The Polish Deep Value Week – 2025/20
A Few New Reports, Returns to Profit and Dividend
Companies mentioned
· Bowim (BOW) - Reports Q1 2025 net loss amid weak demand and delayed investments
· Dębica (DBC) - Proposes PLN 4.23 per share dividend from 2024 profits & posts Q1 net profit of PLN 42.9m after strong sales rebound
· Efekt SA (EFK) - Delivers strong Q1 2025 profits despite y/y revenue drop
· Izostal (IZS) - Reports stable Q1 2025 earnings on sharp sales growth
· KPPD (KPD) - Narrows Losses in Q1 2025 Amid Flat Revenues and Improved Cash Flow
· Lena Lighting (LEN) - Posts Flat Sales and Lower Profits in Q1 2025 Amid Stable Operating Cash Flow
· PA Nova (NVA) - Reports Solid Q1 2025 Growth with Higher Revenues and Profits, Despite Negative Operating Cash Flow
· PEPEES (PPS) - Returns to Profit in Q1 2025 on Higher Starch Sales and Improved Pricing
· Stalprodukt (STP) - Narrows Losses in Q1 2025 Driven by Electrical Sheets Segment Recovery
· Tesgas (TSG) - Reports Q1 2025 Loss Amid Revenue Drop and Contract Margin Pressure
“Graham’s Geiger counter”
Benjamin Graham suggested that one way to measure the valuation of the overall market was to assess the number of net-nets available. When many such opportunities exist, it indicates a cheap market overall, while their absence suggests that the market is expensive. Today’s net-nets, however, are not the same as Graham’s net-nets. Many are un-investable being Chinese RTO’s, loss-making biopharma’s etc. But we do think it is interesting to follow this number over time, and what percentage of total listed stocks qualify as a “naked” net-net without any type of quality adjustments to make them investable. Below is a net-net screen from Stockopedia.
Bowim (BOW) - Reports Q1 2025 net loss amid weak demand and delayed investments
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Bowim S.A. (WSE: BOW) released preliminary figures for Q1 2025, showing consolidated net sales of PLN 444 m, down PLN 16.5 m year-on-year. Operating profit fell to PLN 3.4 m (–PLN 4.4 m y/y), while the group posted a net loss of PLN –1.9 m compared to a profit of PLN 3.6 m in Q1 2024. Management attributes the decline to prolonged weak demand, delayed public investment rollouts, and high interest rates restraining construction activity. As a result, Bowim was unable to secure sufficient margins in the context of ongoing weakness in the steel and steel-consuming sectors. Final results will be disclosed in accordance with the reporting schedule announced in January 2025.
Dębica (DBC) - Proposes PLN 4.23 per share dividend from 2024 profits & posts Q1 net profit of PLN 42.9m after strong sales rebound
Tire Company Dębica S.A. (WSE: DBC) announced that its Management Board has recommended a dividend distribution of PLN 58.4 m (PLN 4.23 per share) from the 2024 net profit of PLN 77.8 m. The remaining PLN 19.4 m would be allocated to reserve capital for potential future use. The proposed record date is September 22, 2025, with payment scheduled for December 17, 2025—reflecting the seasonal nature of the company’s operations. The proposal will now be submitted to the Supervisory Board for evaluation.
Tire Company Dębica S.A. (WSE: DBC) reported a net profit of PLN 42.9 m in Q1 2025, a sharp turnaround from a net loss of PLN 65.8 m in Q1 2024. Net revenues surged 37% y/y to PLN 749.6 m, while operating profit came in at PLN 42.6 m versus a loss of PLN 90.4 m last year. Gross profit reached PLN 53.4 m. Despite the improved earnings, cash flow from operations was negative at PLN -189.5 m, primarily due to working capital changes. Total assets stood at PLN 2.36 bn with equity of PLN 1.41 bn. Earnings per share amounted to PLN 3.11 versus a loss of PLN 4.77 per share in the same period last year.
Efekt SA (EFK) - Delivers strong Q1 2025 profits despite y/y revenue drop
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Efekt SA (WSE: EFK) reported consolidated net profit of PLN 2.95 m in Q1 2025, down from PLN 3.49 m y/y, despite a 57% decline in consolidated sales to PLN 7.6 m (vs. PLN 17.7 m). Operating profit rose to PLN 5.21 m (vs. PLN 3.21 m), helped by a sharp drop in operating expenses. Net cash flow from operations was positive at PLN 2.25 m, though total cash flow was negative PLN 0.96 m due to outflows from financing and investments. Equity stood at PLN 124.6 m with book value per share at PLN 24.94. The standalone unit (Efekt SA) posted Q1 net profit of PLN 2.72 m on sales of PLN 7.28 m.
Izostal (IZS) - Reports stable Q1 2025 earnings on sharp sales growth
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Izostal S.A. (WSE: IZS) posted consolidated net profit of PLN 3.25 m in Q1 2025, unchanged y/y, on a sharp increase in sales to PLN 329.7 m (up 92% y/y). Operating profit rose to PLN 9.29 m (vs. PLN 6.86 m), while net cash from operating activities was negative at PLN -3.7 m, though a significant improvement from -15.8 m a year earlier. Cash flow from financing also turned negative (PLN -9.0 m vs. +17.7 m y/y). Equity stood at PLN 262.2 m with total assets reaching PLN 797.8 m. Earnings per share were steady at PLN 0.10.
KPPD (KPD) - Narrows Losses in Q1 2025 Amid Flat Revenues and Improved Cash Flow
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Koszalin Wood Industry Company (KPPD) reported first-quarter 2025 revenues of PLN 88.8 million, nearly unchanged from the same period last year (PLN 88.1 million), while narrowing its net loss to PLN 5.9 million from PLN 8.7 million in Q1 2024. Operating loss improved to PLN 4.4 million (vs. PLN 8.3 million), reflecting ongoing cost containment efforts. Cash flow from operations turned positive at PLN 0.8 million, compared to an outflow of PLN 3.3 million a year earlier, contributing to a slight overall increase in cash. Despite these improvements, equity declined to PLN 103.8 million (from PLN 109.7 million at year-end), and the company continues to carry a high level of current liabilities (PLN 65.1 million). Earnings per share stood at -PLN 3.65, while book value per share fell to PLN 63.98 from PLN 67.63.
Lena Lighting (LEN) - Posts Flat Sales and Lower Profits in Q1 2025 Amid Stable Operating Cash Flow
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Lena Lighting S.A. reported consolidated Q1 2025 revenues of PLN 33.0 million, nearly flat compared to Q1 2024 (PLN 33.4 million), while net profit declined to PLN 0.1 million from PLN 0.5 million in the prior year. Operating profit fell to PLN 0.3 million (vs. PLN 0.6 million), and gross profit dropped more significantly to PLN 0.2 million from PLN 0.7 million, indicating margin pressure. Net cash flow from operating activities improved modestly to PLN 2.3 million, while investing and financing cash flows remained negative, resulting in a total cash outflow of PLN 0.4 million. Equity decreased slightly to PLN 110.3 million from PLN 113.3 million at year-end, and book value per share declined to PLN 4.43.
PA Nova (NVA) - Reports Solid Q1 2025 Growth with Higher Revenues and Profits, Despite Negative Operating Cash Flow
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In the first quarter of 2025, PA Nova S.A. reported strong financial performance with consolidated revenues rising to PLN 60.5m (up from PLN 42.8m in Q1 2024), and net profit nearly doubling to PLN 6.5m versus PLN 3.6m a year earlier. Operating profit reached PLN 11.3m, and gross profit increased to PLN 7.4m. Despite this, the group recorded a negative operating cash flow of PLN -7.9m, primarily offset by positive financing cash flows of PLN 3.5m. Total assets grew slightly to PLN 956.9m, and equity rose to PLN 506.3m. Book value per share increased to PLN 50.63. At the standalone level, net profit came in at PLN 3.4m, also showing a year-on-year improvement. The overall cash position deteriorated modestly, with total cash flow for the group at PLN -3.9m.
PEPEES (PPS) - Returns to Profit in Q1 2025 on Higher Starch Sales and Improved Pricing
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PEPEES S.A. reported a notable turnaround in the first quarter of 2025, with consolidated sales revenue increasing to PLN 72.1m, up from PLN 52.4m in the same period last year. The Group posted an operating profit of PLN 3.6m (vs. a loss of PLN 2.4m in Q1 2024) and a net profit of PLN 0.7m, reversing a net loss of PLN 4.5m the year before. The parent company alone achieved revenue of PLN 48.4m (Q1 2024: PLN 41.8m), with an operating profit of PLN 1.8m and a net profit of PLN 0.1m. The positive result is attributed primarily to higher sales volumes and improved market prices for starch products. Final figures will be included in the quarterly report due on May 23, 2025.
Stalprodukt (STP) - Narrows Losses in Q1 2025 Driven by Electrical Sheets Segment Recovery
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Stalprodukt S.A. reported a significant year-on-year improvement in its financial results for Q1 2025, though the Group remained loss-making. The consolidated operating loss amounted to PLN 21.5m, which is roughly 52% lower than the two-year average of PLN 44.5m. Similarly, the net loss narrowed to PLN 18.7m versus an average of PLN 37.7m for Q1 2023 and 2024. The company attributes this improvement primarily to better market conditions in its Electrical Sheets Segment. These figures are preliminary and based on ongoing consolidation procedures, with final results to be published on May 20, 2025.
Tesgas (TSG) - Reports Q1 2025 Loss Amid Revenue Drop and Contract Margin Pressure
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TESGAS S.A. expects to report a consolidated net loss of PLN 4.3m for Q1 2025, compared to break-even results in the same period last year. Group sales fell by 44.5% y/y to PLN 12.2m, with gross margin turning negative. EBIT came in at a loss of PLN 4.8m. The company attributes the weak performance to declining sales volumes, margin dilution due to subcontractor costs, and the need to tie up cash in materials amid market volatility. The standalone result also turned negative, with a net loss of PLN 2.0m versus a profit of PLN 0.6m in Q1 2024. Final figures will be published on May 30, 2025.
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