Profits under control

The loss of revenue has not significantly affected the company’s profits. The Trakcja Group is effectively developing its operations in new segments, diversifying its portfolio of purchase orders, and expanding its production capacity in order to be ready for future railroad projects.   

In the first 6 months of 2016, the Trakcja Group achieved revenue of 478.8 million zlotys, which is 15.2% less compared to the same period of 2015. At the same time, the Group achieved net profit on the level of 18.6 million zlotys, which is 3.1% more than in the previous year.   

“This year, for the first time in several years, we paid out dividend equal to 17,475,846.32 zlotys. This is equal to nearly 50% of Trakcja PRKiI S.A.’s profits earned in 2015. In our portfolio, road and power engineering sector contracts have already exceeded the level of 30% of all purchase orders, which compensated for the reduction in the number of railroad projects. However, we have been expanding our production capacity to be ready for new railroad projects and we intend to maintain our current share in this market” - said Jarosław Tomaszewski, the President of Trakcja PRKiI S.A.  

On the other hand, in the 1st half of 2016, the company Trakcja PRKiI S.A. achieved revenue from sales equal to 268.3 million zlotys, which was 22.5% less than in the same period of the previous year. The gross profit margin from sales in the 1st half of 2016 was equal to 5.9%, which was 3.4 percentage points less than in the same period of 2015.

The company’s financial revenue in the period between 1 January and 30 June 2016 was equal to 25.5 million zlotys, which is 7.8 million zlotys more than in the same period of 2015. The increase of the financial revenues resulted mostly from the higher dividends paid by the company’s subsidiaries - by 9.3 million zlotys. In the 1st half of 2016, the financial costs were 1.9 million zlotys lower than in the 1st half of 2015 and were equal to 2.1 million. This reduction was mostly due to the lower level of debt compared to the same period of the previous year and to the lack of interest on bonds, which was paid in 2015.

In the period in question, the Company generated gross profit equal to 27.2 million zlotys; this was 2.1 million zlotys more than the 25 million zlotys which the company earned in the same period of the previous year.