Our comment on company results
Public companies are now announcing annual financial results. As in “PUŁAWY” Group the financial year does not correspond to the calendar year, I have prepared a quick summary of 2012 on my own. It turns out that in this period “PUŁAWY” produced a net profit of 488 million PLN with annual revenue at 3,982 million PLN. The revenue from sales of products, goods and resources was 11% higher than in 2011.
How do we match up to the competition?
A comparison of company results with foreign enterprises from the sector is a humbling experience. Revenue of our company amounts to 8,5% of annual revenue of Yara, 10,7% of annual revenue of DSM and 21,0% of annual revenue of CF Industries. However, we may be satisfied about efficiency indicators, albeit slightly worse than in 2011. Return on Sales (ROS) of “PUŁAWY” in 2012 was 12% (as compared to 15% in 2011), but it was higher than in Yara Group (13% in 2012, 16% in 2011) and DSM (3% in 2012, 9% in 2011).
The best result was achieved by CF Industries with ROS at 32%, an increase from 29% in 2011. We ought to remember, however, that this American company has got access to natural gas which is four times less expensive that the price we pay in Poland.
In our company Return on Capital Employed (ROCE) was 19% in 2012. Yara’s ROCE was 17%, while in DSM this ratio stood at 5%.
For the first time in a long period, market value ratio exceeded the net worth of the company and reached 1,09.
The key to business efficiency
The results of the model of managing assets adopted in the company appear very effective. At the time when investors do not show much confidence in chemical sector companies from Central Eastern Europe, we are able to offer shareholders attractive return on investment as well as secure safe and good remuneration for our employees.