Two-digit Increase in KÉSZ Group
Despite an economic environment becoming more and more uncertain, KÉSZ Holding Zrt., one of the largest Hungarian construction company groups closed the first six months of the year with significant growth. The half year's sales revenue of the this year 40 years old KÉSZ Group has increased by 21 per cent compared to the same period of the previous year to 84.7 billion forints – announced the company. KÉSZ Group employing more than 2 thousand people expects, taking account of its existing orders, stable performance also in 2023 in terms of sales revenue.
KÉSZ Group closed the first six months of this year with a two-digit increase in sales revenue: its net sales exceeded 84.7 billion forints that represents a 21 per cent increase compared to the same period of the previous year. Owing to its wide portfolio, the Group's consolidated pre-tax profit amounted to ca. 5 billion forints, i.e. it increased by 17.5 per cent compared to the reference period. The equity of KÉSZ Group has grown by ca. 38 per cent to 45.8 billion forints. Its consolidated balance sheet total has increased by 24.3 billion forints, i.e. by near 17 per cent to 169 billion forints compared to the same period of the previous period.
Stable liquidity
The 2021 end-year profit of KÉSZ Group engaged in comprehensive activities from design through manufacture and construction to operation was affected by the Russian-Ukrainian conflict that became more acute in this February. Although KÉSZ Group had to account for an impairment loss due to the business shares of its member companies registered in Ukrainian and Russian business operations and the accounts payable to member companies, its equity, income and liquidity position has remained stable, moreover, it improved compared to the previous period. The Ukrainian member companies were exempted from the 2021 consolidation and the Russian member companies were removed from KÉSZ Group's business operations.
"Despite the economic situation becoming increasingly, more and more difficult in the first half of the year, KÉSZ Group has achieved a significant, 21 per cent increase in sales revenue compared to the same period of the previous year. The company did and is doing significant efforts to be able to manage the disadvantageous effects arising from price increase and economic uncertainty. Notwithstanding that the operators of the construction industry have become much more careful due to the increase in the prices of basic materials, raw materials and energy, taking account of our contracts with qualified customers, we rely on stable, reliably sales revenues in 2022 and 2023 as well" - said Tamás Vida, CEO of KÉSZ Holding Zrt.
According to the CEO, it is of key importance from the point of view of the future of construction industry on the longer run that the capacities established in recent years, so their role in economic growth remain.
Extension of resources and international expansion continue
The objective of KÉSZ Group is to increase its capacities continuously and to strengthen further its international presence. To this end, last year the company issued corporate bonds two times in the framework of the Growth Bond Program of the Central Bank of Hungary in a nominal value of 22 billion forints and 11 billion forints. The new capital of 11 billion forints is spent by KÉSZ Group first of all to extend its construction capacity and to enhance efficiency, as well as to extend its real estate portfolio.
Besides, Tamás Vida said that KÉSZ Group would like to involve new capital in the last quarter of this year in the framework of issue of green rated bonds or extension of long-term loans - the purpose of the transaction is partial financing of real estate development projects. Namely, the new resources received would strengthen the international presence of KÉSZ Group and diversification of the activities, more specifically they could cover the real estate development projects in Serbia and Romania.
Extension of resources and enhancement of the foreign market activity are supported also by the fact that the company acquired a majority (90 per cent) share in FRONTAL Holding Zrt. Owing to the transaction, a dominant operator has come into being not only in the domestic but also in the aluminum-glass facade technology market. By this step KÉSZ Group is capable to provide an even more complex service on the international, mostly on the Western and Northern European markets.