Unibep SA summarised the results for the first half of 2022
Approx. PLN 38 million of net profit (increase by approx. 138% yoy) with sales of approx. PLN 1 billion (increase by approx. 47% yoy); These are the results of Unibep Group for the first half of 2022. The value of signed agreements in the backlog of orders of Unibep Group is approx. PLN 3.5 billion.
“The significant increase in profit was mainly due to the high number of delivered apartments in the development segment and its high margin,” explained President of the Management Board of Unibep SA Leszek Gołąbiecki. “The results of other segments, considering the geopolitical and economic situation, are in line with the expectations.”
Solid backlogs of orders
According to the president, the construction industry is one of the sectors of the economy that has suffered the most from the consequences of the armed conflict that flared up in Ukraine a few months ago. Large increases in energy and fuel prices, unprecedented increases in prices of materials and services, broken supply chains, high inflation, wage pressure, investment slowdown, especially among private investors; These are just some of the challenges the construction industry faces after Russian attack on Ukraine. It is true that recent months, despite the difficult geopolitical situation, have brought a partial stabilisation, mainly in terms of slowing down the dynamic growth of prices of materials, which are still at a high level, though. And it is the rising cost of energy which strongly affects the current activity of the construction industry and companies’ results.
“In Unibep Group, most of our contracts have been signed with private investors, both in Poland and abroad. We discuss with them the additional charges and valorisation of contracts, and it must be admitted that it does not always fully compensate for the increase in prices of materials and services. Nevertheless, we are pleased with the understanding shown by most of the investors and the search for solutions that allow all parties to the construction process to achieve their business goals,” said Leszek Gołąbiecki. “In the case of public institutions, including those which order investments in the infrastructure segment, we are pleased with the change in investors’ approach and the increase in indexation of contracts to the level of 10%, however, in our opinion, this level of indexation is definitely too low.”
Residential, office, and industrial construction is currently running approx. 40 investments throughout almost the entire country, implementing contracts for individual and institutional investors. It has a backlog of orders worth approx. PLN 1.6 billion.
The power and industry segment consistently develops its activities working for such foreign brands like Panattoni, Mondi, and Viessmann. It is also implementing energy projects, i.a., for a housing cooperative in Ełk. The backlog of orders of this segment is worth approx. PLN 760 million.
The Infrastructure Branch of Unibep SA is currently leading approx. 30 infrastructural investments varying from repair works to construction of expressways in the area of four voivodeships: Podlaskie, Mazowieckie, Lubelskie, and Warmińsko-Mazurskie. The value of signed agreements is approx. PLN 840 million. On the other hand, Budrex Sp z o.o., the company constructing viaducts, bridges, and other engineering structures, focuses on close cooperation with the Infrastructure Branch of Unibep SA and work as a subcontractor for other general contractors working on implementation of large infrastructure investments conducted in Eastern Poland. Currently, the company backlog of orders is worth approx. PLN 130 million.
Unihouse SA, a subsidiary of Unibep SA, a manufacturer of multifamily buildings in timber-based technology is worth approx. PLN 200 million. In the third quarter of 2022, the company completes the construction of over 330 standardised modules of for Adapteo (former Cramo). The Company is consistently developing its business on German market; the backlog of orders there is close to PLN 100 million. It cannot be ruled out that Unihouse SA will join the construction of housing estates which will be built in Ukraine.
In total, the backlog of orders of all segments is worth approx. PLN 3.5 billion. It is worth adding that only in the second and third quarter of 2022, companies from Unibep Group signed agreements worth approx. PLN 720 million.
Good position of the developer
In the first half of 2022, Unidevelopment, the development group of Unibep, introduced further investments to the market. At the beginning of the year, the sale of apartments in Pauza Ochota residential estate in Warsaw was launched. And in Poznań, the developer continues construction of a multi-stage housing estate called Fama Jeżyce. Additionally, the company also launched an investment in Radom called Idea Venus in the first half of 2022. Unidevelopment also began the developer’s sales of another 24 apartments in semi-detached houses within the housing investment called Idea Ogrody.
“In my view, the existing sales and the structure of the company offer allows stable operation for Unidevelopment SA despite the demanding market situation resulting from geopolitical and macroeconomic factors,” assessed president Gołąbiecki. “In the second half of the year, owing to the transfer of apartments from the accomplished development investments, the company expects to achieve its economic assumptions. Of course, the company is analysing the current and forecasted microeconomic and market situation on an ongoing basis.”
Challenges for the forthcoming months
The president stressed that Unibep SA is a company which has regularly paid dividend since 2008. In June 2022, the Ordinary General Meeting decided to pay its shareholders the dividend of PLN 0.5 per share. The first instalment was paid on the second of August and the subsequent payment is scheduled for the third of October. “This is a record-high dividend in the history of the company,” said President Leszek Gołąbiecki.
The president said that the priorities of Unibep Group have remained unchanged for years. They are the high quality of services and products, timely implementation, customer satisfaction, and good standing of the company, including its finances, as well as care for its personnel.
“The armed conflict in Ukraine, unstable geopolitical situation, and high inflation in Poland generate many risks, which we cope with every day. This is why we monitor the market situation on an ongoing basis and provide a flexible response to changes in our business environment. Currently, the main operational goal is defending the result of every construction investment which, considering the unstable situation we deal with, requires flexibility and speed of action,” summarised Leszek Gołąbiecki. “We are prepared for various scenarios of events, including the negative ones, although we are aware the current reality, unfortunately, not everything depends on us.”
Unibep Group
Unibep SA is a leading construction company in Poland. It operates in a variety of segments in construction industry. It is a general contractor in Poland, a well-established developer in the area of residential, commercial, and industrial construction, including the power sector. The company owns the biggest in Poland factory of modular houses, sold mainly to Scandinavian countries. It operates in road construction and builds roads mainly in north-eastern Poland. Through its subsidiary, Budrex, it constructs and repairs bridges all over the country. Unibep SA, through its subsidiary, Unidevelopment SA, conducts property development activities in Warsaw, Poznań, Radom, and in the coming future, in the conurbation of Tricity.