After three quarters of 2023, Mangata Holding reported PLN 748.6 million of consolidated sales revenues, which is a decrease of 6.3% y/y. Due to reduced market demand, all three key segments of the Group recorded a decline in revenues. The presented sales revenue values were also influenced by price pressure (resulting from lower prices of raw materials and other materials and reduced energy allowances, especially gas-related), as well as lower exchange rates. Profitability on gross sales in the reporting period amounted to 21.2%. The Group’s EBITDA result for the three quarters of 2023 amounted to PLN 100.1 million compared to PLN 133.9 million in the corresponding period of 2022. However, the net profit in the period January-September this year amounted to PLN 49.4 million, which means a decrease of 39.2% y/y.

– The presented results are an effect of the pressure of lower demand on the market. It is also worth paying attention to the very high reference base from 2022. The same period last year was record-breaking for the holding. Unlike the previous period, we experienced lower sales volume levels, the decline of which was particularly noticeable in the second and third quarters – said Leszek Jurasz, president of the management board and general director of Mangata Holding – We operate in specific conditions, an unstable economy resulting from high inflation and changing geopolitical conditions. We make a number of decisions aimed at improving operational efficiency. This concerns the merger of companies in the automotive components segment and the reorganization process in the valve and industrial automation segment. All this is intended to increase the Group’s competitiveness and adapt it even better to the dynamic changes taking place in the global industry – added the president.

The Holding maintains its expectations regarding the closing of this year, which were communicated during the presentation of the results of the previous quarters.

– We assume revenues of approximately PLN 940-960 million, an EBITDA margin of 13-14% and a net profit margin of 6-7%, said Kazimierz Przełomski. At the same time, the Vice-President signalled – Factors that may affect the levels indicated above include the implementation of sales assumptions – especially the “December effect”, uncertainty as to the exchange rates – especially EUR and USD, which will affect the valuation of settlements in foreign currencies, the effects of optimization initiatives implemented in companies and possible compensation for electricity prices implemented still in 2023.

Despite the unstable external environment, the Mangata Holding Group after three quarters of this year achieved solid financial results. In the coming months, the holding expects the impact of subsequent, successively implemented optimization projects.

– The effects of the projects will also translate into 2024. The Group’s companies are in the process of developing budgets for next year. We will continue to implement key strategic assumptions for individual segments, and we will place particular emphasis on the optimal use of available production capacity – assured President Leszek Jurasz – In the long term, market demand in all operating segments of the Group may be affected by the economic slowdown, which is increasingly visible among our partners in Western Europe. One of the ways to counteract the negative consequences of the global slowdown will be further diversification of suppliers and diversification of recipient and customer markets. Both in Poland and abroad – concluded the president of the management board.