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Boryszew Group, one of Poland’s largest private industrial groups, has closed the first quarter of 2023. In the reporting period, the Group’s revenues amounted to PLN 1.7 billion. The Q1 2023 consolidated EBITDA was PLN 100 million, while the consolidated net profit grew by 42% year-to-year to reach PLN 48 million. Moreover, Boryszew improved operational efficiency.
The Automotive Segment continued the upward trend from the end of 2022, positively contributing to the Group’s consolidated performance. In the reporting period, the Segment generated revenues of PLN 473 million, up by 26% on Q1 2022, while the Segment’s EBITDA stood at PLN 8.5 million, up by PLN 10.2 million year-on-year.
“The successful restructuring of Boryszew Automotive (BAP) over the last several quarters combined with the ongoing electromobility trend in the automotive sector resulting in orders for components for electric vehicles have generally had a very positive impact on our Automotive Segment’s performance. In the first quarter only, we acquired a considerable new contract with the value of EUR 200 million. The improvement in the Automotive Segment balanced out the deterioration of results in the Metals Segment due to macroeconomic challenges,” commented Wojciech Kowalczyk, President of the Board and CEO of Boryszew S.A.
In the Metals Segment, the Q1 2023 revenues reached PLN 1,044 million (down by 8.5% on Q1 2022) while the Segment’s EBITDA amounted to PLN 88 million (down by 10% year-on-year). The Segment’s performance was impacted by the lower demand for steel due to the current market situation and competition from China.
In the first quarter of 2023, Boryszew Group succeeded in optimizing operational efficiency despite the challenging market environment. As a result, the Group’s net debt decreased, which led to a drop in the net debt to EBITDA ratio to 1.4.
“Our consolidated performance in the first quarter of this year reflects our ability to flexibly adapt to the changing market environment. Diversification of our activities and consistent implementation of our strategy allowed us to improve our key financial ratios. While keeping the revenues and EBITDA on a stable level, we posted an improvement in net result, working capital and debt,” said Radosław Szorc, CFO of Boryszew S.A.
In Q1 2023, the Automotive Segment accounted for 28% of the consolidated revenues while 62% of the Group’s revenues were generated by the Metals Segment. The remaining 10% came from the Chemicals Segment and Other.