Stalprofil's first-quarter revenues decreased 30% y-o-y to PLN 232.6 million ($55.9 million), while net profit decreased 89% to PLN 4.05 million. According to the company's preliminary figures, the low steel prices seen since late 2022 continued in the first quarter, leading to single-digit distributor margins.
In addition, higher operating costs compared to last year, including labour, energy and logistics costs, along with significantly weaker demand compared to the first quarter of 2022, impacted earnings. Stalprofil observes that the low level of government investment at national and local level also led to lower demand from the construction sector.
In FY2022, the company's steel product sales increased 6.5% y-o-y to 221,136 tonnes, while sales of pipe anti-corrosion coatings in the infrastructure segment increased 20.5% to 1.64 million m2. Consolidated revenue increased by 34% to PLN 2.22 billion, of which 10.2% was generated from exports.
Fellow Polish distributor Bowim also reported a 9% and 95% decrease in first-quarter revenue and net profit, respectively, citing a downward price adjustment since May 2022 due to the war in Ukraine, high energy costs, high inflation and interest rate hikes.
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