Boryszew Group: Consolidated EBITDA up by 78% year-on-year in Q2 2022

Boryszew Group, one of Poland's largest private industrial groups, closed the second quarter of 2022 with strong results. In the reported period, the Group's EBITDA soar by 78% to reach PLN 172 million, while the adjusted EBITDA stood at PLN 135 million, up by 39% year-on-year. In Q2 2022, the Group generated consolidated revenues of PLN 1.8 billion, up by 14% on Q2 2021.

"I am very pleased with the results our Group generatedlast quarter. We have once again proved that Boryszew enjoys substantial competitive advantages helping us remain strong in the volatile market environment. At the same time, we are also benefiting from the bull market in non-ferrous metals and steel, which has boosted our EBITDA margin to 10.1%. We continue to face challenges in the Automotive Segment, but there are clear signs that global car manufacturers are busily preparing to get the automotive sector back on track, especially by pursuing with or even intensifying their investment processes, especially in the very promising area of electric cars. We are fully prepared for the widely-expected market recovery in this sector," said Wojciech Kowalczyk, President of the Board and CEO of Boryszew S.A.

In Q2 2022, the Metals Segment generated revenue of PLN 1.2 billion (65% of the Group's revenues, while the Automotive Segment's revenue amounted to PLN 419 million (23%). With revenue of PLN 214 million, the Chemicals Segment and Other accounted for the remaining 12%.

Metals Segment

In the reported period, Boryszew Group's revenue in the Metals Segment grew despite falling metal prices on the LME. High demand for steel products led to an improvement in the Segment's EBITDA of 22.1% quarter-to-quarter to PLN 121 million, while the Segment's revenue increased by 5.1% quarter-to-quarter to PLN 1,200 million.

Automotive Segment

In Q2 2022, Automotive Segment's EBITDA reached PLN 7.9 million. Despite challenges due to lower volumes of orders and limited availability of semiconductors and wire harnesses used for car manufacturing, the Group's revenue in this Segment grew by 11.8% quarter-to-quarter to reach PLN 419 million.

Chemicals Segment

The Chemicals Segment's revenues remained stable at PLN 80 million in the reported period, while the Segment's EBITDA returned to the level of Q2 2021 like-for-like (excluding the result of Elana PET, which was sold last year). The Segment's performance was impacted by expansion into new markets. Q2 2022 also saw the introduction of AluClean ERG, a new range of specialised aluminium cleaning liquids for industrial applications.

At the end of the second quarter, Boryszew Group unveiled its new business strategy for the years 2022-2026. The new strategy set out new directions for future development in the most prospective areas of operations and defined financial projections for the coming years and for the Group's energy security.

"We are well prepared to face the challenges that lie ahead for the power sector in Poland. We have already introduced changes to the working hours in our plants, we are also flexible in taking decisions on purchase or sale of energy through our specialized energy trading branch (Boryszew Energy). In the longer term, we will strive for even greater independence - to this end, we are actively participating in the green energy transition," Boryszew CEO Wojciech Kowalczyk added.