Pekabex had net profit of PLN 20.93 million, EBIT of PLN 34.42 million in Q2 2023

Pekabex reported PLN 20.93 million in consolidated net profit attributable to shareholders of the parent company in Q2 2023, compared to PLN 14.95 million in profit a year earlier, the company said.

Operating profit was PLN 34.42 million, compared to PLN 22.18 million profit a year earlier.

Consolidated sales revenues reached PLN 385.19 million in Q2 2023 vs. PLN 425.5 million a year earlier.

In 1H 2023, the company posted PLN 45.63 million in consolidated net profit attributable to shareholders of the parent company, compared to PLN 27.62 million in profit a year earlier, on sales revenue of PLN 772.29 million, compared to PLN 837.95 million a year earlier. EBITDA profit reached PLN 84.46 million against PLN 55.85 million profit in this terms a year earlier.

"The value of the group's net sales revenues in the first half of 2023 amounted to PLN 772,290 thousand, down by PLN 65,664 thousand, or 7.84%, compared to net revenues for the first half of 2022. The decrease in revenue was recorded mainly in the contract execution - prefabrication segment (a decrease of PLN 100,894 thousand i.e. 18.7% compared to H1 2022). The segment's operating result amounted to PLN 64,668 thousand (down by PLN 3,296 thousand i.e. 4.85% compared to H1 2023). The Group's other business segments recorded increases," according to the management report.

The Group's net return on sales at the end of June 2022 was 5.97%, 2.63 percentage points higher than the value of the ratio at the end of H1 2022. In the first half of 2023, the Group executed contracts whose costs were estimated based on 2022 material prices. The actual cost level was lower than assumed. Some of the risks for which the Group had set up provisions were also not realized, it was also stated.

"The situation in the construction industry is difficult. The economic downturn and geopolitical situation, as well as the high cost of financing and implementation of investments, the rising cost of wages, and the failure to mobilize funds from the National Reconstruction Fund, have had an impact on inhibiting investments in the sector. The Group is pursuing a strategy of segmental and geographic diversification of revenues, which allows it to optimize the use of the resources it already has while minimizing business risks. Such a strategy also enables stability of results and cash flow," the statement reported.

On a standalone basis, net profit in H1 2023 amounted to PLN 39.9 million, compared to PLN 4.98 million profit a year earlier.

Pekabex Group is a leading manufacturer of prefabricated structures in Poland. It has factories in Gdansk, Poznan, Warsaw and Bielsko-Biala. Domestically, it mainly executes contracts in the field of large-volume construction (e.g. production halls, warehouses, commercial buildings, railway stations, parking lots and office buildings) and engineering construction (e.g. bridges, tunnels). Exports are mainly in the area of modular housing construction directed primarily to Scandinavian countries. The company debuted on the WSE's main market in 2015; it is included in the sWIG80 index.