As expected by the Management Board, 2021 brought an improvement in the UNIBEP Group’s performance compared to 2020. Sales increased, albeit slightly, by around 2%. There was an improvement in net profit of approximately 27%. In terms of segments, nearly every segment recorded a growth in revenue growth compared to 2020. A slight decrease in sales was reported in residential and commercial construction.
The residential and commercial construction segment decreased its revenue compared to 2020 mainly as part of external sales (outside the Unibep Group), including those made as part of the export of services in eastern markets. However, sales to the company’s own developer, namely Unidevelopment Group companies, increased. Gross profit on sales, despite a decline in value and percentage terms, continued to be above 6%.
The infrastructure segment maintained sales relative to the previous year. Gross profit on sales, however, was lower in terms of amount and percentage. Earlier, i.e. in 2020, important contracts signed in earlier periods – highly profitable contracts – were implemented and completed. The current implementation partly illustrates market realities and the lower profitability of the segment. New contracts acquired in the “design and build” formula will affect the profitability of the business in future periods.
Once again, a significant increase in sales and at the same time with a much higher gross profit on sales was recorded by the property development business segment. Gross profitability on sales was at a similar level as in the previous year, i.e. 23%. Some of the projects and their effects are disclosed in financing activities – this applies to projects carried out as joint ventures. The increase in revenue and profit was also due to a change in the presentation of the Fama development project – originally recognised with minority rights. However, once the full voting rights have been identified, we present the project in full.
The efficiency of the modular construction segment in the performance for 2021 is lower than the assumptions and its capabilities. However, with significantly higher sales compared to 2020, a positive gross profit on sales was achieved. Despite the Covid-19 restrictions, the production of modules was not suspended. The company incurred costs related to the pandemic – these related to the factory, construction and logistics (purchasing, transport) areas. In 2021, the company identified constraints in the availability of materials, experienced a very dynamic increase in the prices of strategic materials used during production – structural timber. Recently, it has also had to contend with rising transport prices and closed markets (Norway). The company is happy to have been able to implement its strategy of geographical diversification into theNorwegian, German, Swedish and Polish markets.
Liquidity ratios are at a safe level. The Group’s situation with respect to cash flow is stable.
The 2021 performance shows stability in the Group’s general administrative costs, although they increased year-on-year. The systematic approach to their planning and control makes them predictable. The general administrative costs to revenue ratio is over 3.5%.