The FAMUR Group, one of the key producers of mining solutions and bulk material handling systems in the world, recorded good results in 2018. Revenues over the past 12 months increased by 53% and reached PLN 2.229 billion at the end of 2018 with the Group's net profit of PLN 220 million. Good results are the effect of successful process of integration with the KOPEX Group, consistent implementation of the FAMUR Group's strategy and favorable market conditions.
Revenues from the domestic market increased from PLN 912 million in 2017 to PLN 1,491 million in 2018. Exports to foreign markets increased by 35%, from PLN 547 million in 2017 to PLN 738 million in 2018. The most important contracts acquired outside of Poland in 2018 were including but not limited to the delivery of longwall systems to Russia of EUR 22 and 23 million (two contracts), a longwall system to Kazakhstan for a total amount of EUR 19 million or a Mikrus system to China of EUR 17 million.
‘Very good results in 2018 confirm the well-defined strategic goals and effectiveness in their implementation of the entire Group, as well as completed integration process of FAMUR and KOPEX. We have reached a record level of foreign sales in the amount of almost PLN 740 million, that is 35% more than in 2017. Since the end of the third quarter of last year until today, we have signed a number of significant export contracts that will be implemented in 2019’- emphasizes Mirosław Bendzera, CEO of the FAMUR Group.
The Underground segment generating the largest revenue in the Group has recorded a growth by 38% y/y from PLN 1.018 billion to PLN 1.407 billion. The segment has also improved its profitability. The increased turnover is the result of positive market conditions in domestic mining, as well as the integration of assets of the acquired Kopex Group with the FAMUR Group.
The Surface segment has also recorded an increase in revenues. They grew by 27%, from PLN 292 million in 2017 to PLN 371 million in 2018. The gross margin on sales slightly decreased by 3 pp, due to high increase in costs of materials, labour and cooperation observed in the industry. In connection with the assumptions of the Group’s five-year strategy, FAMUR intends to maintain its established position in the electromechanical industry, particularly in projects related to open-cast mines, power industry, port development and trans-shipment terminals.
In the Mining Services segment, there was a significant increase in revenues and profitability resulting from the intensification of activities aimed at opening new deposits in Polish mining companies. The revenues reached PLN 301 million in 2018 compared to PLN 108 million in the second half of 2017, that is the period starting from which the data after the Kopex Group acquisition were consolidated. The gross margin on sales also improved considerably, increasing from 7% to 12% y/y. The construction of the Grzegorz Shaft for Tauron Wydobycie was the key factor for the increase in revenues and margins.
The smallest and also the youngest segment of the FAMUR Group’s activity is Elektryka. It is intended to design and manufacture electrical equipment for mining industry, as well as automation of industrial systems. Revenues from this area increased from PLN 41 million in the second half of 2017 (i.e. the period of data consolidation after the acquisition of KOPEX) to PLN 150 million in 2018. Gross sales margin increased from 27% to 28% y/y.
‘The increase in revenues in all operating segments of the Group is the result of consistent implementation of the strategy, continuous improvement of the operating model and continued good economic situation on the energy sources market. The accompanying improvement in margins shows that the Group competently manages its operational costs and flexibly adapts to the market changes’- sums up Mirosław Bendzera, CEO of FAMUR SA.