The revenues of the Grenevia Group in the first quarter of 2023 amounted to PLN 370 million, recording a 42% increase compared to the same period in 2022. The group made a net profit of PLN 43 million. This result is 19% higher than in the first quarter of last year, while EBITDA stood at PLN 104 million, 13% higher than a year before. Key financial indicators reflect the impact of all of Grenevia’s segments on its business operations.
Grenevia Group’s financial results in Q1 2023
The 42% increase in revenues in the first quarter of 2023 to 370 million zlotys is primarily due to the contribution of the new e-mobility segment (IMPACT) and higher revenues in the FAMUR, power generation and distribution (Elgór+Hansen) and PV (PST) industries.
This translated into an improved EBITDA level, which amounted to PLN 104 million in Q1 2023 (an increase of PLN 12 million y/y) and its profitability was 28%. This was also reflected in increased net profit, which reached PLN 43 million in the first three months of this year, compared to PLN 36 million in the comparable period of 2022.
As an active investor in green transformation projects, Grenevia is developing the activities of four business segments. These include: large-scale photovoltaics and PV solutions for business concentrated in Projekt Solartechnik; battery systems, power storage and electromobility as part of IMPACT Clean Power Technology; modern automation equipment for the industry, as well as solutions for the power distribution industry as Elgór+Hansen. Technologies and products for the mining and wind power industries will are being developed within the FAMUR brand.
Summary of Grenevia Group segment operations in Q1 2023
The e-mobility segment – IMPACT – focused mainly on obtaining new contracts, expanding the customer portfolio and ensuring the stability of supply of key components. GigaFactoryX’s investment included the purchase of a property with production and warehouse halls, the start of renovation and adaptation works, and the signing of a contract for the delivery of a semi-automatic production line for battery systems. Planned capital expenditures for the implementation of this project are estimated at about PLN 120 million. At the same time, the range of solutions for large-scale energy storage was expanded, and work was carried out on the development of hydrogen cell-based energy storage technology.
In the photovoltaic segment, PST focused mainly on the intensive development of its project portfolio both in Poland and foreign markets, the successive construction of more PV farms and the diversification of its project portfolio into wind power and energy storage. At the same time, the process of offering packages of finished PV projects to the market and selling PPA/cPPA energy from working PV farms continued. At the end of March 2023, the company’s portfolio of PV projects had grown to nearly 4.1GW (at various stages of development), including more than 0.5GW of projects under development in the German market.
Photovoltaic farms connected to the power grid reached a total capacity of 118 MW, farms under construction total 106 MW. Meanwhile, the aggregate capacity of PV, energy storage and wind power projects with connection conditions obtained amounted to about 1.3GW during the period.
Within the power generation and distribution industry, Elgór+Hansen completed deliveries of more transformer stations for PV farms and industry, and also benefited from stabilizing demand in the mining sector. Within the framework of synergies in the Grenevia Group, an agreement has been concluded with Projekt Solartechnik for the supply of transformer stations for photovoltaic farms worth about PLN 31 million. As of the end of March 2023, the segment’s total order backlog amounted to PLN 89 million, of which about PLN 70 million was the order backlog for the FAMUR and PV segments.
In FAMUR segment for mining machinery, stabilisation was evident in both foreign and domestic markets, and FAMUR continued to concentrate on winning new orders and handling increased volumes in the aftermarket area – including new shearers and roadheaders leases. In the field of component overhaul and service for wind turbines, more upgraded gearboxes were put into service and more were obtained for overhauls. At the same time, the range of services provided was expanded, including the repair of inverters and control systems, as a result of which orders were obtained from new partners. At the end of Q1 2023, the total orders portfolio, understood as deliveries of machinery and equipment and leases according to the terms of the contracts, amounted to approximately PLN 827 million.
In the coming periods, Grenevia will focus on developing new segments and scaling their operations as quickly as possible. In the PV segment, it will focus on implementing new strategic directions, in e-mobility it will continue to build GigafactoryX, increase its order backlog, and further diversify its supply chain. Meanwhile, the electric power area will continue to strengthen its order book in the mining sector and develop its offerings for renewable energy. In turn, the goal for the FAMUR segment is to consistently obtain new orders in current and new markets, strengthen after-sales service, continue to standardise the mining machinery fleet, and develop the offer of repair and maintenance services for wind turbine gearboxes.