Net profit of the Boryszew Group exceeds PLN 233 million after Q3 2017

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For the first three quarters of 2017, Boryszew, one of the largest industrial groups in Poland, recorded a net profit of over PLN 233 million, representing a year-to-year increase of 33 percent.

For the first nine months of 2017, the Boryszew Group produced a revenue in excess of PLN 4.69 billion, a figure eleven percent higher than the one recorded in the previous year. EBITDA reached the level of PLN 393 million after the first three quarters of 2017, which represented an increase of 15 percent in relation to the corresponding period in 2016.

Jarosław Michniuk, President of the Management Board of Boryszew S.A. stated that "A consistent increase in an operating profit is of key importance, and added that The improvement results from our development projects, owing to which the production capacities and unit margins have grown, and from the successful restructuring process in the Automotive Segment in both the Maflow Group and Boryszew Automotive Plastics. Currently, our attention is focused on the development of innovation in the Group and on the works aimed at consolidating the R&D area." 

Increase recorded by respective segments

The most noticeable year-to-year increase in revenue produced by Boryszew was recorded in the Metals Segment, reaching 17 percent, which translated into PLN 2.83 billion. The biggest increase, expressed as a percentage, i.e. 22 percent, was observed by NPA Skawina, a branch of Boryszew, and it resulted from higher sales of the majority of wire rod product mix. In the second most important segment for the Group, the Automotive Segment, revenue increased by 5 percent year-to-year and totalled PLN 1.51 billion.

Jarosław Michniuk, President of Boryszew, explained that "An increase in revenue in the Automotive Segment can be attributed to the acquisition of new contracts, mainly by the Maflow Group. The revenue growth in the Metals Segment was influenced by rises in the prices of metals on the London Metal Exchange and larger sales volumes."

After the first three quarters of 2017, EBITDA earned by the Automotive Segment reached the level of PLN 149 million, thus improving the result recorded in the previous year by 48 percent. The situation in the Metals Segment was also better – EBITDA totalled PLN 216 million and was 10 percent higher than the figure recorded for the first nine months of 2016.

Jarosław Michniuk, President of Boryszew, commented that "The Automotive Segment was the main contributor to the improvement in profitability, as its EBITDA increased by 48 percent, whereas the highest increase in terms of percentage was recorded by the Chemistry Segment (77 percent)." 

International situation

Over the first nine months of 2017, the average prices of four metals, which are basic for the Boryszew Group, increased significantly, i.e. aluminium (by 23 percent), copper (by 26 percent), lead (by 27 percent) and zinc (by 42 percent).

For the Automotive Segment, accounting for more than 30 percent of the turnover of the Boryszew Group, a growth in the sales of cars was important. According to the data provided by ACEA, over the first three quarters of 2017, the European passenger car market grew by 3.7 percent in comparison with the corresponding period of 2016. After the first three quarters of 2017, the Volkswagen Group, which is the key account of Boryszew in the Automotive Segment, recorded a year-to-year increase in car sales in Europe of 2.4 percent.


  Financial results IIIQ

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