2.5. Capital of the Budimex Group, About Budimex Group
[ESRS SBM-1]
FINANCIAL CAPITAL
The capital from which the Budimex Group finances its operations is the funds entrusted to it by shareholders and lenders, and generated by the company through its profits. The Group allocates these resources to purchase necessary raw materials and supplies, and pays its obligations to its business partners in a timely manner, which contributes to their liquidity.
In 2023, the management of financial capital was in line with the set targets. There was a 13.8% increase in sales in the construction segment compared to the previous year. The segment’s gross sales margin reached 10.9%, up from 9.6% in 2022, despite a sharp increase in material prices. The company maintained its contract margin target for most projects. Cost discipline was maintained, with a combined SG&A expense ratio of 3.9% (3.8% in 2022). Net profit stood at PLN 746.1 million, compared with PLN 548.1 million the previous year. Paid a dividend of PLN 459.3 million from the 2022 profit. Effectively managed finances, increasing the net cash position at the end of 2023 to PLN 3.8 billion, an increase of 22.6% over the previous year.
Table: Achieved results – financial capital
More information on financial capital can be found in the 2023 Report on the Activities of the Budimex Group and Budimex SA, available at: https://inwestor.budimex.pl/raporty-okresowe.
HUMAN CAPITAL
The Budimex Group is made up of a diverse team of experienced engineers and employees from other professions committed to building its lasting value. The company consistently provides its team and business partners with decent working conditions, and supports the development of their competence. The priority value is concern for the health and life of all participants in the construction process, so not only the employees of the Budimex Group, but also the staff of its consortium members or suppliers, among others.
In 2023, human capital management included, in particular, thoroughly analyzing the most serious occupational health and safety incidents, organizing safety visits to construction sites and Safety Week, organizing employee development programs (including Young Engineer Academy, Contract Manager Academy, Super Leader, Brick Success), and conducting another engagement survey, through which areas for improvement or enhancement were identified.
Table: Achieved results – human capital
ORGANIZATIONAL CAPITAL
The organizational capital of the Budimex Group is its unique structure, enabling it to offer a wide range of complementary services, as well as its implemented management systems. These assets also include a modern fleet of machinery and equipment necessary for the performance of contracts.
In 2023, organizational capital management primarily included the establishment of BXF Energia Sp. z o.o., the acquisition of PPUH Konstalex Sp. z o.o., and the opening of a Budimex SA branch in Riga, Latvia.
Table: Achieved results – organizational capital
For more information on the Budimex Group’s organizational capital, see Sections 2.1., 2.2. and 2.3., among others.
INTELLECTUAL CAPITAL
The intellectual capital of the Budimex Group is the knowledge and competence of its employees, as well as the unique technical solutions developed by the company, enabling it to, among other things, ensure the safety of the recipients of the Group’s projects and the environment.
In 2023, intellectual capital management included the operation of the Innovation Department and a network of specialized laboratories, as well as the Group’s involvement in 62 carefully selected R&D projects.
Table: Achieved results – intellectual capital
For more information on intellectual capital, see Sections 2.9., 2.10., 2.11. and 5.6.
SOCIAL CAPITAL
A company’s social capital is the relationships it has built with its surroundings, including suppliers, subcontractors, local communities, other companies in the construction sector or public administration.
In 2023, the Budimex Group’s social capital management included, among other things: organizing consultations and information campaigns related to ongoing contracts, compensating local communities for nuisances caused during works, working with other companies to solve common problems of the industry, developing original social programs, running the employee volunteer program Grant for Volunteers, implementing educational projects for pupils and students, and supporting the common good through donations.
Table: Achieved results – social capital
* Data revised from those published in the 2022 integrated report.
For more information on social capital, see Section 5.8.
NATURAL CAPITAL
The Budimex Group uses natural capital, consuming raw materials and potentially contributing to their depletion through negative impacts on ecosystems and the climate.
In 2023, natural capital management consisted of minimizing direct and indirect environmental impacts and included, among other things, increasingly efficient management of raw material consumption (including activities in line with the idea of a circular economy), appropriate planning and securing of construction sites, application of environmental responsibility principles in the supply chain, and a systematic increase in the percentage of electric and hybrid vehicles in the Budimex Group’s fleet.
Table: Effects achieved
[GRI 302-3] [GRI 305-4] [ESRS E1-5] [ESRS E1-6]
* Data revised from that presented in the 2022 report.
For more information on the Budimex Group’s natural capital, see the Environmental Responsibility section of this report.
