Budimex is increasing its revenues and betting on rail
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Budimex, the unchanging leader of the Polish construction industry, in 2019 increased its revenues by 2.5% year on year, with a net profit of PLN 226 m. The company’s order portfolio at the end of last year amounted to PLN 10.8bn, of which a record PLN 3.6 bn were contracts in the railway segment.
Higher revenues, lower profit
Budimex achieved a net profit of PLN 226 m last year attributable to shareholders of the parent company, compared to PLN 305.4 m in 2018, the company reported. Net revenues from sales of products and services as well as goods and materials amounted to PLN 7,569.66 m, compared to PLN 7,387.14 m a year earlier, which means a 2.5% y-o-y increase.
Record share of railways in the portfolio
The Group completed 2019 with a portfolio of orders worth 10.8 bn, of which a record PLN 3.6 bn are contracts in the railway segment. This situation prompts the company to decide to increase employment and make further capital investments in this area, Budimex informed, noting, however, that the availability of qualified employees specialising in the railway sector remains a problem.
Last year, the company signed agreements with a total value of PLN 7.5 bn, against PLN 6.6 bn in 2018. Moreover, since the beginning of 2020, the value of contracts signed by Budimex and the cheapest bids submitted is already approx. In addition, since the beginning of 2020, the value of contracts signed by Budimex and the cheapest bids submitted is already about PLN 3 bn.
A successful year for the developer segment
In 2019, the Group’s real estate development segment, i.e. Budimex Nieruchomosci, pre-sold 1,655 flats and sold 1,534 units to a notary public, while the year before it recorded 1,208 pre-sold units and 1,672 units sold to a notary public. At present, it has approximately 1,500 apartments in five locations on offer.
Last year, the Group purchased land for future development projects worth PLN 43 m, as compared to PLN 204 m spent on plots in 2018.