In 2018, Boryszew Group generated consolidated revenues of PLN 6.1 billion, with the net profit reaching PLN 141 million. The Group’s consolidated EBITDA was PLN 379 million. At PLN 277 million, the largest share in EBITDA was posted by the Metals Segment, which also recorded the largest revenues of PLN 3.7 billion.
Boryszew Group’s operations are divided into three segments operating in very different markets. This makes the Group more resistant to changes in its immediate environment as the effects of an unfavourable situation in one of the Group’s segments are compensated with results of the other business areas.
In FY 2018, the best results were generated by the Metals Segment whose revenues reached PLN 3.7 billion with an EBITDA of PLN 277 million. Impexmetal S.A. recorded an increase of over 30% in operating profit, further strengthening its market position, similarly to Walcownia Metali Dziedzice and Baterpol, whose operating profits grew by 20%.
“Our consolidated EBITDA grew on the back of higher sales volumes and the improved cost discipline, the growth being mainly visible in the Aluminium Konin plant. We are gradually increasing production capacity in our factories in the Metals Segment. At our plant in Konin, we are currently launching a CAPEX programme for the years 2019–2022 worth PLN 430 million. It provides for the extension of the Foundry and the Rolling Mill Departments, which will increase our production capacities in the area of ingots and rolled products,” said Piotr Lisiecki, the CEO of Boryszew S.A.
In 2018, the Automotive Segment was negatively impacted by changes in the global market environment. September saw a significant decline in car production, which remained at a significantly lower level until the end of December. This was due to the introduction of a new test procedure to measure fuel consumption and CO2 and other pollutant emissions of new cars (Worldwide Harmonised Light Vehicle Test Procedure or WLTP) required for obtaining official approvals.
“The impact of WLTP on the Group’s revenues and operational performance throughout 2018 was significant. The effect of a decline in orders due to the implementation of the new test procedures will still be visible in subsequent periods, but we are taking steps to minimise their impact on Boryszew Group’s results. We are optimistic about the future. In particular, the development of the electric vehicles segment looks very promising for us. We continue to invest in developing new products, diversify our client portfolio and secure new nominations on which our operations in this segment are based,” Boryszew CEO Piotr Lisiecki added.
Boryszew Automotive Plastics and Maflow acquired new nominations worth over EUR 388 million, which will be carried out until 2028. Continuous development is crucial for the Group, as evidenced by its intensive R&D activities. Currently, Maflow is the only company in the world using 3D scanning technology in combination with bending machines. The aim of this procedure is to replace the complicated work of the operator with automatic adjustment of the machine parameters after scanning the product. This will shorten the changeover time by 40 minutes and reduce machine set-up waste after changeover by 50%. In cooperation with the Fraunhofer Institute, Maflow Group developed a laser welding technology for the components of its products. In the future, the achieved process parameters will enable the use of a 10 times faster technology than currently used, reducing manufacturing costs and improving product quality.