{"id":156255,"date":"2019-10-29T06:56:15","date_gmt":"2019-10-29T06:56:15","guid":{"rendered":"https:\/\/bdm-stg.mda.pl\/informacje-prasowe\/budimex-groups-results-after-three-quarters-of-2019\/"},"modified":"2024-06-07T12:09:39","modified_gmt":"2024-06-07T12:09:39","slug":"budimex-groups-results-after-three-quarters-of-2019","status":"publish","type":"press","link":"https:\/\/bdm-stg.mda.pl\/en\/press\/budimex-groups-results-after-three-quarters-of-2019\/","title":{"rendered":"Budimex Group’s results after three quarters of 2019"},"content":{"rendered":"\n
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29.10.2019<\/p>\n

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Budimex Group’s results after three quarters of 2019<\/h2>\n

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Share article<\/p>\n

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

\u25aa Construction and assembly production increased by\u00a09% after three quarters of 2019, reaching PLN 73 billion <\/strong> <\/p>\n

\u25aa The data of the Central Statistical Office indicate a\u00a0slight improvement in\u00a0the profitability of the largest entities<\/strong>: the gross profitability ratio in\u00a0the first half of 2019 amounted to\u00a01.4% compared to\u00a0-0.4% in\u00a0the first half of 2018. Smaller companies are benefiting from market growth<\/strong>, their gross profitability in\u00a0the first half of the year reached 10%<\/p>\n

\u25aa Despite the overall slight improvement in\u00a0profitability, the following months brought terminated contracts <\/strong>and a\u00a0further deterioration of the financial situation of some entities<\/p>\n<\/p>\n

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

\u25aa Sales after three quarters of 2019 were comparable year-on-year and reached PLN 5.38 billion <\/strong> <\/p>\n

\u25aa The gross profit <\/strong>margin of the Budimex Group amounted to\u00a04.0%. <\/strong>On\u00a0the other hand, in\u00a0the third quarter alone, profitability reached 4.9% <\/strong>m.in.\u00a0due to\u00a0the change in\u00a0the strategic support agreement <\/strong>(reduction of remuneration from 0.5% to\u00a00.33% of sales revenues) and a\u00a0one-off increase in\u00a0the result by\u00a0PLN 34.8 million<\/p>\n

\u25aa The gross profit margin in\u00a0the construction segment was relatively good <\/strong>and amounted to\u00a02.7% (compared to\u00a03.8% in\u00a0the corresponding period of 2018)<\/p>\n

\u25aa The real estate development segment achieved a\u00a0very good gross profit margin of 17.3% <\/strong> <\/p>\n

\u25aa Starting from July, we\u00a0started consolidating the results of the FBSerwis Group<\/strong> in\u00a0the services segment. In\u00a0the third quarter, the FBSerwis Group achieved PLN 131 million in\u00a0sales <\/strong>and PLN 17 million in\u00a0operating profit <\/strong><\/p>\n<\/p>\n

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

\u25aa At\u00a0the end of September, the Budimex Group\u2019s net cash amounted <\/strong>to\u00a0PLN 570 million <\/strong>and was close to\u00a0the level at\u00a0the end of the third quarter of the previous year<\/p>\n

\u25aa In\u00a0the third quarter, despite the expenditure on\u00a0the purchase of FBSerwis<\/strong>, the net cash balance improved by\u00a0PLN 306 million <\/strong>compared to\u00a0the end of the second quarter<\/p>\n

\u25aa Cash remains under pressure from delays on\u00a0the part of investors in\u00a0the approval and invoicing process <\/strong> <\/p>\n<\/p>\n

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

\u25aa Sales of the construction segment increased by\u00a01%, <\/strong>achieving a\u00a0slightly lower dynamics than the industry \u2013 we\u00a0continue to\u00a0focus on\u00a0building a\u00a0profitable order book <\/strong> <\/p>\n

\u25aa The gross profit margin <\/strong>of the construction part was 2.7%, well above the market benchmark <\/strong> <\/p>\n

\u25aa The order book of the <\/strong>Budimex Group remained at\u00a0a\u00a0high level of PLN 10.7 billion. <\/strong> <\/p>\n

\u25aa Thanks to\u00a0the signing of another railway contract <\/strong>on\u00a0the Vistula Bridge \u2013 Czechowice-Dziedzice \u2013 Zabrzeg line , we\u00a0have entered the group of leaders in\u00a0this area<\/strong>. Work in\u00a0the hydrotechnical segment is also attractive, where we\u00a0are successfully implementing, m.in others, a\u00a0flood control reservoir in\u00a0Racib\u00f3rz and a\u00a0post-industrial reservoir for KGHM<\/p>\n

\u25aa The pace of contracting in\u00a0the coming quarters may weaken <\/strong>due to\u00a0underestimated investor budgets and protracted tender processes<\/p>\n<\/p>\n

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

\u25aa During the first three quarters of the year, Budimex Nieruchomo\u015bci\u2019s clients signed 1,229 notarial deeds <\/strong> <\/p>\n

\u25aa The extension of the offer <\/strong>resulted in\u00a0high pre-sales of 1,286 apartments <\/strong> <\/p>\n

\u25aa The revenue of the real estate development segment increased by\u00a03% and amounted to\u00a0PLN 422 million, <\/strong>and the gross profit was PLN 73 million <\/strong>with a\u00a0high profitability of 17.3%<\/p>\n

\u25aa The current offer of Budimex Nieruchomo\u015bci is just over 1,700 apartments in\u00a05 locations <\/strong> <\/p>\n<\/p>\n

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

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\u25aa The situation of the Budimex Group is stable, <\/strong>and the high level of the order book <\/strong>allows for fully effective use of resources <\/strong>and secures the work front for the next few quarters<\/p>\n

\u25aa The average profitability of the portfolio is relatively good, <\/strong>and the implementation of most of the difficult contracts in\u00a0the area of infrastructure and general construction, signed a\u00a0few years ago, has been completed. The profitability of the energy segment remains under pressure from contracts in\u00a0Tur\u00f3w and Vilnius <\/strong> <\/p>\n

\u25aa The identified losses on\u00a0projects in\u00a0progress are included in\u00a0the results, <\/strong>therefore we\u00a0do\u00a0not expect significant changes in\u00a0the profitability of the portfolio. We\u00a0have also filed the first court claims for an excessive increase in\u00a0prices <\/strong>on\u00a0the basis of the \u201crebus sic stantibus\u201d clause<\/p>\n

\u25aa The prices of petroleum materials, steel and aggregates are similar to\u00a0the level of the previous year<\/strong>. We\u00a0continue to\u00a0observe an increase in\u00a0the costs of labor and subcontracting services <\/strong> <\/p>\n

\u25aa We\u00a0are constantly observing aggressive behaviour of the competition <\/strong>\u2013 bold offers submitted by\u00a0entities that often do\u00a0not have local experience in\u00a0implementation are not verified by\u00a0the contracting authorities. Contract conditions are not improving<\/strong>, so balancing the risks between contractors and contracting authorities <\/strong> remains a\u00a0challenge for the coming quarters <\/p>\n

\u25aa The situation on\u00a0the labour market is improving, staff shortages in\u00a0the industry are lower<\/strong>. The availability of qualified employees in\u00a0the railway area<\/strong> remains a\u00a0problem<\/p>\n<\/p><\/p><\/div>\n <\/div>\n

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The sales of the Budimex Group after three quarters of 2019 are comparable year-on-year. The gross profit margin of the Budimex Group amounted to 4.0%. The implementation of most of the difficult contracts signed a few years ago has been completed.<\/p>\n","protected":false},"featured_media":152556,"parent":0,"template":"","press_type":[790,537],"acf":[],"yoast_head":"\nBudimex Group's results after three quarters 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=\"Budimex Group's results after three quarters of 2019 - Budimex\" \/>\n<meta property=\"og:description\" content=\"The sales of the Budimex Group after three quarters of 2019 are comparable year-on-year. The gross profit margin of the Budimex Group amounted to 4.0%. 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