The construction tycoon ended the nine months of 2022 with a 29% y/y increase in revenue to PLN 2.8 billion, generating nearly PLN 51 million in normalised EBITDA and nearly PLN 27 million in normalised operating profit. The Group’s most profitable business segment is industrial services, for which EBIT increased by more than half, with a 40% growth in sales.
In the nine months of this year, the ERBUD Group generated PLN 11.6 million in normalised net income, compared to PLN 60.2 million a year earlier. The Group’s lower profitability was determined by unfavourable market conditions, led by rising implementation and financing costs, as well as expenses related to business development in strategic areas: RES development and modular construction.
Volume construction, representing more than half of the Group’s revenues, contributed more than PLN 1.5 billion in revenues in the nine months of 2022, an increase of 66% compared to the same period in 2021. The segment, despite consistently difficult market conditions, has positive profitability and its Polish unit generated PLN 12.9 million EBIT in the relevant period.
However, the Group’s most lucrative part of its business remains the industrial services segment, which is developed both domestically and internationally. Its revenues improved in 2022 to PLN 443 million (PLN 318 million a year earlier) and its operating result increased from PLN 10 million after nine months of 2021 to more than PLN 15 million today.
Dariusz Grzeszczak, President of ERBUD, emphasises that the challenging market conditions and macroeconomic environment, burdening the Group’s current performance, do not affect its strategic long-term targets. – We are consistently following the chosen path of the Group’s development and its business transformation into one of Europe’s leaders in modern construction. We are focusing on building a business based on unique competences and knowledge, we are investing in the development of our RES activities, and in a few weeks’ time we will commission the MOD21 module factory, which is the heart of our new corporate segment. We are committed to the long-term growth of the Group’s value for Shareholders, and the events of recent months only reinforce our conviction that the strategic turnaround of the ERBUD Group offers the potential to increase the scale of our operations – remarks Dariusz Grzeszczak, President of ERBUD.