WSE-listed construction companies report lower profits as of Q3 2022
12 Dec 2022
19 construction groups listed on the WSE reported nominal revenue growth of 25% y-o-y over the past four quarters, which was largely driven by a continued hike in the prices of labour and building materials. However, the positive impact of previous one-off events came to an end and caused the net profit of the said group of companies to fall to just under PLN 1bn. Despite reporting an aggregate net profit, profit margins reported by the listed construction companies are still worse that the figures delivered by developers and suppliers of building materials and construction equipment.
The findings of "Construction market in Poland – December 2022", the latest monthly report by research company Spectis, reveal that the aggregate revenue of 19 construction groups whose shares are listed on the WSE totalled PLN 31.4bn in Q4 2021-Q3 2022, compared to the revenue of PLN 25.1bn registered a year earlier, up by nearly 25% in nominal terms. Such a huge jump in revenue was mostly caused by soaring prices of construction materials and labour costs. The aggregate net profit of the analysed companies in the period under review amounted to nearly PLN 1bn, as compared with PLN 1.34bn a year earlier.
The net financial result generated by the construction companies translated into a net return on sales of 3.2% compared with 5.3% a year earlier. Profitability of the other two categories of companies, i.e. property developers and suppliers of building materials and construction equipment, was much higher as it stood at 27.6% (major improvement over 16.8% reported in the previous year) and 7.6% (a slight drop from 8.7% last year), respectively.
Net profit posted by WSE-listed construction companies was largely driven by strong profitability recorded by the Budimex Group, which is the largest construction company in Poland and contributes over half of the aggregate profit. The sector’s strong financial performance was also boosted by results posted by Rafako, Torpol, Unibep, and Dekpol, each of which reported strong net profit increases.
From among property developers listed on the WSE, MLP Group, Atal, Dom Development, Capital Park, and Echo Investment posted the highest net profits in the past four quarters. In terms of value, the strongest improvement in profits was registered by MLP Group, Capital Park, Develia, Atal, Echo investment, and Warimpex.
As far as producers and suppliers of building materials and construction equipment are concerned, in the past four quarters, the groups of Kety and Stalprodukt recorded the highest net financial profits. They accounted for over half of the profits generated by all the suppliers. Robust profit figures in excess of PLN 100m were also delivered by Rawlplug, Selena, Bowim, Stalprofil, and ZPUE.
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