Boryszew Group’s FY 2019 consolidated revenues reached PLN 6.3 billion, with the FY 2019 consolidated EBITDA of PLN 414 million. Compared to FY 2018, the Company’s revenues and EBITDA were up by 3% and more than 9%, respectively. The biggest growth was recorded by the Metals Segment, which increased its revenues by 9% and its EBITDA by 18%. At PLN (-)99 million, the net result was impacted by the net effect of write-downs made.
In 2019, Boryszew Group’s consolidated revenues grew by PLN 160 million while its EBITDA increased by more than PLN 35 million. The Group’s consolidated net result was negatively impacted by the goodwill write-down of PLN 163 million on the acquisition of Alchemia Group, which in no way affected the Group’s operating activities and financial liquidity.
“The Group’s results were positively influenced by the strong performance of the Metals Segment. The R&D investment activity pursued in the segment produced a rise in revenues to PLN 4 billion and in EBITDA to PLN 326 million. The segment’s product offering was significantly expanded thanks to the launch of Europe’s most modern production line for premium-quality drawn rods and copper tubes at WM “Dziedzice” and the development of innovative low-loss overhead power transmission cables and conductors now produced at NPA Skawina,” said Piotr Lisiecki, President of the Board and CEO of Boryszew S.A.
Throughout 2019, the Group continuously improved its efficiency ratios.
“As we announced at the end of 2018, throughout the entire year 2019 we consistently undertook steps to improve the efficiency of working capital management in the Group’s plants. As at the end of 2019, our efficiency gains exceeded PLN 140 million as our actions produced the expected results,” Boryszew CEO Piotr Lisiecki added.
The year 2019 also brought a big change in Boryszew’s organizational structure. Delisting of Alchemia S.A. and Impexmetal S.A. and consolidation of the former into Boryszew Group led to the expansion of the Group’s offer with products from the Steel Segment. Moreover, on 27 November 2019 Boryszew signed a preliminary conditional sale and purchase agreement of Impexmetal Aluminium Konin shares with Swedish company Gränges AB. Closing of the transaction is scheduled for H2 2020. As a result, Boryszew Group will be able to further improve its financial ratios and continue to develop all its segments.
“We decided to sell the assets of Impexmetal Aluminium Konin because we obtained a very attractive offer from Gränges AB. The sale of the company will be beneficial to both parties to the transaction. Due to the COVID-19 pandemic, however, the process of obtaining the regulatory approvals from the relevant competition authorities has taken longer than expected, but the transaction itself is in no risk whatsoever,” President and CEO Piotr Lisiecki commented.
At PLN 1.8 billion, the FY 2019 revenues of the Automotive Segment companies remained solid. In 2019, they acquired nominations for projects valued at more than PLN 260 million, of which PLN 230 million were for Maflow Group. Maflow Group’s FY 2018 EBITDA improved by more than PLN 32 million on FY 2018.
“Due to the unsatisfactory performance of BAP Group, together with our main Client – VW Group, we are discussing measures to be implemented, and the conditions thereof, that will improve the Group’s efficiency and enable its further development. What we aim for is a similar improvement to the one we achieved in Maflow Group,” President Piotr Lisiecki stated.
In FY 2019, the Chemicals Segment recorded weaker performance. The segment’s revenues were PLN 253 million with the EBITDA of PLN 12.5 million.
“In 2020, we expect the results of the Chemicals Segment to markedly improve due to the COVID-19 pandemic. Earlier this year, we launched the production of a new product – the disinfectant “ERG CleanSkin” – at Boryszew ERG. As in the current situation it is a first-need product, right at the start of the epidemic we decided to quickly adapt our production lines to its production. This has allowed us to maintain high employment and production levels at the plant,” Piotr Lisiecki explained.
Thanks to its highly diversified product offer, Boryszew Group maintains strong production levels in the unfavourable market environment.