Bogdanka increases sales, improves profitability and records over six-fold increase in net profit

The profitability of the Bogdanka Group has clearly improved. The EBITDA margin rose to 45.5%, with a 25.6 p.p. year-on-year increase, while the EBIT margin was 39.6% – 33.7 p.p. higher than in the same period last year.

The beginning of 2025 confirmed that Bogdanka can respond flexibly and effectively to dynamic market changes. Despite the fall in coal prices, we have seen a marked increase in sales and improved yields thanks to increased production and efficient preparation work. In the first quarter of 2025, gross output increased by nearly 33% and commercial coal production by as much as 41.4%, which clearly confirms our high operational efficiency.

The Group's priority is still to maintain a strong competitive position through efficient, modern and profitable thermal coal production. Our optimised and profitable core business will allow us to fund the two new growth pillars identified in the updated Strategy: building a sustainable industry based on revenue diversification and an energy transformation based on zero- and low-carbon energy sources,

– says Zbigniew Stopa, President of the Management Board of LW Bogdanka.

Production and sales

In Q1 2025, LW Bogdanka sold almost 2.24 million tonnes of commercial coal, which means a 27.3% increase compared to the previous year. This made it possible to fully mitigate the effects of the drop in coal prices and contributed to a significant improvement in the efficiency of the Company's operations and the generation of very good financial results. The company maintained its strong market position, achieving a 34% share of coal supplies to the commercial power industry in Poland, which means an increase towards 33.2% at the end of 2024.
LW Bogdanka produced almost 2.7 million tonnes of commercial coal, i.e. 41.4% (+777,000 tonnes) more than in Q1 2024. Yield was 69%, which means a year-on-year increase by 4.3 p.p.

Investments

In Q1 2025, LW Bogdanka CG earmarked a total of approximately PLN 124.2 million for investments, which accounts for 17.8% of this year's CAPEX. More than 76% of this expenditure was appropriated for the development of new pits and the modernisation of existing pits. The total length of pits excavated in Q1 2025 was 4.5 km.

Financial results

After three months of 2025, consolidated sales revenues amounted to PLN 868.9 million, which means a 6.5% increase compared to the same period last year. In turn, the Group's EBITDA increased by 143.1% to PLN 395 million. The EBIT operating result is more than seven times higher (PLN 343.7 million) than in the same period last year, while net profit has increased by more than six times to PLN 283.9 million.
The EBITDA margin has improved to 45.5%, increasing by 25.6 p.p., and the EBIT margin was 39.6%, which means 33.7 p.p. higher than last year. The Group's liquidity position remains stable.

The Company's financial results in Q1 2025 were positively impacted by the payment of PLN 144.85 million in compensation for the damage caused by the 2023 groundwater spill.

In the first quarter of 2025, we recorded a significant improvement in our financial performance as a result of higher coal production and sales, as well as the effective operational measures taken and efficient cost management. Operating profit has increased by more than seven times and EBITDA by more than 2.5 times, reaching PLN 395 million. Even if we deduct the one-off payment of compensation from total results, the increases in performance remain impressive, with a fourfold increase in EBIT and a fivefold increase in net profit. This means that we have significantly improved profitability and once again confirm that the Company has a high cash generation capacity, which allows for the stable financing of both its current and development activities. In the next periods, we plan to implement consistently the new Development Strategy, flexibly responding to changing market and cost conditions,

– says Artur Wasilewski, Deputy President of the Management Board for Economic and Financial Affairs.

Development strategy

In April 2025, the Group adopted a Development Strategy until 2030 with an outlook towards 2035, responding to the accelerating energy transformation and regulatory requirements. The strategy assumes the improvement of mining efficiency, higher competitiveness and the development of domestic and international sales. Optimisation of the core business will make it possible to finance development within the framework of sustainable industry and low-carbon energy.

Average annual coal production is expected to reach 8.2 million tonnes from 2025 to 2030 and 6,0 million tonnes from 2031 to 2035. Cumulative EBITDA is expected to reach PLN 8.2 bn by 2035, with EBITDA margin ratios averaging 26% (2025–2030) and 28.7% (2031–2035).
Key financial data (in PLN thousand)

For further information, please contact:

Marcin Kujawiak, Lubelski Węgiel „Bogdanka” S.A.
tel. 667 45 02 94
e-mail: mkujawiak@lw.com.pl  

Magda Kołodziejczyk, M+G
tel. 22 416 01 02, 501 16 88 07
e-mail: magda.kolodziejczyk@mplusg.com.pl