LUG S.A. Corporate Group increases revenues and margins

II quarter 2015 – LUG S.A. Corporate Group accomplished its goals. Intensive works on development of technical facilities and R&D, as well as expansion of sales network did not hinder improvement of results in II quarter 2014 and increase of revenues by 8,15%, EBITDA by 44,61% and EBIT by 79,12%.

The second quarter 2015 proved to be another period of growth in the history of LUG S.A. Corporate Group. Sales revenues in this period equaled PLN 27 609,82 thousand. As compared to the second quarter 2014 when the revenue was PLN 25 529,12 thousand, this result means there was a revenue increase by 8,15%. The growth of margins must also be emphasized because it translates into a higher profit on sales (gross). In the second quarter, the margin increased by 38% when we compare y-o-y. Also, the profit on operating activities grew to the amount of PLN 1158,29 thousand, as compared to PLN 646,34 thousand in the last year. The increase is 79,21%. In II quarter 2015 EBITDA improved y-o-y by 44,61% to achieve the value of PLN 2 104,24 thousand. The net profit in the second quarter was PLN 1 006,57 thousand, which when compared y-o-y when the financial result was PLN 439,77 thousand, is higher by 128,89%.   

Another significant information is the structure of sales revenues in terms of geographical location. In the second quarter of this year the revenues from domestic sales accounted for over 48% of the revenues in total, whereas export revenues nearly 52%.

- We are active on many markets. By rapid development of our business abroad, we wish to keep on growing and have a competitive advantage. Our strategy has turned out to be a great success – says Ryszard Wtorkowski, the President of the Management Board of LUG S.A. 

In the second quarter, LUG S.A. Corporate Group continued the construction of the research-development center along with the electronics production complex, located in the Lubuski Industrial and Technology Park in Zielona Góra. A new unit is to take over all research and production operations related to LED technology. The first phase of the project is expected to be completed by the end of 2015.

- Construction of another plant with the research and development center along with electronic production complex will provide us with extra production capabilities with regard to LED lighting. In the era of revolution on the lighting market, they soon will be a requisite for existence of all lighting manufacturers. A demand for a new technology will grow with new legal regulations and raised awareness of the market with respect to its benefits – explains Wtorkowski.

If we follow the current product development policy and sales network, we can expect further increases in the quarters to come.