In 2023, the Gobarto Group generated over PLN 182 million in EBITDA and PLN 3.42 billion in sales revenues. The increase in pig prices in the first half of last year translated into good financial results of the entire Group.
Price increases in the first half of the year caused by the shortage of livestock
On the internal market of the European Union, prices of live pigs increased in the period from January to June last year. This phenomenon was primarily caused by a shortage in the supply of pigs for slaughter in Western Europe. However, since July last year prices began to decline due to lower feed prices. In December 2023, the average price of class E slaughter pigs in the EU was EUR 212.02/100 kg of chilled slaughter weight, i.e. about 4%. higher than in December 2022, according to Gobarto.
“In Poland, live pig price quotations usually reflect the level of the average EU price. For this reason, during the first six months of 2023, the price of live pigs was in an upward trend, but from July it began to decline. Last December the average price of live animals was PLN 7.25/kg and was approximately 21 percent higher. lower than in June 2023.” – indicates the company.
According to information from the Central Statistical Office, as of December 31, 2023, the pig population in Poland was only 9.8 million, i.e. only 1.5%. more compared to the end of December 2022 and by 3.5%. more compared to the end of June 2023. The low level of pig population that has been present for several years is the result of the low profitability of its production.
Declines in Polish pork exports
According to preliminary data from the Ministry of Agriculture and Rural Development, Polish exports of pork in the period from January to December 2023 showed a decline of approximately 13% compared to the previous year. – from 352 to 305 thousand tone.
A decline in exports was recorded for key recipients:
- USA (50 percent),
- Slovakia (22%) and
- Hong Kong (18%).
The markets for which growth was recorded are:
- Germany (40%) and
- Italy (6%).
Imports for the entire year 2023 decreased by 12%. compared to the same period of the previous year.
In the Gobarto Capital Group, export revenues in the reporting period amounted to PLN 317.3 million compared to PLN 270.7 million in 2022, but their share in the structure of total revenues decreased slightly and amounted to 9.28%.
The Gobarto Group achieved good financial results in 2023.
In a dynamic market environment, the Gobarto Group achieved good financial results in 2023.
“Consolidated sales revenues increased by as much as 29.5% year on year. to PLN 3.42 billion, and EBITDA reached PLN 182.20 million (y/y increase of 52.6%). The consolidated net result amounted to PLN 96.71 million, with operating profit of PLN 129.70 million,” the company reports.
The area of activity that had the greatest impact on the Group’s results was the Pigs segment. Sales revenues from this segment increased by as much as 35.5% year on year. to the value of PLN 566.45 million, with operating profit of PLN 101.69 million and EBITDA profit of PLN 116.98 million.
– The reduction in the pig population in Poland resulted in an increase in prices, which translated into the profits generated by the Group. Moreover, the situation was improved by the fact that the breeding production in which we had invested in recent years was profitable – said Marcin Śliwiński, president of the management board of Gobarto SA
Implementation of the Gobarto 500 program
It is worth mentioning that despite high investment costs, the Group systematically implements the Gobarto 500 program. Currently, 29 livestock facilities have been built under the program together with breeders. More construction works are planned and more people will be recruited for the project in the following quarters.
Profitable Meat and cold cuts segment
The second area of activity that had the greatest impact on the Group’s results was the Meat and cold cuts segment represented by Gobarto SA. In 2023, its sales revenues amounted to PLN 3.37 billion (y/y increase of 30.7%), with 62 PLN .09 million of EBITDA and PLN 26.52 million of operating profit. The good results of this segment are due to the efficiently operating Gobarto distribution network, despite a shrinking market.
– Despite the smaller amount of pork on the market and price pressure, the results in this segment are very satisfactory. This was due to both very good results in the distribution and slaughter segments. In the area of its own distribution network, the increase in sales volume translated into higher EBITDA. We also recorded volume increases in the slaughter segment. The slaughter level in 2023 compared to 2022 increased by 27%. and amounted to 1.2 million pieces – added Marcin Śliwiński.
Gobarto with its responsible business strategy
In addition to financial reports, the Gobarto Group also published a non-financial report – Sustainability Statement, which is consistent with the CSRD directive and ESRS standards, anticipating the regulations that will be the basis for reporting for 2024. At the same time, the management board of Gobarto SA adopted a responsible business strategy in which it informs about its environmental, social and corporate governance obligations.
– For us, 2023 was a period of intensive preparations for adaptation to new, advanced standards established by the European Commission. He showed us the need to change the way we think about our organization and the activities we conduct. Close cooperation between our management, employees and partners has enabled us to develop a climate and ESG strategy. These two documents describe our long-term commitments to strengthening our commitment to society and the environment. They are not only the foundation of the current strategy, but also indicate the path of our future activities in pursuit of sustainable development – said Katarzyna Goździkowska-Gaztelu, vice-president of the management board of Gobarto SA
