{"id":155913,"date":"2019-02-27T12:19:22","date_gmt":"2019-02-27T12:19:22","guid":{"rendered":"https:\/\/bdm-stg.mda.pl\/informacje-prasowe\/financial-results-of-the-budimex-group-in-2018\/"},"modified":"2024-06-07T12:08:01","modified_gmt":"2024-06-07T12:08:01","slug":"financial-results-of-the-budimex-group-in-2018","status":"publish","type":"press","link":"https:\/\/bdm-stg.mda.pl\/en\/press\/financial-results-of-the-budimex-group-in-2018\/","title":{"rendered":"Financial results of the Budimex Group in 2018"},"content":{"rendered":"\n<section id=\"block_3c43ec8827892ebc72012ab259fe5aa4\" class=\"text-block   -hide-dots section-margin-120\">\n    <div class=\"container\">\n        <div class=\"row\">\n            <div class=\"col-24 col-lg-16\">\n                                    <p class=\"typo-18 under-p-medium color-gray-120 text-block__date\">27.02.2019<\/p>\n                                                    <div class=\"text-block__top-texts under-h2\">\n                        <h2 class=\"text-block__title under-p-big\">Financial results of the Budimex Group in 2018<\/h2>\n                                                    <p class=\"typo-18 under-p-medium color-gray-120\">\n                                \n<div class=\"card-share card-share--flex\">\n    <div class=\"card-share__inner\">\n        <p class=\"card-share__title typo-18\">Share article<\/p>\n        <div class=\"card-share__links\">\n            <div class=\"card-share__link card-share__link--facebook\">\n                <a href=\"https:\/\/www.facebook.com\/sharer\/sharer.php?u=https:\/\/bdm-stg.mda.pl\/en\/press\/financial-results-of-the-budimex-group-in-2018\/\" target=\"_blank\">\n                    <span class=\"card-share__linkIcon icon icon-facebook d-flex\"><\/span>\n                <\/a>\n            <\/div>\n            <div class=\"card-share__link card-share__link--linkedin\">\n                <a href=\"https:\/\/www.linkedin.com\/shareArticle?mini=true&#038;url=https:\/\/bdm-stg.mda.pl\/en\/press\/financial-results-of-the-budimex-group-in-2018\/\" target=\"_blank\" rel=\"nofollow\">\n                    <span class=\"card-share__linkIcon icon icon-linkedin\"><\/span>\n                <\/a>\n            <\/div>\n            <div class=\"card-share__link card-share__link--twitter\">\n                <a href=\"https:\/\/twitter.com\/intent\/tweet?url=https%3A%2F%2Fbdm-stg.mda.pl%2Fen%2Fpress%2Ffinancial-results-of-the-budimex-group-in-2018%2F\" target=\"_blank\" rel=\"nofollow\">\n                    <span class=\"card-share__linkIcon icon icon-x\"><\/span>\n                <\/a>\n            <\/div>\n        <\/div>\n    <\/div>\n<\/div>                            <\/p>\n                                            <\/div>\n                                                                                    <div class=\"text-block__text text-editor\"><p>            <strong>Market situation in the construction industry:<img loading=\"lazy\" decoding=\"async\" style=\"margin: 10px;float: right\" src=\"https:\/\/d2xhqqdaxyaju6.cloudfront.net\/file\/attachment-s\/1384544\/bb\/s-229-x.jpg\" alt=\"Sector budowlany.jpg\" width=\"229\" height=\"221\"><\/strong>\n          <\/p>\n<\/p>\n<ul>\n<li>Construction and assembly production <strong>increased by 21% in 2018 <\/strong>, reaching a record level of <strong>PLN 102 billion<\/strong><\/li>\n<li>The year 2018 brought a build-up of problems in the sector, <strong>including terminated contracts and bankruptcies of large companies<\/strong><\/li>\n<li>The industry\u2019s appeals for the introduction <strong>of contract valorisation<\/strong> have not solved the problems with contracts in progress \u2013 the changes will apply to new projects<\/li>\n<li>After 9 months of 2018, <strong>the gross profit margin of the construction industry fell to 3.6%<\/strong><\/li>\n<li><strong>Market difficulties affected mainly large companies<\/strong> (over 250 employees), where <strong>gross profitability<\/strong> after the first half of 2018 <strong>fell below zero<\/strong><\/li>\n<\/ul>\n<p>\n            <strong>Budimex Group results:<img loading=\"lazy\" decoding=\"async\" style=\"margin: 10px;float: right\" src=\"https:\/\/d2xhqqdaxyaju6.cloudfront.net\/file\/attachment-s\/1384545\/7f\/s-235-x.jpg\" alt=\"zysk\u00f3w.jpg account\" width=\"235\" height=\"166\"><\/strong>\n          <\/p>\n<\/p>\n<ul>\n<li>The Group\u2019s sales in 2018 <strong>increased by 16% <\/strong>and reached a<strong> record level of PLN 7.4 billion<\/strong><\/li>\n<li><strong>Gross profit margin was 5.5% <\/strong>compared to 9.1% in 2017<\/li>\n<li>Market difficulties resulted in a <strong>significant decline in the profitability of the construction segment<\/strong>. The Group\u2019s results were supported by<strong>Record profits of the real estate development segment<\/strong><\/li>\n<li>During the year, in accordance with the assumed strategy,<strong> Elektromonta\u017c-Pozna\u0144 S.A.<\/strong> was sold.<\/li>\n<\/ul>\n<\/p>\n<p>\n            <strong>Cash position of the Budimex Group:<\/strong>\n          <\/p>\n<\/p>\n<ul>\n<li>At the end of Q4, the<strong> Budimex Group\u2019s net cash amounted to PLN 1,145 million<\/strong><\/li>\n<li>Net cash balance fell m.in. as a result of a significant <strong>decrease in contractual advances <\/strong>and<strong> the payment of a record dividend<\/strong>. During the year, investments in <strong>the machine park<\/strong> consumed over <strong>PLN 100 million<\/strong> , and <strong>expenditures on the purchase of land<\/strong> for development projects exceeded<strong> PLN 200 million<\/strong><\/li>\n<li>We are constantly observing <strong>delays on the part of investors in the process of accepting and invoicing<\/strong> the works performed<\/li>\n<\/ul>\n<p>Market conditions encourage us to <strong>maintain the policy of financing subcontractors<\/strong> through early payments and frequent invoicing of the works carried out.<\/p>\n<\/p>\n<p>\n            <strong>Results of the construction segment of the Budimex Group:<img loading=\"lazy\" decoding=\"async\" style=\"margin: 10px;float: right\" src=\"https:\/\/d2xhqqdaxyaju6.cloudfront.net\/file\/attachment-s\/1384546\/ba\/s-226-x.jpg\" alt=\"Result of the construction segment 2018.jpg\" width=\"226\" height=\"310\"><\/strong>\n          <\/p>\n<\/p>\n<ul>\n<li><strong>Sales of the construction segment increased by 16%<\/strong> <br \/>  compared to the same period of the previous year<\/li>\n<li>Despite very demanding market conditions, the gross profit margin of the construction part stabilized<strong> at 3.7%,<\/strong> significantly above the profitability ratio of companies employing more than 250 employees<\/li>\n<li><strong>The Budimex Group\u2019s order book remained at the level of over PLN 10 billion <\/strong>and was slightly lower than at the end of the previous year<\/li>\n<li><strong>A responsible approach to new offers<\/strong> translated into a decrease in the value of contracts signed year on year  <br \/>  to <strong>PLN 6.6 billion<\/strong><\/li>\n<li><strong>Cost inflation in the<\/strong> sector results in a significant increase in the prices offered, which translates into regular <strong>overruns of investor budgets<\/strong><\/li>\n<li>Due to protracted tender procedures, contractors often <strong>resign from signing the contract<\/strong><\/li>\n<\/ul>\n<p>\n            <strong>Results of the development segment of the Budimex Group:<img loading=\"lazy\" decoding=\"async\" style=\"margin: 10px;float: right\" src=\"https:\/\/d2xhqqdaxyaju6.cloudfront.net\/file\/attachment-s\/1384547\/b1\/s-219-x.jpg\" alt=\"Result of the deweloperskiego.jpg segment\" width=\"219\" height=\"230\"><\/strong>\n          <\/p>\n<\/p>\n<ul>\n<li>In 2018, Budimex Nieruchomo\u015bci\u2019s clients signed <strong>1,672 notarial deeds<\/strong>in. as part of the next stages of the Wi\u015blany Mokot\u00f3w, Nowe Czy\u017cyny, Osiedle przy Rolnej and Osiedle na Smolnej investments<\/li>\n<li>Revenue of the real estate development segment increased by 9%  <br \/>  and amounted to <strong>PLN 548 million<\/strong> , and gross <strong>profit <br \/> amounted to PLN 95 million <\/strong>with a margin of 17.3%<\/li>\n<li>Pre-sales in the property development segment reached <strong>1,208 apartments<\/strong> (a decrease of 17%)<\/li>\n<\/ul>\n<ul>\n<li>Expenditures on land <strong>exceeded PLN 200 million<\/strong> and <strong>covered all key locations<\/strong><\/li>\n<\/ul>\n<p>\n            <strong>The coming quarters through the eyes of the Budimex Group\u2026<\/strong>\n          <\/p>\n<\/p>\n<ul>\n<li><strong>The situation of the Budimex Group is stable<\/strong>, the current <strong>level of the order book is safe.<\/strong> The profitability of the portfolio is <strong>relatively good<\/strong> and should stabilize with the signing of new projects<\/li>\n<li><strong>The introduced indexation solutions only partially solve the problem of rising costs<\/strong>. Difficult projects, signed 2-3 years ago, will not be valorised, which may translate into <strong>a further deterioration of the condition of entities operating in the industry. <\/strong>The<strong> availability <br \/> and retention of staff<\/strong> remains a challenge<\/li>\n<li>The continuing dynamic increase in construction prices makes the <strong>profitability of subsequent quarters <\/strong>in the industry and in the construction segment of the Budimex Group<strong>  may remain under pressure. The goal for the coming quarters is to maintain profitability above market indicators<\/strong><\/li>\n<\/ul>\n<\/p>\n<p>\n            <strong>The Budimex Group\u2026<\/strong>\n          <\/p>\n<\/p>\n<ul>\n<li>It is the largest <strong>payer of PIT and CIT taxes<\/strong> in the industry (over <strong>PLN 120 million<\/strong> paid in 2018)<\/li>\n<li><strong>It supports local governments, sports teams and social projects.<\/strong> In 2018, we invested PLN 4.5 million in<strong> social programs, sponsorships and donations\u00a0<\/strong><\/li>\n<\/ul>\n<\/div>\n                            <\/div>\n                                                                                                                                <\/div>\n    <\/div>\n<\/section>\n    <section id=\"block_ad6d0f17f0c61c0d3c54a18e024c8e7d\" class=\"gallery-section section-margin-120\" data-per-page=\"8\" data-per-row=\"4\" data-type=\"zdjecia\">\n        <div class=\"container\">\n            <div class=\"row\">\n                                    <div class=\"col-24\">\n                        <h2 class=\"gallery-section__title under-h2\">Gallery<\/h2>\n                    <\/div>\n                            <\/div>\n            <div class=\"row\">\n                <div class=\"col-24\">\n                                                                        <div class=\"gallery-section__grid gallery-section__grid--4\">\n                                \n                        <div class=\"gallery-section__image gallery-section__image--single\">\n                <a href=\"\">\n                                                                            <\/a>\n                            <\/div>\n                                <div class=\"gallery-section__image gallery-section__image--single\">\n                <a href=\"\">\n                                                                            <\/a>\n                            <\/div>\n                                <div class=\"gallery-section__image gallery-section__image--single\">\n                <a href=\"\">\n                                                                            <\/a>\n                            <\/div>\n                                <div class=\"gallery-section__image gallery-section__image--single\">\n                <a href=\"\">\n                                                                            <\/a>\n                            <\/div>\n                                <div class=\"gallery-section__image gallery-section__image--single\">\n                <a href=\"\">\n                                                                            <\/a>\n                            <\/div>\n            \n                            <\/div>\n                                                                                        <\/div>\n            <\/div>\n        <\/div>\n    <\/section>\n","protected":false},"excerpt":{"rendered":"<p>  Market situation in the construction industry:<\/p>\n<p>Construction and assembly production increased by 21% in 2018, reaching a record level of PLN 102 billion<br \/>\nThe year 2018 brought a build-up of problems in the sector, including terminated contracts and bankruptcies of large companies<br \/>\nThe industry&#8217;s appeals for the introduction of valorisation of contracts have not solved the problems regarding contracts in progress \u2013 the changes will concern&#8230;<\/p>\n","protected":false},"featured_media":153188,"parent":0,"template":"","press_type":[537,790,803],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.5 - 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