Revenue generated in the reporting period was significantly affected by a 13% decrease in the LME lead price denominated in PLN as compared to the same period last year. The downward trend in lead prices has continued since the beginning of this year. In addition, the achieved revenues were affected by the lower volume of goods and materials sales planned for the given year, contrasted with the same period last year, which translated into a decrease in revenues at PLN 1.9 million.
In the first half of 2019, the operating result was impacted by a gross margin on sales, which was down by PLN 9 million caused by a significant decrease in lead prices y-o-y, which was not fully offset by the prices of purchased raw materials and more cost-effective structure of inputs for production.
In addition, in recent months, in accordance with the adopted strategy, we have continued initiatives aimed at simplifying the Capital Group structure by starting the process of merging the subsidiary Speedmar with Orzeł Biały.
“We concluded the first half of this year with a positive result in a difficult market environment. Thanks to implemented standards, efficiency and effectiveness of our Factory as well as the leading market position and brand, we are prepared for the challenges related to market volatility. – said Michael Rohde Pedersen, President of the Management Board of Orzeł Biały.
In the reporting period, in connection with the ongoing proceedings before UOKIK (Office of Competition and Consumer Protection), the Company received notice about the extension of the deadline for signing of the Agreement Precedent until this December 31. In the event of successful performance of the agreement, ZAP Sznajder Batterien will indirectly acquire a majority stake in the Company.
“The result of the ongoing proceedings before the Office of Competition and Consumer Protection will have an impact on further strategic decisions regarding the development of the Company. However, regardless of the outcome of the proceedings, we will continue our business activities for the sake of the environment and maintaining the highest quality standards.“- said Michael Rohde Pedersen, President of the Management Board of Orzeł Biały.
