Boryszew : Stable results for Boryszew Group after Q1 2018

In Q1 2018, Boryszew Group, one of the largest industrial groups in Poland, recorded PLN 5.1 million of net profit and PLN 1.62 billion of sales revenue. Results in the Metals Segment significantly improved on the back of increased sales volumes.

Q1 2018 results

In Q1 2018, Boryszew Group generated PLN 1.62 billion of sales revenues, compared to PLN 1.60 billion the year before. The largest contributor to the Group's revenues was the Metals Segment, which, with the result of PLN 978.3 million at the end of Q1 2018, accounted for over 60% of the Group's total turnover (58.6% in Q1 2017). The second most important was the Automotive Segment, which generated stable results over the same period, reaching PLN 504.7 million of sales revenue. The remaining segments recorded sales on a par with the last year's figures.

- 'The 2017 results published recently showed that the Group has been successfully implementing its adopted development strategy. In the first quarter of 2018, we continued down this way and were building the growth potential for the periods to come. In the first three months, we recorded an increase in sales revenue on the back of the growth in sales volumes to 85.7 tonnes on last year's 81.6 tonnes' - said Piotr Szeliga, acting President of the Management Board of Boryszew S.A.

The consolidated EBITDA of Boryszew totalled PLN 110.7 million, with the Metals Segment having the largest share in it of more than half (PLN 67.7 million). At the operating result level, the Group generated PLN 75.1 million. In net terms, the Group earned PLN 51.3 million over that period.

- 'The lower result achieved in the first quarter of this year is, first and foremost, due to macroeconomic factors, mainly the strengthening of the PLN/USD exchange rate and the growing prices of raw materials, which were particularly noticeable in the Automotive Segment. We are a global company, with over 60% of revenues generated outside Poland, which is why the strengthening of the Polish currency has had a negative impact on Boryszew Group's results. The decrease in the Q1 result on the previous year was also the effect of a part of the indemnity paid in the first quarter of 2017 under the insurance policy of the Prenzlau plant' - commented acting President of Boryszew S.A.

In Q1 2018, Boryszew Group allocated PLN 96.8 million for investments in tangible and financial assets, which was financed with own funds and additional debt. The debt ratio (net debt / EBITDA) equals 2.3 (that is, a drop from 2.5 in the corresponding period of the previous year) and remains on the safe level.

Growth perspectives

Key for Boryszew Group's results is the macroeconomic situation in Europe, where the Group generates more than 90% of its turnover. After Q1 2018, the business environment for Boryszew Group's operations in the EU countries, including Poland, were similar to those in the corresponding period of the previous year,

- 'As part of our long-term development strategy, we will continue to focus on bolstering our market position. The Group expects the assets to grow and the profitability of the companies to improve, and thus the value for shareholders to grow in the long term. Both short-term activities and development plans focus on completion of investments carried out in Boryszew Group companies and maximisation of their effects, as well as continuation of asset and organisational restructuring processes in connection with dynamically changing market conditions' - added Piotr Szeliga, acting President of Boryszew S.A.