Management Commentary of Mostostal Warszawa S.A. on the results for the first half of 2024
The Mostostal Warszawa Capital Group generated sales revenues of PLN 655 million in the first half of 2024 (compared to PLN 775 million in the same period of 2023) and achieved a sales profit of PLN 6 million (down from PLN 43 million in 2023). The Group recorded a gross loss of PLN 31 million in the first half of 2024, compared to a gross profit of PLN 7 million in 2023. In the first half of 2024, the main reason for the loss was a decline in contract profitability: one in the energy sector (essentially completed) and another in the general construction segment. This was due to increased execution costs (higher prices for materials and subcontractor services, as well as additional costs from the need to accelerate deadlines) and inadequate indexation. The cash position as of June 30, 2024, amounted to PLN 134 million. Employment in the Capital Group at the end of the first half of 2024 was 1,513 employees.
The order portfolio of Mostostal Warszawa Capital Group amounted to PLN 3.325 billion as of June 30, 2024. From January to June 2024, the Group signed contracts totaling PLN 494 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, collaborating with our strategic partner – Acciona – to reduce environmental burdens in energy and industry.
A shortened interim consolidated financial report for the Mostostal Warszawa Capital Group for the first half of 2024 is available on the website mostostal.waw.pl under the Periodic Reports section.