{"id":156066,"date":"2017-02-24T08:33:57","date_gmt":"2017-02-24T08:33:57","guid":{"rendered":"https:\/\/bdm-stg.mda.pl\/informacje-prasowe\/commentary-by-the-president-of-the-management-board-of-budimex-sa-dariusz-blocher-on-selected-financial-data-from-the-consolidated-financial-statements-of-the-budimex-group-for-2016\/"},"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-selected-financial-data-from-the-consolidated-financial-statements-of-the-budimex-group-for-2016","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-selected-financial-data-from-the-consolidated-financial-statements-of-the-budimex-group-for-2016\/","title":{"rendered":"Commentary by the President of the Management Board of Budimex SA &#8211; Dariusz Blocher on selected financial data from the consolidated financial statements of the Budimex Group for 2016"},"content":{"rendered":"\n<section id=\"block_f093068cbf74d760a7005ee396e507a9\" 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\">24.02.2017<\/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 &#8211; Dariusz Blocher on selected financial data from the consolidated financial statements of the Budimex Group for 2016<\/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-selected-financial-data-from-the-consolidated-financial-statements-of-the-budimex-group-for-2016\/\" 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-selected-financial-data-from-the-consolidated-financial-statements-of-the-budimex-group-for-2016\/\" 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-selected-financial-data-from-the-consolidated-financial-statements-of-the-budimex-group-for-2016%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>2016 was another very good year for the Budimex Group, in which Budimex SA achieved results placing the company in the first place of the largest construction companies in Poland. Despite a 14.4% drop in construction and assembly production, the Group increased sales by 8.5% and generated a record net profit of PLN 410 million. Last year, we completed the construction of 87 kilometres of expressways  <br \/>  and motorways, which accounted for more than 2\/3 of the total length of routes put into use by GDDKiA. Some of the sections, as previously announced, were completed earlier than the contract deadline assumed.<\/p>\n<p>During the year, the construction market continued to enjoy favourable prices of raw materials and relatively low prices of subcontractors\u2019 services, resulting from the poor condition of the sector. In addition, in the fourth quarter we recorded a significant decrease in the provision for expected losses on one of the infrastructure contracts being executed. These factors, combined with improved operational efficiency, resulted in improved profitability at every level of the financial result. Gross margin on sales, operating result and net result increased by 52%, 73% and 74%, respectively, compared to the same period of the previous year.<\/p>\n<p>In 2016, the value of infrastructure tenders dropped significantly, mainly due to the suspension of tender procedures by GDDKiA. Value of bids submitted by Budimex  <br \/>  in the road segment in the entire year 2016 amounted to PLN 7.3 billion and was lower by over 70%  <br \/>  in relation to the value of offers submitted in 2015. At the same time, in the second half of the year, the offer of railway tenders co-financed from the EU budget gained momentum. So far, contractors have submitted price offers to PKP PLK for over 20 projects for a total amount of over PLN 9 billion net.<\/p>\n<p>Despite unfavourable market conditions, the Budimex Group won contracts in 2016  <br \/>  worth PLN 5.7 billion (a decrease of 20% compared to 2015). At the same time, the total value of bids submitted by the company decreased by 39%. A satisfactory level of contracting was achieved, among other things, thanks to the intensification of work in the area of general construction. In this segment, we increased the value of contracts acquired by 34% year-on-year, signing contracts for a record PLN 2.8 billion.<\/p>\n<p>The value of contracts signed with GDDKiA decreased in 2016 by 64% and amounted to PLN 1.6 billion. Only thanks to the high efficiency of bidding in other areas of the road market, the total value of infrastructure contracts reached a satisfactory level of PLN 2.4 billion.<\/p>\n<p>The value of contracts in which the Budimex Group has submitted the lowest price or the most advantageous offers is currently about PLN 3.9 billion, of which 25% are railway orders and 33% are projects where the contracting authority is GDDKiA.<\/p>\n<p>The value of the order book at the end of 2016 amounted to PLN 8.9 billion and was higher<br \/>  by PLN 0.5 billion (6%) from the value at the end of 2015. The change in the structure of the contracts acquired was reflected in the order portfolio. The share of road projects fell from 65% at the end of 2015 to 57% at the end of 2016. At the same time, the general construction segment accounted for 29% of the order backlog, up 7 percentage points compared to the same period of the previous year.<\/p>\n<\/p>\n<p>Net cash position as at December 31st 2016 amounted to PLN 2.6bn. This is 13% higher than as at December 31st 2015. The increase in cash in 2016 was driven by improved profitability in the construction segment, as well as seasonally high cash flows in the fourth quarter. The improvement in the Group\u2019s cash position is also the result of an increase in the balance of funds paid for the purchase of apartments by Budimex Nieruchomo\u015bci\u2019s customers.  <\/p>\n<p>In 2016, pre-sales of the development segment amounted to 1,615 apartments and were 16% (303 apartments) lower than in the previous year. The weakening of the pace of pre-sales is mainly due to  <br \/>  from the expiring, very attractive, offer of the \u201cNowe Czy\u017cyny\u201d project in Krakow (a decrease by 582 apartments).<\/p>\n<p>In 2016, in response to increased demand from customers, we started pre-sales of apartments in twelve new projects. We have spent over PLN 100 million on land purchases. As a result, we have increased the portfolio of projects ready for launch for another year in a row \u2013 currently it is over 6,400 apartments. Maintaining pre-sales at the level of 1,500 units per year in the coming years will require a constant level of about 4,000 apartments under construction.<\/p>\n<p>In 2016, 1,188 notarial deeds were signed, which is 31% more than in 2015. At the same time, the growth rate of recognized sales was slightly lower and amounted to 19%. The lower increase in sales is the result of an increased share of projects located outside Warsaw, mainly in Krakow \u2013 an increase in the share from 25% to 44% in 2016. This trend will be visible in the coming quarters due to the planned further handovers of apartments from the \u201cNowe Czy\u017cyny\u201d project.<\/p>\n<p>In 2017, our activities will focus on building a profitable order portfolio for the coming years. We are observing a revival in the market of infrastructure tenders, both road and rail.  <br \/>  In February, we submitted the lowest price bids in two tenders for the construction of the Western Bypass of \u0141\u00f3d\u017a for a total amount of PLN 1.3 billion net. In both cases, we are waiting for further decisions from the contracting authority, as the bids exceed the budget. We are currently preparing to submit further offers m.in. sections of the S19, S7 and S3 routes.<\/p>\n<p>We have signed most of the contracts for the supply of railway equipment. Over the last few months, we have submitted (excluding the part belonging to consortium members) railway offers worth over PLN 5 billion. Despite strong competition, we achieved a high bidding efficiency \u2013 almost 20%. So far, we have submitted the lowest price or the most advantageous offers worth almost a billion zlotys. We will observe the behavior of other companies and draw conclusions from subsequent decisions of railway tenders.<\/p>\n<p>Despite the decreasing construction market, in 2016 we increased the number of employees in the Group by over 500 people. At the end of 2016, the Budimex Group employed 5,708 people. Ambitious investment plans of key investors and the recovery in the infrastructure tender market, which has been visible for several months, encourage us to further increase the number of employees in 2017.  <\/p>\n<p>We expect an increase in sales dynamics in the coming quarters. Most of the road orders included in the current order book have entered the construction phase after the completion of design works. Increasing the scale of investments, in particular infrastructure investments, may cause even greater pressure on wage growth and a further decrease in the availability of qualified employees. In addition, in 2017 and subsequent years, we will have to face the risk of an increase in the prices of materials and subcontracting costs.<\/p>\n<p>Budimex is a company that enjoys great trust of the market and investors \u2013 both public and public  <br \/>  and private ones. Since 2011, Budimex has been included in the RESPECT Index, which includes companies conducting business in a responsible manner. In 2016, the Budimex Group paid PLN 116 million in income tax (CIT), 45% more than in the previous year. This places us at the forefront of the largest payers of this tax in the country.<\/p>\n<\/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 2016 and comparable data for 2015.<\/p>\n<p>\n            <u>Results of the reporting segments <strong>for 2016 <\/strong>(in PLN thousand):  <\/p>\n<p> <\/u>\n          <\/p>\n<table width=\"605\">\n<tbody>\n<tr>\n<td width=\"194\">\n<\/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>5 391 453<\/p>\n<\/td>\n<td width=\"84\">\n<p>349 586<\/p>\n<\/td>\n<td width=\"74\">\n<p>163 015<\/p>\n<\/td>\n<td width=\"66\">\n<p>(331 764)<\/p>\n<\/td>\n<td width=\"104\">\n<p>\n                    <strong>5 572 290<\/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>662 986<\/p>\n<\/td>\n<td width=\"84\">\n<p>81 908<\/p>\n<\/td>\n<td width=\"74\">\n<p>20 718<\/p>\n<\/td>\n<td width=\"66\">\n<p>(14 347)<\/p>\n<\/td>\n<td width=\"104\">\n<p>\n                    <strong>751 265<\/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>(11 680)<\/p>\n<\/td>\n<td width=\"84\">\n<p>(15 809)<\/p>\n<\/td>\n<td width=\"74\">\n<p>(5 235)<\/p>\n<\/td>\n<td width=\"66\">\n<p>53<\/p>\n<\/td>\n<td width=\"104\">\n<p>\n                    <strong>(32 671)<\/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>(184 238)<\/p>\n<\/td>\n<td width=\"84\">\n<p>(18 364)<\/p>\n<\/td>\n<td width=\"74\">\n<p>(5 657)<\/p>\n<\/td>\n<td width=\"66\">\n<p>9 493<\/p>\n<\/td>\n<td width=\"104\">\n<p>\n                    <strong>(198 766)<\/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>452 885<\/p>\n<\/td>\n<td width=\"84\">\n<p>46 735<\/p>\n<\/td>\n<td width=\"74\">\n<p>10 288<\/p>\n<\/td>\n<td width=\"66\">\n<p>(4 801)<\/p>\n<\/td>\n<td width=\"104\">\n<p>\n                    <strong>505 107<\/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>454 794<\/p>\n<\/td>\n<td width=\"84\">\n<p>51 023<\/p>\n<\/td>\n<td width=\"74\">\n<p>10 389<\/p>\n<\/td>\n<td width=\"66\">\n<p>(4 801)<\/p>\n<\/td>\n<td width=\"104\">\n<p>\n                    <strong>511 405<\/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>364 811<\/p>\n<\/td>\n<td width=\"84\">\n<p>41 285<\/p>\n<\/td>\n<td width=\"74\">\n<p>8 268<\/p>\n<\/td>\n<td width=\"66\">\n<p>(3 888)<\/p>\n<\/td>\n<td width=\"104\">\n<p>\n                    <strong>410 476<\/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>364 811<\/p>\n<\/td>\n<td width=\"84\">\n<p>41 285<\/p>\n<\/td>\n<td width=\"74\">\n<p>7 698<\/p>\n<\/td>\n<td width=\"66\">\n<p>(3 943)<\/p>\n<\/td>\n<td width=\"104\">\n<p>\n                    <strong>409 851<\/strong>\n                  <\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\n            <strong> <\/strong>\n          <\/p>\n<p>\n            <u>Results of the reporting segments <strong>for 2015 <\/strong>(in PLN thousand):  <\/u><br \/>\n            <strong>                               <\/strong>\n          <\/p>\n<table width=\"604\">\n<tbody>\n<tr>\n<td width=\"193\">\n<\/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>4 936 892<\/p>\n<\/td>\n<td width=\"83\">\n<p>292 599<\/p>\n<\/td>\n<td width=\"87\">\n<p>186 805<\/p>\n<\/td>\n<td width=\"66\">\n<p>(282 302)<\/p>\n<\/td>\n<td width=\"93\">\n<p>\n                    <strong>5 133 994<\/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>426 253<\/p>\n<\/td>\n<td width=\"83\">\n<p>65 381<\/p>\n<\/td>\n<td width=\"87\">\n<p>19 169<\/p>\n<\/td>\n<td width=\"66\">\n<p>(18 089)<\/p>\n<\/td>\n<td width=\"93\">\n<p>\n                    <strong>492 714<\/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>(11 129)<\/p>\n<\/td>\n<td width=\"83\">\n<p>(14 027)<\/p>\n<\/td>\n<td width=\"87\">\n<p>(4 631)<\/p>\n<\/td>\n<td width=\"66\">\n<p>45<\/p>\n<\/td>\n<td width=\"93\">\n<p>\n                    <strong>(29 742)<\/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>(177 090)<\/p>\n<\/td>\n<td width=\"83\">\n<p>(15 350)<\/p>\n<\/td>\n<td width=\"87\">\n<p>(5 217)<\/p>\n<\/td>\n<td width=\"66\">\n<p>7 576<\/p>\n<\/td>\n<td width=\"93\">\n<p>\n                    <strong>(190 081)<\/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>244 693<\/p>\n<\/td>\n<td width=\"83\">\n<p>46 690<\/p>\n<\/td>\n<td width=\"87\">\n<p>9 171<\/p>\n<\/td>\n<td width=\"66\">\n<p>(8 336)<\/p>\n<\/td>\n<td width=\"93\">\n<p>\n                    <strong>292 218<\/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>246 355<\/p>\n<\/td>\n<td width=\"83\">\n<p>51 801<\/p>\n<\/td>\n<td width=\"87\">\n<p>6 981<\/p>\n<\/td>\n<td width=\"66\">\n<p>(8 336)<\/p>\n<\/td>\n<td width=\"93\">\n<p>\n                    <strong>296 801<\/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>194 731<\/p>\n<\/td>\n<td width=\"83\">\n<p>41 820<\/p>\n<\/td>\n<td width=\"87\">\n<p>6 724<\/p>\n<\/td>\n<td width=\"66\">\n<p>(6 755)<\/p>\n<\/td>\n<td width=\"93\">\n<p>\n                    <strong>236 520<\/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>194 731<\/p>\n<\/td>\n<td width=\"83\">\n<p>41 820<\/p>\n<\/td>\n<td width=\"87\">\n<p>6 050<\/p>\n<\/td>\n<td width=\"66\">\n<p>(6 755)<\/p>\n<\/td>\n<td width=\"93\">\n<p>\n                    <strong>235 846<\/strong>\n                  <\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n                            <\/div>\n                                                                                                                                <\/div>\n    <\/div>\n<\/section>","protected":false},"excerpt":{"rendered":"<p>2016 was another very good year for the Budimex Group, in which Budimex SA achieved results placing the company in the first place of the largest construction companies in Poland. Despite a 14.4% drop in construction and assembly production, the Group increased sales by 8.5% and generated a record net profit of PLN 410 million. &#8230;<\/p>\n","protected":false},"featured_media":0,"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 - Dariusz Blocher on selected financial data from the consolidated financial statements of the Budimex Group for 2016 - 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 - Dariusz Blocher on selected financial data from the consolidated financial statements of the Budimex Group for 2016 - Budimex\" \/>\n<meta property=\"og:description\" content=\"2016 was another very good year for the Budimex Group, in which Budimex SA achieved results placing the company in the first place of the largest construction companies in Poland. 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