Poland’s Bowim earnings take bigger hit than volumes

Poland’s largest listed steel distributor, Bowim, saw consolidated revenue fall 33% on-year in the third quarter to PLN 514.9 million ($127.6m) while net profit was down 76% to PLN 2.3m, Kallanish notes.

In the nine months through September, steel sales dropped 2.1% on-year to 376,976 tonnes. Sheet represented 151,018t, up 2%, while pipe and tube sales were up 4% to 72,718t and rebar sales surged 20% to 61,086t. Prefabricated reinforcement deliveries however fell 31% to 28,582t.

Nine-month revenue was down 27% to PLN 1.61 billion and net profit plummeted 93% to PLN 7.34m.

Earnings were impacted by a 40% drop in sales prices following a continuous downward correction seen since May 2022, the firm says. However, volumes fared better, given the Polish Steel Association forecasts a 6% on-year drop in Polish steel consumption in 2023.

Adam Smith Poland