■ Slowdown on the electric power market. According to data collected by the Union of Electrotechnical Distribution Employers SHE, in 2Q23 the electrotechnical wholesale sales fell by 4%. Investors curbed their projects which is corroborated by a low number of construction permits issued
■ Growth via acquisitions. To date, Grodno carried out 11 acquisitions which accelerated the growth pace of revenues and profits. We consider the Company’s takeover transactions as successful and value-adding and believe we may see more attractive acquisitions in the future given favorable pricing of smaller competitors.
At the moment, Grodno’s priority seems to be its market position strengthening, albeit the pressure exerted by the competition is strong.
Grodno estimates its market share at 12-13%. After the acquisition of TIM and Kaczmarek Electric the Würth Group’s share in the Polish market reached c. 25%.
The Company intends to participate in the market consolidation taking advantage of the slowdown which should favor this kind of activities and help strengthen the Company’s position in the future. Grodno plans more acquisitions.
There are quite a few enterprises on the market generating revenues below PLN 100 million and troubled by both, diminishing earnings and succession issues.
