Bowim earnings remain under pressure despite higher deliveries

Bowim’s consolidated revenue in the first half of 2023 dropped 24% on-year to PLN 1.09 billion ($252.7 million), while net profit plummeted 95% to PLN 5m.

This is despite the Polish distributor’s shipments inching up 2% to 247,085 tonnes, driven by a 7% hike in sheet sales to 99,329t and 17% jump in rebar to 40,490t.

Imports accounted for 36% of purchases in H1, a big jump from 26% a year earlier.

Costs of energy and input materials dropped by 11.6%, Kallanish notes.

Besides the risks related to the Ukraine war, such as supply chain disruption, an additional risk is the possible circumvention of EU sanctions by steel processed and supplied from third countries using Russian-origin feedstock, says Bowim.

In full-year 2022, Bowim’s consolidated shipments fell 7% on-year to 499,883t, with sheet comprising 196,413t, down 4%.

The Polish Union of Steel Distributors (PUDS) said in June that Poland’s steel market has become highly import dependent, with distributors no longer able to rely on the stability of guaranteed local mill supply (see Kallanish passim). Price volatility has intensified significantly, making buyers ultra cautious, while Italy has substantially increased traded volumes with Poland.

Adam Smith Poland