Data for the period of three quarters indicate a 36% increase in sales revenues
- The Group's consolidated sales revenues for the first three quarters of 2017 amount to nearly PLN 1.18 billion (an increase of 35.7% y/y)
- The highest quarterly net profit: PLN 15.5 million (an increase of 16.5% y/y)
- EBITDA profit of PLN 85.1 million with a yield of 7.2% for the first three quarters of 2017.
- Net profit of PLN 47.3 million for the first three quarters of 2017.
- Foreign sales in the first three quarters of 2017 amounted to 7.811 units (an increase of 27.2% y/y) while revenues amounted to PLN 835.1 million (an increase of 59% y/y)
In the first three quarters of 2017, Wielton Group achieved record-breaking sales revenues, more than one third higher than a year ago. The Group strengthened its position on foreign markets and continues its acquisition policy, including finalising the takeover of the German company Langendorf. In the third quarter, the consolidated EBITDA revenues amounted to PLN 27.8 million, while the net profit of the parent company’s shareholders increased by 16.7% to PLN 14.8 million during the period of July-September, and was the highest quarterly revenue this year. The results of the third quarter include the German company Langendorf, which has been consolidated since August 2017.
Over a billion in revenues
We achieved record-breaking sales results at the end of the third quarter - for the first time since the beginning of the year our consolidated revenues exceeded PLN 1 billion. This is mainly due to our dynamic growth abroad. In line with our strategy, we continue to strengthen our position on the western markets as well as in the East, where we increased our market share - after nearly three quarters in 2017 our sales revenues there increased by nearly 60% y/y. We are not only 3rd on the stable Polish market, but we are clearly catching up to the leaders, comments Mariusz Golec, CEO of Wielton S.A.
Wielton Group sold the total of 11.327 road semi-trailers and trailers, as well as agricultural products. These are consolidated sales to customers of Wielton, Viberti and Fruehauf. In addition, 174 units sold by Langendorf were consolidated in the period of August-September of this year. Compared to the same period last year, when 9.717 units were sold, the accumulated result for 2017 is higher by 16.6% y/y. Nearly 70% (7,811 items) were foreign sales.
In each country, the sale of Wielton Group's products is growing faster than the market itself. In France, Fruehauf is strengthening its position as a market leader, achieving growth at the level of 10.9% y/y, while the market itself increased by 6%. Its share in the entire product market at the end of the third quarter was 20.5%, compared to 19.6% in 2016. In France, since the beginning of 2017 sales revenues increased by 2.2% (to PLN 442.9 million). In Italy, on the market growing by 14.7% y/y, a 34.1% increase in sales and a 22.3% increase in revenues (to PLN 63 million) were noted, and in Russia, sales grew by 267%, while revenues increased nearly four-fold (to PLN 111 million).
Success in development recognised
One of the key investments in the third quarter was the finalisation of the Langendorf Group acquisition, concludes Mariusz Golec, CEO of Wielton S.A. Our successes in international expansion, as well as our leading position on the Polish market were recognised last year by the jury in the competition for the Economic Award of the President of the Republic of Poland, in which President Andrzej Duda presented us with the National Success award. This year, we were once again nominated, this time in the category of International Success.
Wielton Group is implementing an ambitious investment program, financed mainly from its own resources, which aim is to increase production capacity and product portfolio. At the beginning of the third quarter of 2017, three welding lines for semi-trailer frames were opened. In the following months, the equipment assembly for the new KTL line was completed. During this period, a new pallet high-bay warehouse and a loading hall were also launched. In addition, in August the company 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.
In connection with the recent acquisitions, we continued to work on the architecture of our brands and have begun the process of implementing changes related to rebranding. At the same time, we are tailoring our organisational structure to the current needs, as well as the future shape of the Group. We are also working on introducing a shared product configurator for the entire Wielton Group, and we have also begun to integrate our service networks in Germany, says Mariusz Golec, CEO of Wielton S.A. These are only some of numerous projects we have started to implement after adopting a new development strategy. It assumes that by 2020 we will double our sales to 25.000 units a year and increase our revenues up to PLN 2.4 billion, while maintaining a stable EBITDA margin of 8%, Mariusz Golec adds.
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. The process of automating the paint shop, as well as the painting line for anticorrosive protection of chassis and crates using the cataphoresis method is scheduled to be completed in January 2018. 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.
Key consolidated financial data for Q3 and three quarters of 2017 of the Wielton Group [mln PLN, %, p.p.]
