Management Commentary of Mostostal Warszawa S.A. on the results for the third quarter of 2024
The Mostostal Warszawa Capital Group generated sales revenue of PLN 1,124 million in the first 3 quarters of 2024 (compared to PLN 1,224 million in the same period of 2023) and achieved a sales profit of PLN 43 million gross (down from PLN 65 million in 2023). The Group reported a gross loss of PLN 16 million in the first 3 quarters of 2024, compared to a gross profit of PLN 10 million in 2023. In the first 3 quarters of 2024, the main reason for the loss was a decline in the profitability of two contracts: one in the energy sector and the other in general construction. This was due to increased execution costs. These costs were driven by higher prices for materials and subcontractor services, as well as additional expenses incurred to accelerate project completion timelines, coupled with insufficient contract indexation. The cash position as of September 30, 2024, amounted to PLN 69 million. Employment in the Capital Group at the end of the third quarter of 2024 was 1,490 people.
The order portfolio of Mostostal Warszawa Capital Group amounted to PLN 3,062 billion, as of September 30,2024. From January to September 30, the Group signed contracts totaling PLN 864 million.
This portfolio secures the Group's operations for nearly three years. We are taking steps to maintain the health of Mostostal Warszawa, focusing on delivering high-quality services and fostering proper cooperation with clients and subcontractors. Additionally, we aim to play an active role in the transformation of the Polish energy sector, with our work and experience as well as collaborating with our strategic partner – Acciona – to reduce environmental burdens in energy and industry.