Unibep builder has approx. PLN 3.5 bln backlog; PLN 500 mln in pending contracts

Unibep's consolidated operating profit after the three quarters of 2024 amounted to PLN 159.1 million (EUR 36.7 mln), against an operating loss of PLN 1.1 million (EUR 253,880) in the prior year period.

Attributable net profit amounted to PLN 46.5 million (EUR 10.7 mln), compared to a loss of PLN 30.5 million (EUR 7 mln) recorded in the prior year period.

As reported, the group's results were positively impacted on a one-off basis by operations related to the reclassification and fair value measurement of selected land properties.

"In the first three quarters of 2024, we made key organisational changes that improved our ability to control risks, strengthened communication in construction projects and increased the efficiency of our response to possible deviations from assumptions," assessed Unibep's CEO Dariusz Blocher, quoted in the press release.

"Despite the difficult market situation, we are consistently pursuing a selective contract selection policy, which, although it may temporarily limit growth dynamics, will contribute to a sustained improvement in operating profitability," he added.

In the three quarters of 2024, the group contracted new construction orders with a total value of more than PLN 1.4 billion (EUR 323.1 mln), which increased the value of the order book to be executed in subsequent periods to approximately PLN 3.5 billion (EUR 807.8 mln), up by 13 percent from the prior year period. Currently, the value of contracts waiting to be signed is approximately PLN 500 million (EUR 115.4 mln).

According to management board member Andrzej Sterczynski, in subsequent periods Unibep will pursue a selective policy of selecting contracts particularly in the construction segment whose economic values will be optimal in terms of results.

"On the one hand, this policy may somewhat limit the growth dynamics of the construction business, but it will decisively and positively contribute to further consolidated improvements in operating profitability in subsequent reporting periods. In the field of modular construction, we are currently working intensively on the effective penetration of the Polish market to win new orders, in view of the weakness of foreign markets (Germany and Norway)," Sterczynski said.

"In the case of the property development segment, the management will continue to implement sales plans in accordance with the schedules of individual projects and a sensibly considered pricing policy for individual customers," Unibep's management board member added.

Unibep operates in various segments of the construction industry. It is a general contractor in Poland, realising housing estates and cubature facilities and working in the energy and industrial segment, as well as operating in infrastructure (building roads and bridges, viaducts and other engineering structures) mainly in north-eastern Poland.

The company has a modular house factory in Poland - Unihouse - which sells mainly to the German and Polish markets and to Scandinavian countries. The Unibep group - through Unidevelopment - is also active in property development in Warsaw, Poznan, Radom and the Tricity.

doa/ ao/ nl/