In 2017, Boryszew Group, one of the largest industrial groups in Poland, reached PLN 204 million of net profit (which corresponds to a 5.1% increase year-on-year) and PLN 6.3 billion of revenues, i.e. up by 11.5% on 2016.
Boryszew Group’s net profit in 2017 was higher by PLN 9.8 million as compared to the result obtained in the previous year. Boryszew Group’s EBITDA was PLN 469.2 million, and the operating profit was PLN 335.4 million.
“The good results for 2017 are the effect of the Company’s continued development strategy and the expansion of its product portfolio. The increased revenues were associated with improving the economic situation on the automotive market, better sales in the Aluminium Segment and the general improved microeconomic situation in Poland and in the euro zone,” says Piotr Szeliga, acting President of the Management Board of Boryszew S.A.
Results of Boryszew Group have been decreased by reserves made for risks associated with both pending and potential inspection procedures regarding VAT in metal processing companies. The reserve for liabilities was PLN 65 million, and the reserve for contingent liabilities was PLN 38 million. Companies of Boryszew Group, towards which decisions of tax authorities have been issued, announced that they will appeal against those decisions.
“Our companies within the Group, similarly to the State Treasury, are victims to tax offences, while in the authorities’ opinion, they are the suspects. Entities in the metal processing industries are accused of failure to exercise due diligence when verifying their business partners, while criteria of such due diligence have not been precisely defined anywhere. In practice, a company is expected to detect and predict all criminal actions of its business partners – that is: do something, for what tax authorities frequently require several years of work, and with the use of tools to which we – entrepreneurs – do not have access to,” Piotr Szeliga continues.
“It is important to note that tax authorities assess the past from a broader perspective, analyse specific situations taking into account the current state of knowledge, while very often it is the case that what the tax authority notices now was not possible to detect during day-to-day trading,” acting President of Boryszew S.A. adds.
Sales results and a development perspective
In 2017, Boryszew Group developed PLN 6.3 billion of sales revenues, as compared to PLN 5.6 billion in 2016.
“These satisfying results apply to all segments of our activity. The greatest increase of revenues in the Automotive Market was noted by Polish locations of the Mayflow Group, while the investment plan implemented in our Konin plant had a large impact on sales volumes in the Metal Segment; this investment plan allowed for achieving production capacities of rolled products of nearly 100 thousand tons a year,” acting President of Boryszew S.A. explains.
As part of its long-term development strategy, Boryszew Group will focus on strengthening its market position. The Group anticipates an increase in terms of its assets and profitability of its companies, including an increase of their value for shareholders in the long run. Short-term activities and development plans focus on the completion of investments carried out in the Group companies and maximisation of their effects, as well as on the continuation of property and organisational restructuring processes in connection with the dynamically changing market conditions.
Summary of results
A summary of consolidated financial results of Boryszew Group in 2017 (data in PLN million):
Boryszew Group has recorded a significant increase of its value for shareholders. The profit per one share increased from PLN 0.60 at the end of 2016 to PLN 0.80 as at 31 December 2017.