Comment on the financial results for the three quarters of 2020
In the period of three quarters of 2020, the Mostostal Warszawa Group generated sales revenues of PLN 1,021 million and gross profit of PLN 6.5 million. Despite the coronavirus pandemic, the Group has maintained a satisfactory level of cash position, which combined with a strong production potential, gives promising prospects for the coming months.
In the period of 9 months of 2020, the companies of the Mostostal Warszawa Group concluded new contracts with a total value of PLN 2,204 million. The value of the Group's portfolio of orders at the end of the third quarter of 2020 amounted to PLN 3,173 million, which ensures the achievement of revenues in the next 3 years at a level similar to 2019.
In the reporting period, the Group's results were significantly influenced by the weakening of the Polish currency against the euro caused by the coronavirus pandemic.
The cash position of the Capital Group at the end of the third quarter of 2020 amounted to PLN 136 million.
Employment reached the level of 1,487 employees, remaining at a similar level compared to the end of 2019.
The challenge for the Mostostal Warszawa Group in the coming quarters of this year will be to limit the impact of the effects of the SARS-CoV-2 pandemic on the results achieved. The Group's companies have introduced constant monitoring of the effects of its impact on the current operations and implemented instructions for dealing with the risk of delays or increased costs. So far, despite many difficulties caused by the coronavirus, including circumstances affecting supply chains - operating activities are conducted without significant disruptions, and all companies of the Group maintain business continuity. The production support functions are also performed continuously, including aspects of health and safety, human resource management, purchasing and others.
We are observing a temporary slowdown in new private investments, and a lesser extent in public investments, which may affect the Group's revenues in the coming years. However, the diversified offer of the Mostostal Warszawa Group allows for flexible adaptation of its strategy to the changing situation on the construction market.
The goal of the Mostostal Warszawa Group for the coming quarters is to maintain the contracting level adequate to the potential of the companies making up the Group.
The financial statement of the Mostostal Warszawa Group for the third quarter of 2020 is available on mostostal.waw.pl website in the Periodic Reports tab.