Photo by ALEKSANDR EVSTAFEV
A recent report has shown a huge rise in profits for construction firms in Poland in the past year. The report, entitled The Construction Market in Poland 2019-2025, and published by research firm Spectis, has shown that, in 2018, large and medium-sized construction firms generated a total net profit of 4.3 billion zloty (ca. €1-billion). This compares with 2.9 billion zloty the previous year.
The Spectis report also reveals that almost half the 2018 profit (2.03 billion zloty) was made by companies specialising in building construction projects, which are beneficiaries of the upswing in residential construction.
Civil engineering companies also fared well, showing robust performance in terms of profits in 2018 which were reported at around 1.44 billion zloty.
Specialist construction companies, such as those involved in installation and finishing projects, saw around 0.83 billion zloty in net profit.
While the soaring price of building materials and higher labour costs in 2018 did have a large impact on the general contracting sector, it also benefitted from the fact that these rising costs went hand in hand with a substantial hike in revenues, on the back of a significant number of orders. On the results of this was that companies were able to some degree able to reduce cost-to-revenue ratios to just under 96%, which saw a resulting improvement of net sales margins to 3.7%.
Spectis construction Poland
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