Romania's Sipex net profit falls 45% in 2023

The company’s turnover during 2023 registered a 7.4% increase to 313.4 million lei, supported by the growth in the number of customers in the B2B and retail channels, Sipex said in an unaudited financial report filed with the Bucharest Stock Exchange.

"For the construction sector in Romania, 2023 was a complex year characterised by inflation, disruptions in the global supply chain, utility price hikes, and geopolitical instability. These factors led to a significant increase in prices for essential construction materials and influenced our operations. [...] We are optimistic about our growth prospects, anticipating better results in 2024," said Sipex CEO, Gheorghe Constantin Irinel.

Sales in the company’s business-to-business (B2B) division rose 18.7% on the year in 2023, to 122.6 million lei. Sipex’s retail division saw a 2.7% annual increase in sales, to 183.9 million lei, while sales of its store and online division fell by 48.2% to 1.2 million lei.

Sipex’s total operating income rose by an annual 7.8% to 320.6 million lei, while its total operating expenses grew by 12.5% on the year to 308.4 million lei.

The company's assets totalled 136.2 million lei at the end of 2023, up from 112 million lei a year earlier, while total debt rose to 60.16 million lei from 41.4 million lei.

Sipex shares traded 0.63% lower at 0.314 lei as at 1517 CET on Monday on the Bucharest bourse.

(1 euro=4.97166 lei)