Boryszew Group improves performance and working capital management efficiency

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In H1 2019, Boryszew Group generated consolidated revenues of PLN 3 211 million, with a net result of PLN 73 million and a consolidated EBITDA of PLN 229 million. Boryszew’s performance improved significantly over the last two quarters. The Group recorded an EBITDA growth of PLN 49 million (up by 54% in Q2 2019 v. Q1 2019). The net profit increased by more than 100% between the two quarters of H1 2019 – from PLN 24 million in Q1 2019 to PLN 49 million in Q2 2019. Simultaneously, Boryszew considerably improved working capital management efficiency.

One of the most significant events in Q2 2019 was the integration of Alchemia Group, comprising 6 steel manufacturing plants, into Boryszew Group. Despite the investment and financial outlays incurred for the Group’s consolidation with Alchemia and Impexmetal, Boryszew maintained a stable level of financial debt. In Q2 2019, the net debt / EBITDA ratio reached 3.1 and was only marginally higher than in Q1 2019 when it stood at 3.0.

- At the end of the previous year, we announced concerted efforts to improve the efficiency of asset management in our plants. As a result of these efforts, we managed to reduce the net working capital, among others by reducing the receivables by 17% – said Piotr Lisiecki, President of the Management Board and CEO of Boryszew S.A. - The consolidation of Alchemia Group from Q2 2019 had a limited impact on the results of Boryszew Group in H1 2019. Currently, we are working to achieve full synergy of all our plants. The effects of this work will be visible in the subsequent quarters – Piotr Lisiecki added.

Moreover, Boryszew Group considerably decreased its net working capital. For Boryszew Group as a whole, it fell by nearly 15% quarter-on-quarter, while in Alchemia it increased by 3% in the reporting period.

In particular, Boryszew Group markedly improved the results in the Automotive Segment – mainly due to better work organisation and lower production costs. In Q2 2019, the Segment’s EBITDA grew by nearly 60% on Q1 2019.

- In the Automotive Segment, we improved production process management and substantially reduced the cost of poor quality (CoPQ), including the level of “scrap”. In addition to winning new nominations, we are working on taking over new projects from our competitors, which will allow us to increase the Segment’s revenues in a short time – Piotr Lisiecki commented.

In H1 2019, Boryszew Group spent PLN 89 million on investment projects, mainly in the Metals Segment (PLN 66 million) and the Automotive Segment (PLN 22 million). In the coming periods, the Group plans to implement further innovative projects, which will result in, among others, development of the product portfolio in the Metals Segment, from the wire rod made of high-strength aluminium alloys in NPA Skawina to the innovative aluminium alloy with high magnesium content in Aluminium Konin, to the copper alloy with a new standard of geometric quality in Walcownia Metali “Dziedzice”.

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