Press Release
Zielona Góra, 7th of February 2013.
LUG passed 100 million PLN revenue threshold and achieved 3,1
million PLN of net profit in 2012
Despite unfavorable economic conditions, the sales revenue of the LUG S.A. Capital Group in 2012
– according to unaudited data – increased by 7,92% to the level of 102 million PLN, thus passing
the 100 million PLN threshold. A significant contributing factor to this increase was export
(+9,95%), but domestic revenue also had a positive dynamic (+5,97%).
Revenue
According to preliminary unaudited data, the LUG S.A. Capital Group’s 2012 revenue on sales
increased by 7,92% to the level of 102 009,98 thousand PLN. The dynamic of the sales revenue
increase on a domestic level reached 5,97%, while in export markets, 9,95%.
Consolidated sales revenue in the IV quarter of 2012 increased by 5,83% to 31 540,32 thousand PLN.
At a quarterly rate, the revenue on sales carried out in foreign markets in the IV quarter of 2012
increased by 21,83%, while revenue on domestic sales in the IV quarter of 2012 dropped by 9,07%.
The year on year increase in revenue and the increase of the total market share in the wake of such
significant economic condition fluctuations and the unpredictable nature of the Polish building
market is considered by the LUG S.A. Management to be positive.
These data show, that the LUG S.A. Capital Group realized 95,74% of the published sales revenue
prognosis. This result was obviously influenced by the macro-economic situation, drastic decreases in
building and installation production in December of 2012 (-21,5% year to year), as well as even more
significant economic slowdown in the building sector in the last month of 2012 (-42% year to year).
The influence of these negative factors on the consolidated financial results was recorded by the
company in December 2012. In the prior months the same revenue dynamic indicators have
invariably pointed at a continuation of the positive trend in realizing our prognosis.
Profitability
The slowdown of the revenue increase in the IV quarter of 2012, especially in the final month,
significantly influenced the LUG S.A. Capital Group’s other financial results. According to preliminary
unaudited data, the operating profit throughout 2012 was 3 148,06 thousand PLN, EBITDA was
6 442,21 thousand PLN, and the net profit reached 3 067,89 thousand PLN. According to those
estimates, the LUG S.A. Capital Group realized 50,74% of the published prognosis on the EBIT level,
66,52% on the EBITDA level and 66,54% in terms of net profit.
The LUG S.A. Capital Group’s profitability in the IV quarter of 2012 was also negatively influenced by
the pressure associated with the economic crisis, as a result of which the wholesale electric
technology market drastically reduced its purchases in the last quarter of the year and a positive
revenue dynamic had to be achieved at the cost of decreased sales margins. Based on the 2010-2011
tendencies regarding the annual highest sales activity in the lighting market in the IV quarter, the
LUG S.A. Capital Group maintained high production resource levels during that quarter, which
generated additionally high fixed costs.
- After three quarters our prognoses were not under any threat, yet the last quarter of the year, which
constitutes the sales peak, surprised us in a negative way – comments Ryszard Wtorkowski.
The issuer published a correction to the prognoses, adjusting the projected positions on the profit
and loss account to the estimated levels of results achieved in the year 2012 and published in the
periodic report.
Perspectives for growth
An indication of the scope of actions taken by the LUG S.A. Capital Group in 2012 are such events, as
the purchase of a plot of land for the construction of a new facility and the decision to commence
production of LED components in the existing facility as soon as the year 2013, establishing a new
subsidiary – LUG do Brazil Ltda. and entering the South American market, as well as establishing a
sales representative in Paris. Those mentioned are only the selected and most important activities.
The trend outlined in 2012 does not give reasons for optimism, however the factors associated to
geographic diversification and expansion strategy on foreign markets, which will be consistently
carried out, is crucial to the development of the LUG S.A. Capital Group.
- We are seeing an improvement in the results even in January 2013, where we managed to achieve
significant increases in revenue. We also maintain readiness to publish the prognosis for 2013 in the
first quarter of the year. We are still fine-tuning its primary goals, but we project a positive dynamic –
explains Wtorkowski.
The Management of LUG S.A. estimates that in 2013 the Brazilian subsidiary will generate its first
revenue. There are already talks regarding the realization of illumination projects for large hotel
networks and investments associated with the World Cup Football Championships.
***
LUG S.A. is a holding company, part of the LUG S.A. Capital Group – a supplier of comprehensive lighting
solutions, one of the largest manufacturer of luminaires in Poland. The Company sells its products in Poland
and several countries around the world. With 20 years of experience, since 2008 the Company with its seat in
Zielona Góra operates as a Capital Group.
The Group is comprised of: LUG S.A., LUG Light Factory Ltd., LUG GmbH, Lug do Brazil Ltda and TOW LUG
Ukraine. Since November 2007 LUG S.A. is traded on the NewConnect market managed by the Warsaw Stock
Exchange. More information: www.lug.com.pl
Contact:
Monika Bartoszak
Investors Relations Manager
Telephone: 510 183 993
e-mail: relacje@lug.com.pl