Net income of the Kovalska Industrial and Construction Group in 2020 amounted to 8.5 billion hryvnias. This figure is by 25 % higher than than this indicator of the previous year, according to the financial statements of the group.
Revenue from development activities amounted to 1.5 billion hryvnias, according to the management reports of the Kovalska Industrial and Construction Group. Revenue from production activities was 7 billion hryvnias.
In 2020, the companies that are part of the Kovalska Industrial and Construction Group transferred 656 million hryvnias to the budgets of all levels.
180 million hryvnias of taxes and fees were paid from employees' salaries. Last year, the number of the group’s employees increased to almost 5,000 specialists.
“Despite the fact that 2020 was not easy for the Ukrainian economy, the Kovalska group continued to grow and increase capacity. In general, we recorded growth of 15–20 % in many areas of business. In some areas, such as the production of dry mixes and aerated concrete, we have set our own historical records,” Serhiy Pylypenko, General Director of the Kovalska Industrial-Construction Group, said.
During 2020, Kovalska group's enterprises produced more than 1.7 million cubic meters of ready-mixed concrete and mortars. Concrete from the Kovalska group is produced at 9 production sites of 6 enterprises.
In addition, last year, the Kovalska group manufactured and delivered almost 160 thousand cubic meters of serial reinforced concrete and almost 26 thousand cubic meters of prefabricated reinforced concrete structures manufactured according to individual parameters.
In 2020, the production of paving slabs and landscape design elements from the Kovalska group manufactured under the AVENUE brand increased by almost 17 %. Production capacity was over 122 thousand cubic meters of products per year. High sales of the AVENUE products are justified by the increase in demand and improvement of the product line as part of the brand restart process.
The Kovalska group has confidently consolidated its position in the aerated concrete production market. In 2020, the company produced more than 470 thousand tons of products. This result became possible, in particular, due to the modernization of production facilities by the Kovalska Group. The company's net income amounted to more than half a billion hryvnias in 2020.
In 2020, the production and consumption of the SILTEK products increased significantly. The Kovalska group’s enterprise —Terminal-M PJSC that produces dry construction mixes, paints and varnishes under the SILTEK brand manufactured 122 tons of products that is by 30 % more as compared to 2019.
Production of crushed stone at the group's quarry enterprises that are located in the Zhytomyr region and are part of the Hranit vіd Kovalskoyi (Granite from the Kovalska group) increased by 8 % and reached 2.6 million tons in 2020.
INVESTMENT IN THE DEVELOPMENT OF INDUSTRIAL DIRECTIONS
In 2020, the Kovalska group reinvested over 470 million hryvnias in its own development. Last year, a large-scale reconstruction of one of the flagship enterprises — Joint-Stock Company “Svitlana Kovalska Plant Of Reinforced Concrete Structures”. As part of the reconstruction, a new production line was put into operation in shop No. 3, where modern Italian equipment — two rotary tables for forming flat reinforced concrete products according to individual parameters — was installed.
The company also began construction of two plants on the basis of a production complex in the village of Rozvadiv, Lviv region: production of aerated concrete blocks and a plant for manufacturing dry construction mixes. According to preliminary estimates, investment in the project will reach 45 million euros, construction will last several years. The new enterprises will be equipped with state-of-the-art, fully automated equipment, and these measures can create more than 300 jobs.
During the year, the group invested in the renewal of automotive equipment to meet the needs of enterprises. The Kovalska group purchased more than 48 motor vehicles. Among them are 14 concrete mixers, 10 dump trucks, 17 tractors and other special equipment. The average age of the fleet decreased by 8 %.
RESIDENTIAL AND OFFICE REAL ESTATE
As a developer of residential real estate, the Kovalska group has showed the best results in recent years.
The Kovalska group's revenue in the development segment amounted to 1.5 billion hryvnias in 2020.
During the year, sales of real estate were available in three residential complexes from the Kovalska group, namely, residential complex “Rusanivska Havan”, “DOCK32” and “Crystal Park Tower”.
“In the first half of the year, there was a lag in sales due to general quarantine and a temporary pause in business activities. But in the second half of 2020, monthly real estate sales reached the maximum values for all time. The Kovalska group fulfilled its plan for sales of real estate sales in October, and by the end of the year, it exceeded it by 16 %,” Serhiy Pylypenko said.
In addition, in 2020, the group entered the market of office real estate as a professional player. In the autumn of 2020, the Kovalska Industrial and Construction Group and the UFuture holding company announced their cooperation and began construction of new business campuses on the territory of the UNIT.City. The Kovalska group's team undertook the construction of five business campuses with a total area of 70,000 square meters.
In the winter of 2020, the Kovalska Industrial and Construction Group announced its work on the first business park in the center of Kyiv — Nuvo Business Park. The Nuvo Business Park is a complex of seven technological buildings that will include Class A office centers, apartments and a complex of trade and maintenance services. The total commercial area of the business park exceeds 88 thousand square meters. The project is implemented together with the KDD Ukraine development company. The implementation period of the entire project is five years.
In 2020, the portfolio of real estate projects of the Kovalska group has tripled as compared to 2018.
“In 2021, the group continues to invest in its own development. In the coming years, we intend to invest more than 100 million dollars, of which 70 million dollars are own funds, in development,” Serhiy Pylypenko announced.
The Kovalska group plans to invest almost 500 million hryvnia in new assets — construction of plants, development of new production facilities, and another 400 million hryvnias — in modernization of production facilities.
ABOUT THE COMPANY
The Kovalska Industrial and Construction Group is the leading manufacturer of building materials and a developer in Ukraine. Today the group unites 13 enterprises that carry out a full cycle of works from extraction of raw materials, production to construction of structures and buildings intended for various purposes.
The products are represented by a number of brands, including the Beton vid Kovalskoyi (Concrete from the Kovalska group), the AVENUE paving slabs and the Siltek construction mixes.
The Kovalska group enterprises operate in the Kyiv, Zhytomyr, Lviv, Kherson and Chernihiv regions. The total number of employees is 5,000 people.
The development direction has been represented in the group since 2002. During this time, the Kovalska group has completed 26 housing projects.
In 2020, the group entered the market of office real estate as a professional player, became a co-investor in the UNIT.City innovation park and began construction of the Nuvo Business Park together with the KDD company.
The Kovalska group uses its own resources in the construction of its projects. This approach allows the company to build its projects with high quality and complete its projects on time.
You can find a detailed presentation of the results of the Kovalska Industrial and Construction Group in 2020 by following the link.