Boryszew S A : Good start into the year for Boryszew Group

Boryszew Group, one of the largest private industrial groups in Poland, has summed up Q1 2022. At PLN 1.7 billion, the Group's revenues grew in the reported period by over 17% year-on-year, while the Group's EBITDA increased by 9%, reaching PLN 100 million. Moreover, the Group significantly reduced its net debt ratio, which dropped to 1.3 in the first three months of 2022 from 2.6 in the first quarter of last year.

The first quarter of 2022, due to the war in Ukraine, once again showed that Boryszew's biggest strength is the diversity of the sectors in which the Group's companies operate. Strong demand on the metals market in Poland allowed the Group to minimise the negative impact of the temporary freeze of production in the automotive industry caused by the war.

Metals Segment

With the Metals Segment accounting for 67% of Boryszew's total sales revenues, the Group benefits strongly from the recovery in this sector of the European industry. Prosperity on the steel and non-ferrous metals market continues to translate into the positive results of the Company.

"Aluminium-alloy wire rod is used in the production of cables, wires and cords. Especially in the segment of overhead wires and cables, we are observing a steady rise in demand by several percent. What is important, our plant NPA Skawina is the only manufacturer of this type of aluminium products in Poland. What's more, very strong performance was reported by WM "Dziedzice" and Baterpol. The situation on the steel market also improved considerably, with a significant rise in the number of orders as well as in margins. The economic downturn in China and another lockdown in this country led to a 8% drop in the production of Chinese steel products, leaving a gap in supply that had to be filled," said Wojciech Kowalczyk, President of the Board and CEO of Boryszew S.A.

Consequently, in the reported period the Metals Segment's EBITDA grew by almost 90% compared to Q1 2021 and amounted to PLN 99 million, while the Segment's revenues increased by 26% and reached PLN 1.1 billion. With the exception of Hutmen, which ceased operations, all the other Boryszew companies from the Metals Segment were responsible for the year-on-year rise in revenue and EBITDA.

Automotive Segment

In Q1 2022, the Automotive Segment, which accounted for 22% of Boryszew Group's total revenues in the reported period, generated revenues of PLN 375 million, while the Segment's EBITDA, due to temporary closures of OEMs' plants, dipped to a small loss of less than PLN 2 million.

"In the following quarters we are expecting a significant improvement in the Automotive Segment. Demand for new cars is huge, while according to ACEA data, the passenger car market in Europe decreased by 10.6% compared to the same period of the previous year. The decline is mainly due to the war in Ukraine, which blocked the production of wiring harnesses, which in turn led to a halt in the production of cars in Germany, the Czech Republic and Poland. We are preparing for increased car production, which should start in the coming quarters. Currently, we are working on process automation in our automotive plants to prepare them for the production of components for electric vehicles," Boryszew CEO Wojciech Kowalczyk added.

Earlier this month, on 17 May, Boryszew Group unveiled its new business strategy for 2022-2026, in which the directions of further business development in the most prospective areas of operations along with financial projections for the coming years were presented.