The ÉPDUFERR has made a big splash

Source: portfolio.hu 28 September 2022 15:26
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Recognizing the slowdown in the construction industry and the delayed start of investments, the company's resources were shifted from general construction to steel trading business in time, and the company also started to build up its regional sales network. The commercial activities have also been given the task of selling the production capacity of the plate processing plant, which has now been started up, as evidenced by the steady increase in demand and orders from manufacturers.

THE GENERAL CONTRACTING SECTOR EXPERIENCED A TEMPORARY SLOWDOWN IN THE FIRST HALF OF THE YEAR.

As with all market players, the initial uncertainty led customers to rethink their projects, with the result that the contracting of previously planned projects was halted. Customers have partly redesigned their investments, taking into account energy efficiency aspects, in response to changes in the energy market. On the other hand, a period of calm was needed, which lasted through the summer, during which time fears of escalation subsided somewhat and the return on investment in projects was still assured. Therefore, ÉPDUFERR currently sees its clients remaining committed to the developments.

The transition to a more diversified operation has been completed ahead of schedule, as evidenced by the more even distribution of the company's turnover. This year, ÉPDUFERR is still focusing on ramping up its manufacturing capacity, so that from next year it hopes to be known as a General Contractor-Commercial and Manufacturing Company rather than a General Contractor.

As for the concrete figures, the company's turnover increased by 15.5 percent to HUF 2.6 billion. It is difficult to base the development of turnover on the reference period because of the reclassification detailed above, but the graph below shows that steel trading dominated in terms of turnover generation.

The war that broke out at the end of the first quarter completely disrupted the world economy, and fears of a shortage of goods pushed prices and purchasing volumes up sharply, a trend that persisted until the middle of the second quarter. A period of hoarding set in, which nearly doubled the price of raw materials in 1-2 months, but the company responded in time. It reallocated its financial resources to the purchase of steel products, with purchase volumes significantly exceeding those previously planned. The significant price increase

Higher sales were accompanied by higher costs for materials and services, while personnel expenses increased by almost 68 percent to HUF 170 million and other operating income decreased by 72 percent compared to the first half of last year, resulting in a 7.2 percent drop in operating profit to HUF 297.3 million.

However, the result of financial operations turned positive compared to last year, mainly due to the fact that profit before tax increased by 11.4 per cent to HUF 321 million and profit after tax reached HUF 281.6 million, following a 7.5 per cent increase.

This article is the property of Net Média Zrt. All rights reserved.