The Unibep Group has published its results for the first quarter of 2024. During the analysed period, the Group generated consolidated revenue of PLN 455.9 million, which represents a 13% decrease year-over-year. EBITDA amounted to PLN 105.9 million compared to PLN 19.7 million the previous year. The consolidated net profit amounted to PLN 76.3 million, compared to a net profit of PLN 4.4 million in the corresponding period last year.
A significant factor affecting the financial results for the first quarter of 2024 is the impact of one-time events related to the reclassification and valuation of land owned by subsidiaries of Unidevelopment. The positive impact of the indicated valuation on the reported quarterly net result was PLN 81.2 million.
“The Group’s operating profits, after adjusting for the impact of the aforementioned one-time events, remain practically neutral, with an adjusted operating loss of only PLN −1.3 million. Given the losses reported in the fourth quarter of 2023, this represents a significant step in improving operational profitability and strengthening the company’s cash position. The pace of this improvement exceeds the assumptions presented in the 2023 report,” said Dariusz Blocher, President of the Management Board of Unibep SA.
In the first quarter of 2024, the Unibep Group secured construction contracts with a total value of approx. PLN 0.6 billion. As of 31 March 2024, the backlog of orders for future periods amounted to approx. PLN 3.8 billion, compared to PLN 3.6 billion as of 31 December 2023. At the same time, the value of contracts pending signature, where the company’s offer ranked first in the bidding process, exceeds PLN 0.8 billion. And in April and May 2024, new orders totalling PLN 0.37 billion were secured from this group of pending contracts.
As announced by the company’s management, the Unibep Group will continue to pursue a policy of choosing contracts selectively in the construction and modular segments to ensure optimal economic outcomes. Although such a policy may slightly limit the development dynamics of construction and modular activities, it will positively contribute to improving operational profitability in future reporting periods. In the development segment, the company management will consistently implement sales plans in accordance with project schedules and apply a well-considered pricing policy for individual customers.
In the opinion of the Management Board, the greatest prospects for contracting lie in the infrastructure and power and industrial construction segments.
“In recent months, we have done substantial work within the organisation: strengthening acquisition efforts, collaboration with support departments, and oversight at construction sites. We are in the process of overhauling the financial control system and strengthening operational control and risk management processes. The first positive results of our efforts are already visible. Therefore, according to our estimates, the operating profit of Unibep SA, expressed as a percentage of sales, should be within the range of 1% to 1.5% for the entire year of 2024, which aligns with previous declarations. This is the expected profitability excluding extraordinary events related to the revaluation of assets,” summarised Dariusz Blocher, President of the Board.
