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ERBUD Group: PLN 35 million of net profit after three quarters of 2020

  • The order portfolio collected by the Group at the end of the third quarter of 2020 amounted to PLN 2.44 billion and was 6% higher than in the corresponding period of 2019.
  • From 1 January to 2 November, the Group signed contracts worth PLN 1.95 billion.
  • At the end of September 2020, the Group recorded revenues of PLN 1.61 billion. The gross result on sales amounted to PLN 126.5 million and was 25% higher than in the corresponding period of 2019.
  • The EBIT result of the ERBUD Group was at a similar level as at the end of the third quarter of 2019 and amounted to PLN 46.6 million.
  • The net profit amounted to PLN 34.8 million and was higher by as much as 23% compared to the previous year.

At the end of September 2020, the ERBUD Group had PLN 299 million in revenues from foreign operations, 65% more than in the corresponding period of 2019. Revenues from the industrial segment amounted to nearly PLN 250 million and increased by 3%. The Group maintains a stable financial situation, the level of cash at the end of September 2020 amounted to PLN 181 million.

At the end of the third quarter of 2020, the ERBUD Group accumulated a stable and profitable portfolio of orders worth PLN 2.44 billion. For the current year, there are orders worth PLN 669 million, and PLN 1.77 billion for the subsequent years (2021-2023). The share of public procurement in the order backlog was 36%.

- Despite the restrictions related to the pandemic, we achieve great financial results, and we expect that our revenues at the end of 2020 will once again exceed PLN 2 billion. We are particularly pleased with the order portfolio at a high level of over PLN 2.4 billion. This year alone, we signed contracts worth nearly PLN 2 billion. This shows that the ERBUD Group wins good and profitable contracts even in difficult times - says Dariusz Grzeszczak, President of the Management Board of ERBUD S.A.

At the end of September 2020, the ERBUD Group generated revenues at a similar level as a year ago. The revenues from operations in Poland amounted to PLN 1.31 billion, while the Group generated almost PLN 300 million abroad. Revenues in the building construction segment amounted to PLN 1.04 billion, activities in engineering and road construction amounted to PLN 320 million. In the industrial segment, the Group achieved similar revenues as a year ago - PLN 160 million in Poland and PLN 87 million abroad.

Compared to the same period last year, the structure of revenues has changed significantly. The share of cubature construction in the country in the total revenues of the Group decreased from 67 to 52%. Road and engineering construction accounts for 20% of the Group's total revenues, compared to 14% a year ago. - We consistently implement our business model based on segmental and geographic diversification. We especially want to increase activity in construction and services for industry, which is why Radosław Górski joined our management board at the beginning of October, and will be responsible for the development of this segment in our Group - says President Dariusz Grzeszczak.

The ERBUD Group maintains a stable financial situation and has cash in the amount of PLN 181 million at its disposal. The company is gradually reducing the level of net debt, which after the third quarter amounts to PLN 29.5 million. At the end of 2019, the debt amounted to PLN 48.7 million, and in mid-2020 - PLN 37.8 million.

From the beginning of 2020, employment in the Group increased by 34 people and at the end of September it amounted to 2,509 employees.

- Despite the Covid-19 pandemic, construction works are continued, and new orders have appeared in the service for industry - says President Dariusz Grzeszczak. - We are closely monitoring the development of the pandemic situation in Poland and abroad. For now, we do not record a large number of infections among construction site workers - adds President Grzeszczak.

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