In the first half of 2022, the ERBUD increased its revenues by 38% y/y, to 1.78 billion, generating PLN 16.2 million of normalized operating profit. The engine of the ERBUD Group's income is services for industry, which in the last six months increased sales by 70%, to nearly PLN 285 million, generating an EBIT of PLN 12.4 million. The ERBUD Group continues to invest in strategic areas: construction in the RES area, services for industry and modular construction.
In the first half of the year, the ERBUD Group generated PLN 2.3 million of the normalized net result, compared to PLN 43.6 million a year earlier. The lower profitability is a consequence of the growing costs of implementation, especially affecting the construction of buildings, engineering and road construction, the structure of revenues for the period (higher share of revenues from less profitable business areas) as well as higher general costs related to investments in the key areas of the Group's operations. “We are consistently implementing the long-term business reconstruction plan of the ERBUD Group, which will allow us to take advantage of the so-called green transformation of the European economy. We invest in the development of activities in the field of renewable energy, modular construction based on ecological, sustainable renewable raw material, which is wood, and service activities for industry, with a high technology entry level. We are convinced that the success of the above-mentioned projects will significantly increase the value of the ERBUD Group for shareholders,” comments Dariusz Grzeszczak, Chairman of ERBUD.
The Chairman emphasizes that the current macroeconomic situation, negatively affecting the company's current results, nevertheless opens up new development opportunities for the Group.
“The changes on the European energy market not only confirm our conviction that it is the right move to go into the construction business in the field of renewable energy sources, but also encourage us to consider the possibility of accelerated development in this segment. Several months ago, when drafting our development plans in the field of renewable energy sources, we indicated that in the long term ONDE could become a producer of energy from RES based on the construction projects carried out in this area. We believe that the review of strategic options for renewable energy projects will allow the ONDE Management Board to choose the best development path, using the company's unique know-how and an attractive project portfolio,” adds Grzeszczak and announces that electricity from the first own farm will flow in the fourth quarter of this year.
The key tasks of the Group's team are the review of strategic options for renewable energy projects, the defense of profitability in segments particularly affected by increasing costs of energy and construction materials and the planned start of the modular construction with the use of prefabricated wood (MOD21). “We are continuing intensive negotiations with our business partners on the budgets and scopes of construction contracts fulfilled by the Group. In the modular construction business, as planned, we are carrying out work on launching a module factory, parallel to construction and assembly works, building the relevant team, recruiting and training the staff”, summarizes Dariusz Grzeszczak.