Budimex recorded PLN 56.38 million of consolidated net profit from continuing operations, attributable to shareholders of the parent company in Q1 2022 compared to PLN 42.48 million of profit a year earlier, the company announced in the report. The total net profit from continuing operations amounted to PLN 59.46 million compared to PLN 46.39 million.
The operating profit amounted to PLN 57.44 million versus PLN 62.82 million profit a year earlier.
Consolidated sales revenues amounted to PLN 1,598.99 million in Q1 2022 compared to PLN 1,244.79 million a year earlier.
In the first quarter of 2022, the Budimex Group recorded a significant increase in sales revenues, primarily in the construction part. A high order portfolio and relatively good weather conditions allowed the construction segment revenue to increase by 21.7% compared to the corresponding period of the previous year. significant road contracts implemented in the ‘design and build’ formula will enter the implementation phase this year, which in the coming quarters will translate into an increase in sales in this area. construction, according to its report.
The war in Ukraine, which started on February 24, 2022, has no direct impact on the activities of the Budimex Group. The Group does not execute contracts in Ukraine, Russia and Belarus. The Budimex Group companies also do not have a significant exposure to services provided by entities with Eastern capital. Nevertheless, the reduction of imports of raw materials used in the construction sector, including iron ore, and fluctuations in oil prices have a significant impact on the functioning of the construction sector. Moreover, an outflow of workers from Ukraine has been observed in the sector, while the scale of this phenomenon and the impact on the activity of the industry is currently difficult to assess, the company announced.
The increase in the prices of key assortments has an impact on the profitability of long-term contracts, especially those at the initial stage of implementation. The increase in steel prices may also have a direct impact on the profitability of contracts conducted by Mostostal Kraków SA, the company stated.
The cash situation of the Budimex Group is stable and allows for uninterrupted operation in the coming quarters. The series of interest rate increases observed in the last quarter resulted in an increase in the average interest rate on bank deposits. As a result, the Budimex Group recorded a significant improvement in the result on financial activities compared to the same period last year. This trend is expected to continue in the coming quarters of 2022. There were no other significant events in the period after March 31, 2022 until the preparation of the condensed consolidated financial statements, the company indicated.
On a standalone basis, the net profit from continuing operations in Q1 2022 amounted to PLN 51.63 million compared to PLN 220.29 million profit a year earlier.
Budimex has been listed on the Warsaw Stock Exchange since 1995. Its strategic investor is the Spanish company Ferrovial. In 2021, it had PLN 7.91 billion in consolidated revenues.
Source: Budimex and ISBnews
Photo: Gocławska II – Budimex
