News from SPECTIS
News
WSE-listed construction companies report lower profits as of Q1 2023
13 Jun 2023
19 construction groups listed on the Warsaw Stock Exchange reported nominal revenue growth of 16% y-o-y over the past four quarters. 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 PLN 170m. 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 – June 2023", the latest monthly report by Spectis, reveal that the aggregate revenue of 19 construction groups whose shares are listed on the WSE totalled PLN 32.5bn in Q2 2022-Q1 2023, compared to the revenue of PLN 28.1bn registered a year earlier, up by nearly 16% in nominal terms. An increase 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 only PLN 170m, as compared with PLN 1.52bn a year earlier.
The net financial result generated by the construction companies translated into a net return on sales of just 0.5% compared with 5.4% 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 21.1% (compared to 24.4% reported in the previous year) and 5.8% (down from 9% last year), respectively.
Net profit posted by WSE-listed construction companies was largely driven by strong profitability recorded by the Budimex Group. The sector’s strong financial performance was also boosted by results posted by Torpol and Polimex-Mostostal, each of which reported strong net profit increases.
From among property developers listed on the WSE, Dom Development, MLP Group, Atal, Develia, and Warimpex posted the highest net profits in the past four quarters. In terms of value, the strongest improvement in profits was registered by Warimpex, Develia, and Dom Development.
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 more than 60% of the profits generated by all the suppliers. Robust profit figures in excess of PLN 50m were also delivered by Rawlplug, TIM, Selena, Pekabex, Bowim, and Ferro.
For more information about quarterly results of market players, see our monthly reports "Construction market in Poland".
Long-term financial results, ongoing contracts, and market strategies of the leading contractors can be found in the report entitled "Construction companies in Poland 2023-2028".
Sales figures, ongoing projects, and market strategies of the leading property developers can be found in the report entitled "Residential property developers in Poland 2023-2028".
Request free samples of our reports:
info@spectis.pl