Drozapol foresees pandemic hitting economic investment

Polish distributor Drozapol’s consolidated revenue rose 7% on-year in the first quarter to PLN 30.6 million ($7.7m) and net loss narrowed 62% to PLN 470,000.

The beginning of Q1 saw increasing prices, margins and optimism stemming from higher sales revenue. Although the firm is yet to feel the effect of the Covid-19 pandemic on its business, it says possible risks include worker absenteeism and disruption to imports.

“The lack of budget funds for new investments, significantly reduced funds of cities and municipalities, the cautiousness of Polish companies in the field of investment, and slowdown in the development of companies and investments in many areas of the economy is and will be particularly noticeable in the context of budget changes and expenses related to the Covid-19 pandemic,” Drozapol observes.

The firm previously said the pandemic could halt the positive trend seen since the start of 2020 in Poland’s construction industry, which would in turn hamper its performance (see Kallanish passim). It could also significantly hamper Drozapol’s project to increase construction reinforcement exports. The firm’s 2019 revenue fell -20% on-year to PLN 123.4m and it sunk to a PLN 4.4m loss versus a PLN 220,000 profit a year earlier.