Bowim’s sales fell in the nine months through September as the market deterioration from the second quarter hit business. Higher prices boosted revenue but increased costs dented profitability, Kallanish learns from the Polish distributor.
Consolidated steel sales dropped 5% on-year in January-September to 385,238 tonnes. Although sheet sales fell only 1% to 148,390t, pipe and tube deliveries dropped 6% to 69,894t and rebar sales plunged 23% to 50,942t. Sections sales however rose 9% to 50,185t.
Rising inflation, higher interest rates and the repercussions of the Ukraine war started to impact the steel market in the second and third quarters, resulting in a downward demand and price correction. This was behind Bowim’s reduced volumes.
Despite the lower volumes, nine-month revenue rose 33% to PLN 2.2 billion ($487.8 million) thanks to higher sales prices. However, net profit dropped 24% to PLN 110.4m due to higher operating costs.
Imports accounted for 28% of Bowim’s purchases in the nine months versus 25% a year earlier.
Adam Smith Poland