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Introduction & Market Context
Polish waste management leader Mo-Bruk SA (WA:MBR) presented its 2024 financial results on April 24, 2025, highlighting record-high sales revenue despite ongoing modernization efforts across multiple facilities. The company’s stock fell 8.69% following the presentation, closing at PLN 316.5, suggesting investors may have focused on the company’s margin compression rather than its top-line growth.
Mo-Bruk operates in three complementary waste processing segments: incineration of industrial and medical waste, solidification and stabilization of waste, and production of Refuse Derived Fuel (RDF). The company has positioned itself as a circular economy leader in Poland, with significant investments in capacity expansion and modernization to meet growing demand for waste management services.
Executive Summary
Mo-Bruk reported record sales revenue of PLN 283.9 million in 2024, a 19.8% increase from PLN 237.0 million in 2023. This growth was accompanied by a 26.2% increase in processed waste volume, reaching 323.5 thousand tonnes. However, profitability metrics showed mixed results, with EBITDA slightly decreasing to PLN 116.7 million and EBITDA margin declining to 45% from 49% in the previous year.
As shown in the following chart of revenue and processed waste volume trends:
Net profit increased by 8.5% to PLN 76.3 million, but net profit margin contracted to 25% from 29% in 2023. The company attributed its margin compression to extensive modernization programs, particularly at its Karsy incineration plant, which operated at reduced capacity for seven months during the year.
The following chart illustrates the company’s EBITDA and net profit performance over the past six years:
Detailed Financial Analysis
Mo-Bruk’s revenue growth was driven by strong performance across all business segments. The RDF segment saw the largest increase at 33%, followed by incineration at 23% and solidification/stabilization at 10%. The company also reported PLN 24.7 million in revenue from "ecological bomb" disposal, contributing to its record-high sales figure.
The breakdown of revenues by segment shows the relative contribution of each business line:
Despite revenue growth, operating expenses increased by 28.5% to PLN 190.3 million in 2024. This was primarily driven by a 38.2% increase in raw materials consumption (with cementation materials up 128.4%) and a 36.5% rise in external services. The company also saw a 22.9% increase in employee benefits expenses.
The detailed expense structure provides insight into the cost pressures facing the company:
On a quarterly basis, Mo-Bruk’s performance improved in the second half of 2024, with Q3 showing the strongest EBITDA at PLN 36.1 million and an EBITDA margin of 49.3%. However, Q4 saw margin compression to 41.2%, which the company attributed to the integration of recently acquired El-Kajo facility and delivery delays.
Strategic Initiatives
Mo-Bruk has undertaken significant capital expenditure to modernize and expand its facilities. The company completed the modernization of its Karsy incineration plant at a cost of approximately PLN 140 million, with PLN 38 million funded externally. This investment was aimed at aligning the plant with Best Available Techniques and increasing energy self-sufficiency.
The modernized Karsy incineration plant is shown below:
Additional investments include the Niecew plant modernization, which will increase processing capacity from 100,000 to 140,000 tonnes annually, with a particular focus on hazardous waste handling. The company is also developing a new RDF production line in Karsy with an annual capacity of 140,000 tonnes at a cost of PLN 15 million.
These investments have led to a significant increase in the company’s debt position. Total (EPA:TTEF) financial liabilities rose by 157.3% to PLN 142.2 million, including a 546.9% increase in loans and borrowings to PLN 50.0 million and a 214.0% rise in leasing liabilities to PLN 63.1 million.
Forward-Looking Statements
Mo-Bruk’s management expressed optimism about market trends for 2025 and beyond. The company anticipates growing demand for hazardous waste incineration due to insufficient capacity in the market, increased interest in "green" artificial aggregates, and rising prices for RDF exports.
The company also highlighted regulatory trends that could benefit established waste management operators, including extended producer responsibility and tighter controls on waste streams that favor entities with their own processing facilities.
However, Mo-Bruk faces some challenges, including the closure of its Wałbrzych plant following an unfavorable Supreme Administrative Court ruling, which has necessitated the relocation of RDF production to Karsy. The company noted that the Wałbrzych branch accounted for approximately 2.8% of group revenue and 2.0% of consolidated EBITDA.
As Mo-Bruk completes its current modernization program, investors will be watching closely to see if the anticipated efficiency gains and capacity increases translate into improved margins and sustained revenue growth in the coming years.
Full presentation:
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