FEERUM – a leading manufacturer of comprehensive grain elevators in Poland, with a strong position on export markets, has published the results for 2019. Revenues have increased by 88.7% and reached a new record of nearly 243 million PLN. The results at other levels were also the highest in the Company’s history. Consolidated net profit amounted to 18.6 million PLN, i.e. increased by nearly 148%, and operating profit amounted to 21.3 million PLN, i.e. increased by 232.3%. EBITDA increased by 98.7% to 31.6 million PLN.
Revenues from the Ukrainian market had a positive impact on sales in 2019, where the main recipient is EPICENTR K LLC, with which FEERUM signed contracts in the fourth quarter of 2018. Implementation of exports within the first of the contracts from EPICENTR K LLC lasted 8 months in 2019 and was successfully completed, while the implementation of the second began in the fourth quarter of 2019, so its further positive impact on the achieved financial results will also be visible in 2020.
The current order portfolio amounts approximately 278 million PLN and includes 27 contracts. In turn, the potential portfolio of contracts for 2020/2021 covers 244 million PLN, where the potential of clients awaiting EU funding and having a building permit is about 37.6 million PLN.
We are very pleased with the results of 2019, which were record-breaking in the Company’s history and are the result of intensive efforts to strengthen our international presence. In 2020, we continue Ukrainian contracts, the Tanzanian contract and we acquire further orders. We believe that subsequent contracts in Eastern Europe are only a matter of time. Potential clients of FEERUM appreciate our approach to business and huge commitment, and what’s more, they are sure that we know how to implement, finance and secure large-scale contracts – said Daniel Janusz, CEO of FEERUM S.A.
In 2019, exports accounted for 86.1% revenues. The value of foreign sales in this period was 209 million PLN. Ukraine was the main export market (184.8 million PLN). Tanzania came next (22.6 million PLN), and Lithuania was third trading partner (1.3 million PLN). FEERUM also sold, among others in Hungary, Romania and other countries. The Group intends to develop operations on new, promising markets focused on agricultural production and processing.
The implementation of the Tanzanian contract has been extended due to lengthy acceptance procedures by the Tanzanian institutions participating in the project. As far as production is concerned, the Tanzanian contract is completed, as well as completing and sending the last deliveries to Africa. Ground and foundation works are advanced, steel structures are being assembled in parallel. According to the original assumption, works are carried out simultaneously in each of the five locations.
Before us, as well as before many companies in Poland and around the world, there are big challenges related to the impact of coronavirus on our operations. We quickly responded to pandemic restrictions by taking all actions to minimize the risk to our employees and coworkers, while maintaining business continuity in all areas. At the current stage of the epidemic, we have not noticed the negative impact of the coronavirus on the value of the Company’s financial and non-financial assets, delivery or sale of our products. I believe that thanks to record results for the past year we are prepared to meet the challenges that may appear this year – added Daniel Janusz, CEO of FEERUM S.A.