Cost, sales price pressure slash Bowim’s first-quarter earnings

Poland’s largest listed steel distributor Bowim reported a 9% on-year drop in first-quarter standalone revenue to PLN 563.6 million ($136.2m), while net profit collapsed 95% to PLN 2.2m, the firm says in its preliminary figures.

The company attributes the lower earnings to the constant downward price correction seen since May 2022 resulting from war in Ukraine, high energy costs, high inflation and interest rate hikes.

Bowim will publish its consolidated Q1 report later this month, Kallanish notes.

In full-year 2022, Bowim’s consolidated shipments fell 7% on-year to 499,883 tonnes, with sheet comprising 196,413t, down 4%. Rebar deliveries plunged 15% to 64,424t. Structural steel works took the largest share in sales, although it was down 2 percentage points on-year to 26%, while the machine industry raised share by 2pp to 11%.

The firm posted record consolidated revenue of PLN 2.76 billion last year, as higher prices partly offset lower shipments, but net profit fell 27% to PLN 111.5m on higher costs.

Adam Smith Poland