Revenue of PLN 72 million after the first three quarters of the year
14 November 2013
The LUG S.A. Capital Group achieved revenue on sales in the first three quarters of the year at the level of PLN 72 million, therefore improving the last year's result by 2 per cent. This is a result of the sixth quarter with export growth. Unfortunately, decrease of local revenues and postponing certain contracts in time encumbered profitability of the company and forced the Management Board to adjust the forecasts for 2013.
LUG completed another accounting period with positive result. In the third quarter of 2013, the capital group reached PLN 25.9 million of revenue on sales and PLN 853 thousand of profit on operating activities. EBITDA was shaped at the level of PLN 1.68 million and the net profit amounted to PLN 583 thousand. The result for the third quarter was positively affected by over 10 per cent dynamics of export revenues annually. Negative impact came from the local market.
In the cumulative approach, after nine months of 2013, the consolidated revenue on sales of the LUG S.A. Capital Group amounted to PLN 71.9 million and was by 2 per cent higher than in the same period in 2012. Nearly 55 per cent of the revenues come from the sale of lighting systems and fixtures of the LUG brand on the foreign markets. In the period from 1 January to 30 September 2013, EBIT reached the level of PLN 1.81 million and EBITDA - PLN 4.15 million. Those levels affected the consolidated net profit, which amounted to PLN 1.14 million after three quarters of 2013.
Macroeconomic data in the third quarter of 2013 confirmed the forecasted improvement of economic trends, however the rate and scope of those changes in the third quarter of 2013 were lower than the expectations from the beginning of the year. Although the changes were positive, they were still weak in stimulating the construction industry, maintaining the conditions of operation for the companies from the professional lighting techniques sector at an unsatisfactory level.
| "Every day, we attempt to respond to the challenges faced by our company and the entire lighting sector, so that they can be transformed into the best financial results. However, unfavourable economic conditions, postponing of important investments and the incurred operating expenses did not allow us to reach the satisfactory levels of income. Therefore, as the Management Board of the parent company, we have verified the assumptions of financial estimations and made a difficult decision of adjusting the forecasts for the consolidated results in 2013" explains Ryszard Wtorkowski, the President of LUG S.A. Management Board. |
Pursuant to the adjustment, the sales revenue of the LUG S.A. Capital Group in 2013 will amount to PLN 103.1 million, EBIT will be shaped at the level of PLN 2.59 million, EBITDA will reach the level of PLN 5.76 million and the net profit will amount to PLN 1.40 million.
| "Regardless of worse third quarter, the LUG S.A. Capital Group still recognises positive result after nine months of the year. We still wish to exceed the level of last year's revenue on sales. The situation in the lighting sector forced us to adjust the forecasts, but we are going to perform the contracts, which were postponed and observe the costs discipline in order to meet the declared amounts of the consolidated results" adds Ryszard Wtorkowski. |
The LUG S.A. Capital Group is among the most dynamically developing Polish lighting companies. In the analysed period, it took a number of activities ensuring dynamic development presently and in the future. Such activities as establishing a new subsidiary in Great Britain or participation in the international fairs resulted in 10 per cent increase of export revenues. The third quarter of 2013 means also completion of one of the most important investment processes in the company, namely development of the production hall, and launching of the new line manufacturing electronic components. The successes of LUG in the recent quarter include also the award for the Best Annual Report 2012 on the NewConnect market.