In 2017, the Wielton Group’s sales revenues increased by over 33%, reaching the all-time level of PLN 1.6 billion
- In 2017, the Wielton Group's sales volume amounted to 15,109 units. (17.5% y/y)
- Consolidated sales revenues in 2017 amounted to PLN 1,597.2 million (increase by 33.4% y/y)
- At the end of the period, the consolidated net profit reached PLN 83.4 million (increase by 40% y/y)
- PLN 116.1 million EBITDA result with profitability at 7.3% in 2017 (increase by 9.5% y/y)
- The Group's foreign sales in 2017 amounted to 10,574 units (increase by 17.5% y/y), and export revenues reached PLN 1,146.1 million (increase by 50% y/y)
In 2017, the Wielton Group achieved record revenues, more than 1/3 higher year-on-year. Consolidated EBITDA result at the end of 2017 was by as much as PLN 10 million higher than a year before and amounted to PLN 116.1 million with profitability at 7.3%. Net profit attributable to equity holders of the parent company increased in 2017 by 40% y/y to PLN 77.3 million. The Group also recorded an increase in the sales level and revenues in all key markets and strengthened its position, continuing its adopted acquisition policy, including the acquisition of the German company Langendorf, as well as increasing its shares in Fruehauf SAS to 100%.
Record-breaking results both at the revenue and profit levels of the Group are the best example of our development strategy being implemented according to the plan. One of the key goals we set for ourselves was the systematic strengthening of the Group's position on foreign markets. This assumption is consistently being realized, which is reflected in the dynamic growth of export revenues, which in 2017 was 50% higher than in the previous year. Regardless of the success on foreign markets, in Poland, we are 3rd and catching up to the leaders, said Mariusz Golec, President of the Board of Wielton S.A.
The sales volume of the Wielton Group in 2017 totalled 15,109 units of semi-trailers and road trailers as well as agricultural products. This result consolidates sales in the Wielton, Viberti and Fruehauf brands, as well as the sales of Langendorf from August to December last year. Compared with the same period last year, when 12,859 units were sold, the accumulated result for 2017 is higher by 17.5%. Nearly 70% (10,574 items) is foreign sales.
The boom and three-digit growth in Russia is favourable for the records
The Group recorded record-high sales revenues on all markets. In France, in the market growing by 7.2% y/y the sales of the French company Fruehauf SAS amounted to 5,020 units and was higher by 5.8% y/y. In Italy, where the market size is estimated on the total number registrations (which amounted to 16,142 vehicles, an increase by 8.8% y/y), the Group’s Viberti company increased the product sales by 34.2% y/y to 882 units, and its revenues in 2017 amounted to PLN 85 million (increase by 24.1% y/y). The increases were also observed on the Russian market, where the good economic situation translated into increased sales of all products in total of 1,758 units (increase by 141.2% y/y), as well as revenues, which increased to PLN 155 million (increase by 138.5% y/y). In the fourth quarter of 2017, the sales volume of Wielton GmbH and Langendorf was consolidated – the Group sold 602 units in total on the German market.
Consistent implementation of the 2017—2020 development strategy
Year 2017 was very successful for the Wielton Group. We announced the development strategy for 2017—2020, we acquired an 80% stake in the German company Langendorf and we finalized the acquisition of the French company Fruehauf SAS. At the same time, we implemented consolidation and integration processes, and simultaneously completed a number of investments in the area of production automation and robotics. With such a high dynamics, functional changes are indispensable. That is why in 2017 we started implementing a modern management model throughout the organization, which will significantly accelerate the integration of all companies within the Group, summarises Mariusz Golec, President of the Board of Wielton S.A.
In 2017, the Wielton Group implemented a number of investments aimed at increasing production capacity and developing the product portfolio. Due to the strong financial position supported by the high level of cash generated from operating activities, they were financed mainly from own resources. Investments realized in 2017 included, among others, a painting line for anti-corrosive protection of chassis and crates by cataphoresis, and a paint shop, which are currently in the testing phase. Significant projects in the context of activities addressed at the clients included the development of brand architecture and actions in corporate identity, defining and implementing a unified scope of facility functions and standards in customer service, as well as extending the network of service points throughout Europe.
In addition, quality systems in the Group were also integrated and work on the launch of structures, tools and operational processes for trade in used semi-trailers was started.
Investments in automation and robotics
In parallel with the investments aimed at increasing the operational efficiency of the Group, a number of projects in the field of research and development were also implemented. At the beginning of the third quarter of 2017, three lines for welding trailer frames were commissioned. In the following months, the equipment assembly on the new KTL line was also completed. In August, the company also concluded a contract with the National Centre for Research and Development (NCBiR) on co-financing the production of cold stores. The cost of the entire project, which will be completed in 2019, will amount to PLN 20 million, of which 44% will be co-financed by NCBiR.
The current projects of the Wielton Group focus on increasing production capacity and will result in increased efficiency, which will allow the company to take advantage of the growing demand. In the first quarter of 2018, line no. 4 for welding tipper bodies will open in the newly built welding hall, while the following quarter will see the launch of two automated lines for welding beams of the main semi-trailer frames. An automated painting line for anti-corrosive protection of chassis and crates by cataphoresis and a paint shop: are in the testing phase. In the second quarter, two automated lines for welding main beams of trailer frames will also be completed.
Key consolidated financial data for Q4 and four quarters of 2017 of the Wielton Group [mln PLN, %, p.p.]
