Large contract portfolio, better quarter than last year
As of the end of March 2019, the value of the portfolio of construction contracts of the Trakcja Group was equal to 2.7 billion zlotys (not including the shares of consortium members). In the first quarter of 2019, companies from the Trakcja Group signed construction contracts with the total value of 250 million zlotys (not including the shares of consortium members). Moreover, the total value of the tenders in which the company submitted the most advantageous proposals is equal to over 1 billion zlotys. The current contract portfolio of the Trakcja Group, as of 31 March 2019, ensures full utilization of the production capacity in the next financial year.
In the 1st quarter of 2019, the Trakcja Group achieved revenue from sales on the level of 228.5 million zlotys, which is 23.4 million zlotys more than in the same period of 2018. The gross profit from sales increased by 5.2 million zlotys compared to the same period of last year. The gross margin on sales was equal to -1.2% in the first quarter of 2019, while in the same period of 2018 it was equal to -3.9%. In the period of 1 January - 31 March 2019, the Trakcja Group recorded a gross loss equal to 22.5 million zlotys, which was 3.2 million zlotys lower than the gross result in the 1st quarter of 2018. The Group's net result in the first quarter was -16.1 million zlotys and was better than the net loss in the 1st quarter of 2018 by 6.4 million zlotys.
In the 1st quarter of 2019, Trakcja PRKiI achieved revenue from sales equal to 186.5 million zlotys, which is a 9.5% increase compared to the same period of 2018. The gross profit from sales was equal to 6.4 million zlotys, which is 9.1 million more than in the same period of last year. The increase of the gross margin from sales was the result of a changed structure of the Company's contract portfolio, with an increased share of high-margin contracts in the 1st quarter of 2019. The margin of the gross result from sale in the 1st quarter of 2019 reached 3.4%, which was 5.0 p.p. more than the margin in the 1st quarter of 2018. The Company's net loss in the 1st quarter of 2019 was equal to 3.3 million zlotys, which was better by 6.2 million compared to the same period of last year.
The factors that made the greatest impact on the level of revenue from sales and on the results in the 1st quarter of 2019 are the seasonality of sales that is typical for companies in the construction industry, which involves a significantly lower of revenue in the first quarter of the year and generation of a significant part of revenues from sales in the second half of the calendar year.
Media Information
Robert Kuczyński
human resources and communication director
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