Press Release - Annual Report 2022

Épduferr Nyrt. Annual Report 2022

In 2022, Épduferr Nyrt. was able to grow in several areas of its operations despite a challenging external environment, including the post-COVID period, the Russia-Ukraine war, high inflation, currency market volatility, supply chain disruptions, and rising energy prices.

The company successfully transitioned to a more diversified operational strategy, which allowed it to maintain revenue levels similar to previous years. Numerous developments, investments, and expansions were implemented to achieve significant growth in the coming years, beyond organic growth.

Although the company’s performance was affected by unfavorable market conditions in the general contractor business – with clients/investors rethinking and redesigning projects due to the tough economic environment – the first quarter of 2023 shows more promising results. The order stock for this year is significantly higher than it was at this time last year, providing grounds for optimism (e.g., the Andrássy 13 project, Kapuvár Sports Hall, and Intercisa Museum developments). These, alongside market inquiries and orders from other business sectors, signal further growth for the company.

The steel trading division outperformed expectations in 2022, and the sheet metal processing plant’s production steadily increased, switching to a two-shift production system by year-end. At the same time, the contractor division secured significant steel structure manufacturing orders. As a result, Épduferr Nyrt. decided to create a new division focused on steel structure manufacturing at the end of 2022.

The company’s strategic goal of transforming from a general contractor into a diversified, multi-faceted General Contractor-Trading-Service and Manufacturing Company has been achieved. The company now operates in a coordinated, diversified manner, leveraging synergies between its divisions to strengthen and expand its presence in both the Hungarian and international markets in the coming years.

The demand for the company’s services and products is rising, thanks to the dynamic launch of new business divisions and the reputation it gained from being listed on the stock exchange.

Épduferr Nyrt. Financial Summary:

Summary Data (HUF thousand)	2021	2022
Revenue	4,763,280	4,521,275
Material Costs	-3,917,540	-4,097,851
Personnel Costs	-245,215	-387,863
Depreciation and Amortization	-46,575	-77,933
Other Expenses	82,561	31,121
Operating Profit	443,723	-11,251
Financial Result	-40,917	16,264
Profit Before Tax	402,806	5,013
EBITDA	490,298	66,682

Source: Épduferr Nyrt. General Ledger, Reports

Despite a period of stagnation, the company nearly maintained its revenue, thanks to the introduction of new business divisions. However, the temporary slowdown in the general contractor division, significant personnel expansion, and investments in infrastructure and technology resulted in the company’s performance for 2022.

Épduferr Nyrt. Revenue by Business Area:

The transition to a more diversified operational model occurred ahead of schedule, as evidenced by the more balanced distribution of revenue across the company.

In 2022, the General Contractor Division focused on preparing investments. For delayed or postponed investments, the company worked with clients on in-depth preparation and redesigning projects. By the end of the year, several contracts were signed, with projects set to be realized in 2023 and beyond. The contractor division responded well to sudden changes in ongoing projects, such as material shortages and price increases, ensuring no supply, pricing, or deadline issues in the contracted work.

Building Materials Trading (Épduker):

In 2022, Épduker achieved record revenue of over 600 million HUF from external sales. It is strategically important for Épduferr as it provides construction materials for the company’s activities. By year-end, Épduker became a key player in Dunaújváros and its region. Despite unprecedented challenges caused by the nearby war, Épduker maintained high-quality services and a stable product offering.

Steel Trading Division (Eximferr):

Eximferr achieved outstanding revenue of 2.28 billion HUF in 2022, despite significantly worsened market conditions in the second half of the year (price and demand decline). The installation and trial operation of manufacturing machinery were completed in the third quarter. From August 2022, the company expanded its portfolio to include the production of semi-finished products. Even in the uncertain economic environment at the end of 2022, Eximferr successfully increased orders and production at its manufacturing plant.

Thanks to strategic decisions and implemented developments in recent years, the company is well-positioned to continue on a dynamically growing trajectory, even in a challenging economic environment.

The newly created business divisions are operating efficiently, leveraging synergies effectively. This further strengthens Épduferr Nyrt.’s presence in existing markets and creates new opportunities for further growth, expansion, and the acquisition of new markets.

The complete 2022 Annual Report is available for download.

For further information:

István Chlebda – Investor Relations Contact

Email: ir@epduferr.hu