n
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29.07.2019<\/p>\n

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Financial results of the Budimex Group after the first half of 2019<\/h2>\n

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\"Budimex<\/strong>Market situation:<\/strong><\/p>\n

>> Construction and assembly production increased in\u00a0the 1st half of the 2019 years. 2019 <\/strong>by\u00a010% to\u00a0PLN 43.1 billion. <\/strong>However, the monthly reading of market dynamics in\u00a0June was much lower, which is a\u00a0negative signal<\/strong> and may mean a\u00a0slowdown in\u00a0orders and an accumulation of work <\/strong>in\u00a0subsequent periods<\/strong><\/p>\n

>> The difficult market situation translates into a\u00a0significant <\/strong>deterioration in\u00a0the financial condition of large entities<\/strong> that carry out the largest orders, largely based on\u00a0subcontracting services<\/p>\n

>> Some general contractors are beginning to\u00a0signal problems with financial liquidity<\/strong>, the first bankruptcy petitions<\/strong> for large entities are appearing<\/p>\n

>> In\u00a0recent months, numerous infrastructure contracts<\/strong> have been terminated<\/strong>, m.in.\u00a0sections of the S5, S61, S7, S3 expressways or\u00a0a\u00a0section of the A1 motorway<\/p>\n

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Budimex Group results:<\/strong>\"Budimex<\/strong><\/p>\n

>> The Group\u2019s sales in\u00a0H1 2019 was close to\u00a0the level of H1. 2018 and reached the level of PLN 3.25 billion<\/strong><\/p>\n

>> The gross profit<\/strong> margin of the Budimex Group amounted to\u00a03.3%<\/strong><\/p>\n

>> The construction segment remains under pressure <\/strong>from cost<\/strong> inflation, gross profit margin fell to\u00a01.7% (compared to\u00a03.6% in\u00a0H1 2018)<\/p>\n

>> The real estate development segment achieved a\u00a0very good gross profit margin <\/strong>of 17.6%,<\/strong> thus improving the result from H1 2019. 2018, when the profitability amounted to\u00a014.3%<\/p>\n

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Cash position of the Budimex Group:\"Budimex<\/strong><\/p>\n

>> In\u00a0the first half of 2019, we\u00a0recorded a\u00a0decrease in\u00a0the net cash balance<\/strong>, typical for <\/strong> this period, to\u00a0PLN 264 million<\/strong><\/p>\n

>> Net cash balance fell m.in.\u00a0as\u00a0a\u00a0result of the payment of dividend<\/strong> in\u00a0the amount of PLN 161 million and the seasonal increase in\u00a0the involvement<\/strong> of working<\/strong> capital in\u00a0the construction part<\/p>\n

>> We\u00a0are constantly observing delays on\u00a0the part of investors in\u00a0the <\/strong>process of accepting and invoicing<\/strong> the works performed<\/p>\n

>> At\u00a0the same time, the increasingly difficult liquidity situation in\u00a0the industry requires the maintenance of the policy of financing <\/strong>subcontractors<\/strong> through early payments and the acceptance of more frequent invoicing of completed works<\/p>\n

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Results of the construction segment of the Budimex Group:\"Budimex<\/strong><\/p>\n

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>> Sales of the construction segment increased by\u00a03%, <\/strong>reaching a\u00a0slightly lower dynamics than the industry \u2013 we\u00a0focus on\u00a0building a\u00a0profitable order book<\/strong><\/p>\n

>> The gross profit margin<\/strong> of the construction part decreased to\u00a0<\/strong>1.7%<\/strong> compared to\u00a03.6% in\u00a0H1 2019. 2018<\/p>\n

>> Due to\u00a0external factors beyond the Company\u2019s control, we\u00a0expect an extended period of construction of the waste incineration plant <\/strong>in\u00a0Vilnius<\/strong> and a\u00a0deterioration of <\/strong> the financial<\/strong> result on\u00a0this contract. We\u00a0are conducting talks with the Ordering Party and the Consortium Member regarding further performance of the contract<\/p>\n

>> The<\/strong> Budimex Group\u2019s order book reached a\u00a0record level of PLN 11.1 billion<\/strong>, mainly thanks to\u00a0new <\/strong>orders in\u00a0the railway segment<\/strong><\/p>\n

>> In\u00a0July, we\u00a0signed a\u00a0contract for the continuation of works on\u00a0the <\/strong>A1 motorway section and the construction of a\u00a0gas pipeline for <\/strong>Gaz-System.<\/strong> Recently, we\u00a0have also acquired new strategic clients<\/strong> such as\u00a0JSW, Tauron and PGNiG<\/p>\n

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Results of the development segment of the Budimex Group:\"Budimex<\/strong><\/p>\n

>> Budimex Nieruchomo\u015bci\u2019s customers in\u00a0the 1st half of the 2019, they signed 947 notarial deeds<\/strong><\/p>\n

>> The expansion of the offer<\/strong> in\u00a0recent months has allowed us to\u00a0achieve pre-sales of 731 apartments<\/strong><\/p>\n

>> The development segment\u2019s revenues decreased by\u00a05% and amounted to\u00a0PLN 313 million, and gross profit <\/strong> to\u00a0PLN 55 million<\/strong> with a\u00a0high profitability of 17.6%<\/p>\n

>> The current offer of Budimex Nieruchomo\u015bci is almost 2 thousand <\/strong>apartments in\u00a05 locations<\/strong><\/p>\n

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The coming quarters through the eyes of the Budimex Group\u2026<\/strong><\/p>\n

>> The situation of the Budimex Group is stable, and the record level of the order book<\/strong> allows for fully effective use of<\/strong> resources<\/strong> and secures the work front for the next few quarters<\/p>\n

>>The average profitability of the portfolio is relatively good<\/strong> , but we\u00a0are still feeling the effects of the completion of difficult contracts signed 2-3 years ago. The valorisation of contracts has been implemented to\u00a0a\u00a0limited extent in\u00a0new <\/strong>projects of GDDKiA and PKP PLK <\/strong>, but there are no\u00a0such solutions in\u00a0local government procurement. As\u00a0of today, we\u00a0cannot assess how the new indexation mechanisms will work in\u00a0practice<\/p>\n

>> The market environment remains difficult, in\u00a0particular in\u00a0terms of the availability and retention of staff<\/strong> as\u00a0well as\u00a0the prices of <\/strong>materials and subcontractors.<\/strong> A\u00a0deterioration in\u00a0the liquidity situation in\u00a0the industry<\/strong> is also visible<\/p>\n

>> We\u00a0have completed negotiations to\u00a0acquire a\u00a051% stake in\u00a0FBSerwis.<\/strong> At\u00a0the beginning of July, thetransaction was <\/strong>finalized<\/strong> and starting from this date, the Budimex Group will start consolidating the results of the FBSerwis Group<\/strong>. It is a\u00a0strategic and long-term investment<\/strong> that diversifies the Budimex Group\u2019s business<\/p>\n

The Budimex Group\u2026<\/strong><\/p>\n

>> It develops corporate social responsibility.<\/strong> Budimex won the 22nd edition of the \u201cBenefactor of the Year\u201d<\/strong> competition in\u00a0the \u201cEducation \u2013 a\u00a0large company\u201d category for its involvement in\u00a0the project of the first forest school \u201cPuszczyk\u201d. Recently, the 30th jubilee Parent Zone in\u00a0Chorz\u00f3w<\/strong> has also been opened<\/p>\n

>> It tries to\u00a0create the best possible working conditions for its employees. Once again, we\u00a0were on\u00a0the podium of the Most <\/strong>Attractive Employers Poland 2019<\/strong> ranking in\u00a0the \u201cEngineering\u201d category<\/p><\/div>\n <\/div>\n

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Gallery<\/h2>\n <\/div>\n <\/div>\n
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Market situation:
\n>> Construction and assembly production increased in H1. 2019 by 10%, reaching PLN 43.1 billion. However, the monthly reading of market dynamics in June was much lower, which is a negative signal and may mean a slowdown in orders and an accumulation of work in subsequent periods
\n>> The difficult market situation translates into a significant deterioration in the financial condition of…<\/p>\n","protected":false},"featured_media":152789,"parent":0,"template":"","press_type":[537],"acf":[],"yoast_head":"\nFinancial results of the Budimex Group after the first half of 2019 - Budimex<\/title>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Financial results of the Budimex Group after the first half of 2019 - Budimex\" \/>\n<meta property=\"og:description\" content=\"Market situation: >> Construction and assembly production increased in H1. 2019 by 10%, reaching PLN 43.1 billion. However, the monthly reading of market dynamics in June was much lower, which is a negative signal and may mean a slowdown in orders and an accumulation of work in subsequent periods >> The difficult market situation translates into a significant deterioration in the financial condition of...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/bdm-stg.mda.pl\/en\/press\/financial-results-of-the-budimex-group-after-the-first-half-of-2019\/\" \/>\n<meta property=\"og:site_name\" content=\"Budimex\" \/>\n<meta property=\"article:modified_time\" content=\"2024-06-07T12:07:24+00:00\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/bdm-stg.mda.pl\/en\/press\/financial-results-of-the-budimex-group-after-the-first-half-of-2019\/\",\"url\":\"https:\/\/bdm-stg.mda.pl\/en\/press\/financial-results-of-the-budimex-group-after-the-first-half-of-2019\/\",\"name\":\"Financial results of the Budimex Group after the first half of 2019 - Budimex\",\"isPartOf\":{\"@id\":\"https:\/\/bdm-stg.mda.pl\/en\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/bdm-stg.mda.pl\/en\/press\/financial-results-of-the-budimex-group-after-the-first-half-of-2019\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/bdm-stg.mda.pl\/en\/press\/financial-results-of-the-budimex-group-after-the-first-half-of-2019\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/bdm-stg.mda.pl\/app\/uploads\/2024\/06\/s-x-x-545.jpg\",\"datePublished\":\"2019-07-29T08:39:18+00:00\",\"dateModified\":\"2024-06-07T12:07:24+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/bdm-stg.mda.pl\/en\/press\/financial-results-of-the-budimex-group-after-the-first-half-of-2019\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/bdm-stg.mda.pl\/en\/press\/financial-results-of-the-budimex-group-after-the-first-half-of-2019\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/bdm-stg.mda.pl\/en\/press\/financial-results-of-the-budimex-group-after-the-first-half-of-2019\/#primaryimage\",\"url\":\"https:\/\/bdm-stg.mda.pl\/app\/uploads\/2024\/06\/s-x-x-545.jpg\",\"contentUrl\":\"https:\/\/bdm-stg.mda.pl\/app\/uploads\/2024\/06\/s-x-x-545.jpg\",\"width\":367,\"height\":288},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/bdm-stg.mda.pl\/en\/press\/financial-results-of-the-budimex-group-after-the-first-half-of-2019\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/bdm-stg.mda.pl\/en\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Financial results of the Budimex Group after the first half of 2019\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/bdm-stg.mda.pl\/en\/#website\",\"url\":\"https:\/\/bdm-stg.mda.pl\/en\/\",\"name\":\"Budimex\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/bdm-stg.mda.pl\/en\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Financial results of the Budimex Group after the first half of 2019 - Budimex","robots":{"index":"noindex","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"og_locale":"en_US","og_type":"article","og_title":"Financial results of the Budimex Group after the first half of 2019 - Budimex","og_description":"Market situation: >> Construction and assembly production increased in H1. 2019 by 10%, reaching PLN 43.1 billion. 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