Industry Report Construction of Buildings 2015 BULGARIA
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Industry Report Construction of buildings 2015 BULGARIA seenews.com/reports This industry report is part of your subcription access to SeeNews | seenews.com/subscription CONTENTS I. KEY INDICATORS II. INTRODUCTION III. REVENUES IV. EXPENSES V. PROFITABILITY VI. EMPLOYMENT 1 SeeNews Industry Report NUMBER OF COMPANIES IN CONSTRUCTION OF BUILDINGS I. KEY INDICATORS INDUSTRY BY SECTORS SECTOR 2015 2014 2013 The Construction of buildings industry in Bulgaria was CONSTRUCTION OF RESIDENTIAL AND NON- 6,917 6,952 6,827 represented by 7,558 companies at the end of 2015, RESIDENTIAL BUILDINGS compared to 7,558 in the previous year and 7,381 in 2013. DEVELOPMENT OF BUILDING PROJECTS 641 606 554 The industry's net profit amounted to BGN 135,798,000 in 2015. The industry's total revenue was BGN 6,068,013,000 in III. REVENUES 2015, up by 9.67% compared to the previous year. The total revenue in the industry was BGN 6,068,013,000 in The combined costs of the companies in the Construction 2015, BGN 5,532,891,000 in 2014 and 5,445,668,000 in 2013. of buildings industry reached BGN 5,889,274,000 in 2015, up by 8.71% year-on-year. Total revenue Net sales revenue The industry's total revenue makes up 7.52% to the country's Gross domestic product (GDP) in 2015, compared 7,000,000,000 to 7.10% for 2014 and 7.08% in 2013. 6,068,013,000 6,000,000,000 A total of 52,515 people were employed in the Construction 5,445,668,000 5,532,891,000 of buildings industry in 2015, compared to 51,930 in 2014 and 62,543 in 2013. 5,000,000,000 5,111,548,000 Most of the companies in the industry are based in Sofia, 4,497,938,000 4,000,000,000 followed by Varna and Burgas. 4,219,266,000 BGN II. INTRODUCTION 3,000,000,000 2,000,000,000 In 2015 the companies in the Construction of buildings industry numbered 7,558, distributed in 2 sectors. 1,000,000,000 0 2013 2014 2015 The companies in the Construction of buildings market of Bulgaria earned combined net sales revenues of BGN 5,111,548,000 in 2015. 641 In annual terms, sales marked a growth of 13.64% compared to 2014. In comparison to 2013 they went up by 21.15%. In 2014 sales rose by 6.60% year-on-year. The Construction of buildings industry total revenue make up 6,917 7.52% to the country's GDP in 2015, compared to 7.10% for 2014 and 7.08% in 2013. Construction of residential and non-residential buildings Development of building projects In 2014 there were a total of 7,558 companies operating in the industry. In 2013 their number totalled 7,381. 2 SeeNews Industry Report Share in GDP 8 7.52% INDUSTRY'S NET SALES REVENUE STRUCTURE BY SECTORS 7.08% 7.1% 7 6 5 4 3 2.62% 97.38% 2 1 0 2013 2014 2015 In 2015 the Construction of buildings industry contributed to GDP BGN 4,960,641,000 in Gross value added (GVA) Construction of residential and non-residential buildings accounting for 3.21% of the total for the country's economy. Development of building projects In the previous year, the industry's GVA amounted BGN 4,405,183,000, accounting for 3.07% of the total for the The highest growth, of 14.91%, was recorded by Construction country in 2014. In 2013 the GVA of the Construction of of residential and non-residential buildings, while buildings was BGN 4,181,764,000, or 3.09% of the GVA for the Development of building projects registered the sharpest country's economy. decline, of 19.31%. GVA BY SECTORS TOP COMPANIES' REVENUE BY SECTORS SEGMENT COMPANY TOTAL REVENUE NET SALES RANK SECTOR BGN SHARE OF THE (BGN) REVENUE (BGN) COUNTRY'S GVA (%) CONSTRUCTION OF RESIDENTIAL AND NON-RESIDENTIAL BUILDINGS 1 CONSTRUCTION OF RESIDENTIAL AND 4,810,340,000 3.11 VODSTROI 98 AD 292,310,000 281,715,000 NON-RESIDENTIAL BUILDINGS GLAVBOLGARSTROY AD 200,562,000 196,109,000 2 DEVELOPMENT OF BUILDING PROJECTS 150,301,000 0.10 BUILDING DEVELOPMENT HOLDING OOD 133,375,000 131,332,000 DEVELOPMENT OF BUILDING PROJECTS GRUPO G56 BULGARIA OOD 46,095,000 1,467,000 We expect, based on the trend in the last three years, the total revenue of the Construction of buildings industry to change TEHNOIMPORTEKSPORT AD 16,285,000 11,632,000 at a compound annual growth rate (CAGR) of 5.56% in 2016. SIMEONOVO PROJECT ESTATE OOD 14,092,000 0 Construction of residential and non-residential buildings contributed net sales revenue of BGN 4,977,534,000 or The top 10 companies in terms of total revenue in 97.38% of the total net sales in the industry, and sector Construction of buildings accounted for 16.58% of the Development of building projects - BGN 134,014,000 (2.62%). industry's total in 2015, 15.39% in 2014 and 13.89% in 2013. TOP 10 COMPANIES BY TOTAL AND NET SALES REVENUE IN THE INDUSTRY RANK COMPANY TOTAL REVENUE NET SALE (BGN) REVENUE (BGN) 1 VODSTROI 98 AD 292,310,000 281,715,000 2 GLAVBOLGARSTROY AD 200,562,000 196,109,000 3 BUILDING DEVELOPMENT HOLDING OOD 133,375,000 131,332,000 4 PLANEX OOD 68,606,000 61,495,000 5 MIKS CONSTRUCTION OOD 61,442,000 60,708,000 6 KALISTRATOV GRUP OOD 52,566,000 51,191,000 7 GBS - PLOVDIV AD 51,862,000 50,969,000 8 PONSSTROJINJENERING AD 50,570,000 45,034,000 9 CORDEEL BULGARIA AD 48,699,000 48,043,000 10 GRUPO G56 BULGARIA OOD 46,095,000 1,467,000 The total revenues of the top 10 companies in the 3 SeeNews Industry Report Construction of buildings were 1.25% of GDP in 2015, compared to 1.09% for 2014 and 0.98% in 2013. TOP 10 COMPANIES BY TOTAL REVENUE IN THE FIELD DEVELOPMENT OF BUILDING PROJECTS WERE: The top 10 by assets in the Construction of buildings field COMPANY BGN made up BGN 619,869,000, or 12.13% of the total net sales GRUPO G56 BULGARIA OOD 46,095,000 revenue. TEHNOIMPORTEKSPORT AD 16,285,000 SIMEONOVO PROJECT ESTATE OOD 14,092,000 TOP 10 BY TOTAL ASSETS IN THE INDUSTRY DREAMVILLE OOD 10,174,000 RANK COMPANY BGN KASKADAS 10 OOD 9,949,000 1 VODSTROI 98 AD 193,596,000 PLH INVEST OOD 7,703,000 2 GLAVNO UPRAVLENIE STROITELSTVO I 128,037,000 KARRAT GROUP OOD 7,466,000 VAZSTANOVYAVANE AD ATLAND MLADOST AD 7,051,000 3 GLAVBOLGARSTROY AD 124,180,000 PRK BULGARIA 85 OOD 6,820,000 4 NIKMI AD 116,482,000 SIM - INVEST OOD 6,059,000 5 PONSSTROJINJENERING AD 110,760,000 6 SIENIT INVEST OOD 89,142,000 7 VICTORIA GROUP VM 85,499,000 The 10 largest companies in terms of total revenue in sector 8 TEHNOIMPORTEKSPORT AD 81,690,000 Construction of buildings earned total revenue of BGN 9 PLANEX OOD 81,121,000 131,694,000 and accounted for 2.17% of the industry's total 10 PROJECT RUSE AD 77,590,000 revenue. TOP 10 COMPANIES WITH HIGHEST ANNUAL GROWTH IN OPERATING REVENUE IN CONSTRUCTION OF BUILDINGS IV. EXPENSES RANK COMPANY Y/Y GROWTH 1 SOF TECH PARK DZZD 454050.00% The combined costs of the companies in the Construction of 2 BG- AVS INZHENERING DZZD 149800.00 buildings industry reached BGN 5,889,274,000 in 2015. % 3 DZZD BG STROY 122300.00% 4 KIMIMPEX PROPERTIES OOD 96500.00% Total Expenses 5 UNI INVEST OOD 74475.00% Operational expenses 5,889,274,000 6 IBERA DEVELAPMANT OOD 67950.00% 6,000,000,000 7 ORGSTROY ENGINEERING OOD 65200.00% 5,418,397,000 5,417,355,000 5,500,000,000 8 EUROESTATES OOD 64200.00% 5,596,973,000 9 ROYALSTROI 1 OOD 63500.00% 5,000,000,000 5,119,812,000 5,122,371,000 10 ALIOT OOD 51500.00% 4,500,000,000 4,000,000,000 TOP 10 COMPANIES BY TOTAL REVENUE IN THE SECTOR 3,500,000,000 CONSTRUCTION OF RESIDENTIAL AND NON-RESIDENTIAL BUILDINGS WERE: 3,000,000,000 COMPANY BGN BGN 2,500,000,000 VODSTROI 98 AD 292,310,000 GLAVBOLGARSTROY AD 200,562,000 2,000,000,000 BUILDING DEVELOPMENT HOLDING OOD 133,375,000 1,500,000,000 PLANEX OOD 68,606,000 MIKS CONSTRUCTION OOD 61,442,000 1,000,000,000 KALISTRATOV GRUP OOD 52,566,000 500,000,000 GBS - PLOVDIV AD 51,862,000 PONSSTROJINJENERING AD 50,570,000 0 CORDEEL BULGARIA AD 48,699,000 2013 2014 2015 OBEDINENIE GBS - TSENTRALNA GARA SOFIA DZZD 45,994,000 In annual terms, total expenses grew by 8.71% compared to 2014 and rose by 8.69% in comparison to 2013. The 10 largest companies in terms of total revenue in sector Construction of buildings earned total revenue of BGN The total operating expenses of the companies in the 1,005,986,000 and accounted for 16.58% of the industry's Construction of buildings industry were BGN 5,596,973,000 total revenue. in 2015. Operating costs grew by 9.27% compared with the previous year and grew by 9.32% when compared to 2013. We expect, based on the trend in the last three years, the total costs of the Construction of buildings industry to change at a compound annual growth rate (CAGR) of 4.25% in 2016.