Profil:
Stalprofil SAStalprofil steel estimates PLN 835k net loss in Q1 2025 vs PLN 3 mln net profit in Q1 2024
Listed steel distributor Stalprofil expects a standalone net loss of PLN 835,000 (EUR 195,306.50) in the first quarter of 2025, against a net profit of nearly PLN 3 million (EUR 701,700) in the prior year period, the company in a market filing.
According to Stalprofil's estimates, sales revenue in the period increased by 38 percent to PLN 278.7 million (EUR 65.2 mln), while EBITDA fell by 75 percent to PLN 1.2 million (EUR 280,680). Gross profit on sales fell by 12 percent year on year to PLN 15.2 million (EUR 3.56 mln).
The company estimated that the results were negatively impacted by the economic state of the steel distribution market, with continued weak demand for steel products exacerbating competition, causing further market declines in steel prices and declines in trading margins.
"Counterbalancing the weak performance of the steel segment was the good results achieved by the company in the gas transmission network infrastructure segment. The company's result generated in the first quarter of 2025 in the infrastructure segment was positive," Stalprofil said in the market filing.
"During this period, the company started the performance of gas pipeline contracts concluded in 2024, including the largest contract for the construction of the part of the FSRU onshore gas terminal with a gross value of over PLN 288 million. The effects of the contracts concluded last year will be clearly visible in the company's and the group's revenues for the second quarter of 2025," it added.
According to the company, in the period of the downturn prevailing in the steel distribution market, measurable results are being achieved by the strategy adopted for the group, the basis of which is the diversification of activities within four business areas (steel trade, production of steel structures, production of anti-corrosion insulation and construction of gas pipelines), grouped within two basic industry segments (steel segment and infrastructure segment).
As reported, the capital group generated satisfactory results against the market in the first quarter of 2025. Estimated revenues amounted to PLN 573.3 million (EUR 134.1 mln) and net profit to PLN 2.45 million (EUR 573,055).
The estimated results presented take into account the write-offs and provisions made by the company.
Stalprofil is slated to publish its financial report for the first quarter of 2025 on May 23.
doa/ ao/