Net revenues of the Industrial Group PROJPRZEM MAKRUM S.A. from sales in the period of 3 months of 2020 amounted to PLN 82.9 million and were higher by PLN 34.6 million (i.e. 71.5%) compared to the revenues achieved in the corresponding period of 2019. In the first quarter of 2020, the Group generated operating profit of PLN 4.7 million compared to PLN 0.5 million in 2019. The Group recorded a gross profit of PLN 3.0 million. In the period of 3 months of 2020, net profit amounted to PLN 1.6 million (i.e. a higher result compared to 2019 by PLN 1.3 million).
In the first quarter of 2020, Group PROJPRZEM MAKRUM S.A. continued production and sales in the main operating segments, i.e. docking solutions, steel structures and automatic parking systems as well as industrial construction.
The very large increase in revenue in the industrial construction segment (PLN 35.2 million, i.e. 272.9%) was the result of far advanced and implemented by three branches Projprzem Budownictwo Sp. z o.o. projects, while in the same period of 2019, construction was in its early stages and implemented only in two branches (the Wrocław branch was in the organization).
A decrease in revenues was recorded in the docking solutions segment (PLN 1.2 million, i.e. 4.0%). This product is directed mainly to export markets – the pandemic state announced in March 2020 caused a delay in deliveries of products of the parent company of the Industrial Group.
“An increase in revenues was recorded in the steel constructions segment (PLN 0.9 million, i.e. 15.2%). The sales of MODULO car parks also increased by PLN 2.0 million, i.e. 94.7%. We expect further dynamic growth of this product range and a significant improvement in sales profitability as well as strengthening of competitiveness and market recognition of these products. The drop in sales of MAKRUM machines (PLN 1.1 million, i.e. 31.7%) in the period of 3 months of 2020 is the result of a different structure (fewer large production orders) and production schedule than a year earlier” – explains the President of the Board Piotr Szczeblewski.
Piotr Szczeblewski, President of the Management Board, says the factors shaping the company’s activity and results in the first quarter: “Undoubtedly, an unusual event having an indirect impact on the Group’s activity is the state of pandemic announced in March 2020 (Covid 19), and a factor directly affecting the shape of the report for the first quarter of 2020 is followed by a sudden and significant increase in exchange rates against PLN. The high EUR / PLN exchange rate as at 31.03.2020 caused a loss on financial activities (negative value of converted open currency positions, including forward contracts, credit and loans as well as currency settlements). As at the date of publication of the report, the exchange rates decreased significantly. It should be emphasized, however, that in the long term, the persistently high exchange rate of the euro should have a positive impact on the Group’s results, because about 1/3 of sales are made for export. Another factor having a moderate impact on the financial statements and related to the announced state of the pandemic were the decisions to temporarily restrict traffic or close borders within the EU, which resulted in a delay in the delivery of products.”
In the first quarter of 2020, the Group expanded by two new entities.
“The first of them is the newly created company PROMStahl Ltd. based in Great Britain, which was created with the intention of intensifying sales in the docking solutions segment directly on the British and neighboring market. Another new entity is functioning on the market under the current name of DPS Serwis Sp. z o.o., which after being in the ranks of the Group changed its name to PROMLIFT Sp. z o.o. This entity will expand the PROJPRZEM MAKRUM offer on the warehouse logistics market, offering for sale, service and rental of forklifts” – says Szczeblewski.
