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Market Slowdown Challenges Grodno's Growth: Exploring Strategies for Market Position Strengthening Through Acquisitions

Market Slowdown Challenges Grodno's Growth: Exploring Strategies for Market Position Strengthening Through Acquisitions
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■ 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.

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There are quite a few enterprises on the market generating revenues below PLN 100 million and troubled by both, diminishing earnings and succession issues.

 

market slowdown challenges grodno s growth exploring strategies for market position strengthening through acquisitions grafika numer 1market slowdown challenges grodno s growth exploring strategies for market position strengthening through acquisitions grafika numer 1

 

 


GPW’s Analytical Coverage Support Programme 3.0

GPW’s Analytical Coverage Support Programme 3.0

The Warsaw Stock Exchange's (GPW's) Analytical Coverage Support Programme 3.0 supports investment firms in drafting analytical reports which are financed by GPW. The objective of the Programme is to improve the availability of research covering less liquid companies, facilitating investors' informed investment decisions based on a reliable independent source of issuer information. Eligible to participate in the Programme are companies listed on the GPW Main Market (other than WIG20 participants) and on NewConnect. The Programme covers up to 50 issuers.

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