{"id":156045,"date":"2017-04-27T06:35:31","date_gmt":"2017-04-27T06:35:31","guid":{"rendered":"https:\/\/bdm-stg.mda.pl\/informacje-prasowe\/commentary-by-the-president-of-the-management-board-of-budimex-sa-dariusz-blocher-on-the-financial-data-from-the-consolidated-financial-statements-of-the-budimex-group-for-q1-2017\/"},"modified":"2024-06-07T12:08:47","modified_gmt":"2024-06-07T12:08:47","slug":"commentary-by-the-president-of-the-management-board-of-budimex-sa-dariusz-blocher-on-the-financial-data-from-the-consolidated-financial-statements-of-the-budimex-group-for-q1-2017","status":"publish","type":"press","link":"https:\/\/bdm-stg.mda.pl\/en\/press\/commentary-by-the-president-of-the-management-board-of-budimex-sa-dariusz-blocher-on-the-financial-data-from-the-consolidated-financial-statements-of-the-budimex-group-for-q1-2017\/","title":{"rendered":"Commentary by the President of the Management Board of Budimex SA \u2013 Dariusz Blocher on the financial data from the consolidated financial statements of the Budimex Group for Q1 2017"},"content":{"rendered":"\n<section id=\"block_524bc018f7830e8f211288efb7d4754f\" 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\">27.04.2017<\/p>\n                                                    <div class=\"text-block__top-texts under-h2\">\n                        <h2 class=\"text-block__title under-p-big\">Commentary by the President of the Management Board of Budimex SA \u2013 Dariusz Blocher on the financial data from the consolidated financial statements of the Budimex Group for Q1 2017<\/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\/commentary-by-the-president-of-the-management-board-of-budimex-sa-dariusz-blocher-on-the-financial-data-from-the-consolidated-financial-statements-of-the-budimex-group-for-q1-2017\/\" 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\/commentary-by-the-president-of-the-management-board-of-budimex-sa-dariusz-blocher-on-the-financial-data-from-the-consolidated-financial-statements-of-the-budimex-group-for-q1-2017\/\" 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%2Fcommentary-by-the-president-of-the-management-board-of-budimex-sa-dariusz-blocher-on-the-financial-data-from-the-consolidated-financial-statements-of-the-budimex-group-for-q1-2017%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>The Budimex Group ended the first quarter of 2017 with very good results \u2013 high sales for the winter season, a significant improvement in profitability and a record high order book.<\/p>\n<p>Sales in the construction segment of the Budimex Group in the first quarter of 2017 increased by 6.5% compared to the same period of the previous year, reaching PLN 991 million. At the same time, construction and assembly production increased by 4.3%. We expect that the coming quarters will bring an acceleration of sales dynamics in the construction part of the Group, mainly due to the completion of design works and the entry into the construction phase of some contracts carried out in the \u201cdesign and build\u201d system.<\/p>\n<p>The real estate development segment also recorded an increase in sales. In the first quarter of 2017, 409 apartments were sold by notaries, 69% more than in the same period of the previous year. As a result, sales in the development segment increased by 29.1% year-on-year, reaching PLN 101 million.<\/p>\n<p>In the first quarter of 2017, the Budimex Group generated very good results, improving them compared to the previous year at every level: gross margin, operating result and net result by 42%, 75% and 64%, respectively. The high profitability of the first quarter was mainly due to the settlement of expiring infrastructure contracts signed 2-3 years ago. The good results of Mostostal Krak\u00f3w and its operations on the German market also helped.<\/p>\n<p>At the end of March 2017, the value of the Budimex Group\u2019s order book reached a historically high level of PLN 9.3 billion and is higher than the value at the end of 2016 by PLN 375 million. During the first three months of 2017, the Budimex Group signed contracts worth PLN 1.3 billion. The value of the contracts signed is 15% lower than the value in the corresponding period of 2016. Contracts awaiting signing currently amount to about PLN 1.5 billion, of which over 50% are railway projects, where the offers of the Group companies have already been selected as the most advantageous.<\/p>\n<p>In the first quarter of 2017, we signed a contract for the construction of the \u0141agiewnicka Route, worth PLN 652 million, which is of key importance for the Krak\u00f3w agglomeration. The contract is being executed in the \u201cdesign and build\u201d system and its implementation will not have a significant impact on the financial results of 2017.<\/p>\n<p>For several months now, we have been observing a revival in the infrastructure tender market. However, the scale of the rebound is smaller than the market expected. At the same time, very strong competition and high price pressure are visible \u2013 in the first quarter of 2017 we did not manage to win GDDKiA tenders. We are currently preparing to submit further offers m.in. for the construction of sections of the S61, S19, S7 routes. We also continue to focus on acquiring further railway contracts. So far, we have managed to win contracts worth PLN 1.1 billion.<\/p>\n<p>In the first quarter of 2017, we recorded a decrease in the level of cash, which is characteristic of this period. Despite this, at the end of the first quarter of 2017, the Budimex Group maintained its net cash position at a satisfactory level of PLN 2.0 billion, comparable to the previous year.<\/p>\n<p>In the first quarter of 2017, the pre-sale of apartments on the residential market in Poland increased by over 20% compared to the same period of the previous year. In the Budimex Group, in line with the market trend, we recorded an increase in pre-sold apartments by 24%. During the first three months of 2017, pre-sales reached the level of 392 apartments compared to 317 apartments in the same period of the previous year. In the first quarter of 2017, we started the implementation of three new projects \u2013 in Gda\u0144sk, Krak\u00f3w and Warsaw, for a total of over 570 apartments. To meet the ever-growing demand, we are looking for attractive locations for new investments. In the first quarter of 2017, we purchased a plot of land in Warsaw, which will enable the construction of over 1000 apartments. Currently, over 3800 apartments are under construction, of which 1258 are offered to customers as non-pre-sold.<\/p>\n<p>Despite high notarial sales, the operating and net results of the real estate development segment in the first quarter of 2017 remain at a comparable level compared to the corresponding period of the previous year. This is the expected effect that results from the start of handing over apartments as part of the \u201cNowe Czy\u017cyny\u201d project in Krakow.<\/p>\n<p>For the ninth year in a row, due to the good results of 2016 and the high level of cash, the Management Board recommended the payment of a dividend and the allocation of the entire net profit for 2016 for this purpose. The General Meeting of Shareholders will make the final decision on this matter on 11 May 2017. The dividend paid in June 2017 would reach a historically high level of PLN 14.99 gross per share.<\/p>\n<p>We are not changing our plans in terms of HR policy \u2013 we plan to further increase employment in 2017. In the first quarter, we employed almost 200 people in the Budimex Group on the domestic market. At the same time, in 2017 we will have to face growing pressure on wage growth and a further decline in the availability of qualified staff.<\/p>\n<p>In the coming quarters, our activities will focus on building a profitable order portfolio for the coming years. However, increased competition in bidding to GDDKiA, high price pressure, as well as long tender procedures may make it difficult to achieve a satisfactory level of contracting in 2017. In the near future, we will also have to face the observed increase in the prices of materials and subcontractors\u2019 costs. Therefore, it will be very important to pay special attention to the costs of the contracts being executed and a responsible approach to the calculation of new offers.<\/p>\n<p>\n            <strong>BUDIMEX Group  <\/strong>\n          <\/p>\n<p>Selected financial data from the consolidated financial statements of the Budimex Group prepared in accordance with International Financial Reporting Standards (IFRS) for the first quarter of 2017 and comparable data for the first quarter of 2016.<\/p>\n<p>\n            <u>Results of the reporting segments <strong>for the first quarter of 2017 <\/strong>(in PLN thousand):  <\/u>\n          <\/p>\n<p>\n            <strong> <\/strong>\n          <\/p>\n<table width=\"605\">\n<tbody>\n<tr>\n<td width=\"194\"> <\/td>\n<td width=\"84\">\n<p>Construction segment<\/p>\n<\/td>\n<td width=\"84\">\n<p>Development segment<\/p>\n<\/td>\n<td width=\"74\">\n<p>Other activities<\/p>\n<\/td>\n<td width=\"66\">\n<p>Disable<\/p>\n<\/td>\n<td width=\"104\">\n<p>\n                    <strong>Consolidated data  <\/strong>\n                  <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"194\">\n<p>Net revenues from the sale of products, goods and materials<\/p>\n<\/td>\n<td width=\"84\">\n<p>990 566<\/p>\n<\/td>\n<td width=\"84\">\n<p>100 952<\/p>\n<\/td>\n<td width=\"74\">\n<p>41 605<\/p>\n<\/td>\n<td width=\"66\">\n<p>(80 383)<\/p>\n<\/td>\n<td width=\"104\">\n<p>\n                    <strong>1 052 740<\/strong>\n                  <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"194\">\n<p>Gross profit on sales<\/p>\n<\/td>\n<td width=\"84\">\n<p>140 117<\/p>\n<\/td>\n<td width=\"84\">\n<p>19 606<\/p>\n<\/td>\n<td width=\"74\">\n<p>5 307<\/p>\n<\/td>\n<td width=\"66\">\n<p>(2 020)<\/p>\n<\/td>\n<td width=\"104\">\n<p>\n                    <strong>163 010<\/strong>\n                  <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"194\">\n<p>Selling costs<\/p>\n<\/td>\n<td width=\"84\">\n<p>(2 447)<\/p>\n<\/td>\n<td width=\"84\">\n<p>(3 967)<\/p>\n<\/td>\n<td width=\"74\">\n<p>(1 224)<\/p>\n<\/td>\n<td width=\"66\">\n<p>14<\/p>\n<\/td>\n<td width=\"104\">\n<p>\n                    <strong>(7 624)<\/strong>\n                  <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"194\">\n<p>General and administrative expenses<\/p>\n<\/td>\n<td width=\"84\">\n<p>(49 003)<\/p>\n<\/td>\n<td width=\"84\">\n<p>(4 933)<\/p>\n<\/td>\n<td width=\"74\">\n<p>(1 410)<\/p>\n<\/td>\n<td width=\"66\">\n<p>2 579<\/p>\n<\/td>\n<td width=\"104\">\n<p>\n                    <strong>(52 767)<\/strong>\n                  <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"194\">\n<p>Operating profit\/(loss)<\/p>\n<\/td>\n<td width=\"84\">\n<p>95 459<\/p>\n<\/td>\n<td width=\"84\">\n<p>11 210<\/p>\n<\/td>\n<td width=\"74\">\n<p>3 108<\/p>\n<\/td>\n<td width=\"66\">\n<p>573<\/p>\n<\/td>\n<td width=\"104\">\n<p>\n                    <strong>110 350<\/strong>\n                  <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"194\">\n<p>Gross profit\/(loss)<\/p>\n<\/td>\n<td width=\"84\">\n<p>93 617<\/p>\n<\/td>\n<td width=\"84\">\n<p>12 040<\/p>\n<\/td>\n<td width=\"74\">\n<p>633<\/p>\n<\/td>\n<td width=\"66\">\n<p>573<\/p>\n<\/td>\n<td width=\"104\">\n<p>\n                    <strong>106 863<\/strong>\n                  <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"194\">\n<p>Net profit\/(loss)<\/p>\n<\/td>\n<td width=\"84\">\n<p>75 005<\/p>\n<\/td>\n<td width=\"84\">\n<p>9 648<\/p>\n<\/td>\n<td width=\"74\">\n<p>136<\/p>\n<\/td>\n<td width=\"66\">\n<p>464<\/p>\n<\/td>\n<td width=\"104\">\n<p>\n                    <strong>85 253<\/strong>\n                  <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"194\">\n<p>Profit (loss) attributable to shareholders of the Parent Company<\/p>\n<\/td>\n<td width=\"84\">\n<p>75 005<\/p>\n<\/td>\n<td width=\"84\">\n<p>9 648<\/p>\n<\/td>\n<td width=\"74\">\n<p>(14)<\/p>\n<\/td>\n<td width=\"66\">\n<p>519<\/p>\n<\/td>\n<td width=\"104\">\n<p>\n                    <strong>85 158<\/strong>\n                  <\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\n            <u> <\/u>\n          <\/p>\n<p>\n            <u>Results of the reporting segments <strong>for the first quarter of 2016 <\/strong>(in PLN thousands):  <\/u>\n          <\/p>\n<table width=\"604\">\n<tbody>\n<tr>\n<td width=\"193\"> <\/td>\n<td width=\"83\">\n<p>Construction segment<\/p>\n<\/td>\n<td width=\"83\">\n<p>Development segment<\/p>\n<\/td>\n<td width=\"87\">\n<p>Other activities<\/p>\n<\/td>\n<td width=\"66\">\n<p>Disable<\/p>\n<\/td>\n<td width=\"93\">\n<p>\n                    <strong>Consolidated data  <\/strong>\n                  <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"193\">\n<p>Net revenues from the sale of products, goods and materials<\/p>\n<\/td>\n<td width=\"83\">\n<p>929 913<\/p>\n<\/td>\n<td width=\"83\">\n<p>78 203<\/p>\n<\/td>\n<td width=\"87\">\n<p>51 730<\/p>\n<\/td>\n<td width=\"66\">\n<p>(72 192)<\/p>\n<\/td>\n<td width=\"93\">\n<p>\n                    <strong>987 654<\/strong>\n                  <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"193\">\n<p>Gross profit on sales<\/p>\n<\/td>\n<td width=\"83\">\n<p>90 104<\/p>\n<\/td>\n<td width=\"83\">\n<p>18 769<\/p>\n<\/td>\n<td width=\"87\">\n<p>8 528<\/p>\n<\/td>\n<td width=\"66\">\n<p>(2 412)<\/p>\n<\/td>\n<td width=\"93\">\n<p>\n                    <strong>114 989<\/strong>\n                  <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"193\">\n<p>Selling costs<\/p>\n<\/td>\n<td width=\"83\">\n<p>(2 729)<\/p>\n<\/td>\n<td width=\"83\">\n<p>(3 167)<\/p>\n<\/td>\n<td width=\"87\">\n<p>(1 135)<\/p>\n<\/td>\n<td width=\"66\">\n<p>13<\/p>\n<\/td>\n<td width=\"93\">\n<p>\n                    <strong>(7 018)<\/strong>\n                  <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"193\">\n<p>General and administrative expenses<\/p>\n<\/td>\n<td width=\"83\">\n<p>(46 211)<\/p>\n<\/td>\n<td width=\"83\">\n<p>(4 309)<\/p>\n<\/td>\n<td width=\"87\">\n<p>(1 471)<\/p>\n<\/td>\n<td width=\"66\">\n<p>2 289<\/p>\n<\/td>\n<td width=\"93\">\n<p>\n                    <strong>(49 702)<\/strong>\n                  <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"193\">\n<p>Operating profit\/(loss)<\/p>\n<\/td>\n<td width=\"83\">\n<p>44 222<\/p>\n<\/td>\n<td width=\"83\">\n<p>11 317<\/p>\n<\/td>\n<td width=\"87\">\n<p>7 466<\/p>\n<\/td>\n<td width=\"66\">\n<p>(110)<\/p>\n<\/td>\n<td width=\"93\">\n<p>\n                    <strong>62 895<\/strong>\n                  <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"193\">\n<p>Gross profit\/(loss)<\/p>\n<\/td>\n<td width=\"83\">\n<p>48 198<\/p>\n<\/td>\n<td width=\"83\">\n<p>12 517<\/p>\n<\/td>\n<td width=\"87\">\n<p>5 536<\/p>\n<\/td>\n<td width=\"66\">\n<p>(110)<\/p>\n<\/td>\n<td width=\"93\">\n<p>\n                    <strong>66 141<\/strong>\n                  <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"193\">\n<p>Net profit\/(loss)<\/p>\n<\/td>\n<td width=\"83\">\n<p>37 607<\/p>\n<\/td>\n<td width=\"83\">\n<p>10 117<\/p>\n<\/td>\n<td width=\"87\">\n<p>4 281<\/p>\n<\/td>\n<td width=\"66\">\n<p>(88)<\/p>\n<\/td>\n<td width=\"93\">\n<p>\n                    <strong>51 917<\/strong>\n                  <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"193\">\n<p>Profit\/(loss) attributable to shareholders of the Parent Company<\/p>\n<\/td>\n<td width=\"83\">\n<p>37 607<\/p>\n<\/td>\n<td width=\"83\">\n<p>10 117<\/p>\n<\/td>\n<td width=\"87\">\n<p>3 906<\/p>\n<\/td>\n<td width=\"66\">\n<p>(88)<\/p>\n<\/td>\n<td width=\"93\">\n<p>\n                    <strong>51 542<\/strong>\n                  <\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n                            <\/div>\n                                                                                                                                <\/div>\n    <\/div>\n<\/section>\n    <section id=\"block_41032b37656f81d9bb3e197bd4571296\" 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            \n                            <\/div>\n                                                                                        <\/div>\n            <\/div>\n        <\/div>\n    <\/section>\n","protected":false},"excerpt":{"rendered":"<p>The Budimex Group ended the first quarter of 2017 with very good results \u2013 high sales for the winter season, a significant improvement in profitability and a record high order book.<\/p>\n","protected":false},"featured_media":153945,"parent":0,"template":"","press_type":[537],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Commentary by the President of the Management Board of Budimex SA \u2013 Dariusz Blocher on the financial data from the consolidated financial statements of the Budimex Group for Q1 2017 - 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=\"Commentary by the President of the Management Board of Budimex SA \u2013 Dariusz Blocher on the financial data from the consolidated 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