09.25.23
In the first half of 2023, the Śnieżka Capital Group generated sales revenues 7.7% higher than last year and recorded an increase in profits. The achieved results were influenced primarily by sales on the most important Polish market for the group, as well as high sales dynamics in Ukraine - the third market for the Śnieżka Group.
In the second part of the season, the owner of brands including Magnat, Śnieżka and Vidaron will focus on strengthening their market position. Protecting margins remains key to the Management Board.
During the first six months of this year The Śnieżka Group achieved sales revenues of PLN 434.5 million ($101 million), i.e. 7.7% higher than a year earlier. This is primarily the result of 6.8% higher sales in the Polish market, where the group currently generates over 69% of its consolidated revenues. This growth was also supported by higher sales on the Ukrainian market, which is quickly rebuilding its share in the Group's revenue structure. Their current levels are comparable to those achieved before the outbreak of the war.
The good results achieved by the Śnieżka Group in the first half of 2023 are largely the result of the implementation of a long-term marketing and sales strategy, of which the pricing policy is an element. The entire industry in which the group operates is still affected by a number of unfavorable macroeconomic factors. This is especially high inflation, which translates into a decline in consumers' purchasing power, as well as still unfavorable consumer sentiment indicators - although improving compared to last year.
However, the trend of premiumization, i.e. purchasing higher quality products, which has been continuing for several years, had a positive impact on the Group's results in Poland.
“The market situation is still difficult, but Śnieżka has coped well in the conditions of high inflation and low levels of consumer sentiment. Therefore, I can say that the results achieved in the first half of the year are above our expectations. We are currently returning to the margin levels achieved a few years ago, which is our priority,” said Piotr Mikrut, chairman of the board.
In the Hungarian market, the group faces similar challenges as on its home market, including: with falling purchasing power and low consumer sentiment indicators. It should be noted, however, that the scale and dynamics of inflation, which is mainly the cause of these phenomena, is significantly higher in Hungary than in Poland.
This reduces both demand and renovation plans of local customers. As a result, the group's revenues on the Hungarian market in the first half of this year amounted to PLN 64.9 million, which means a decrease of 8.7% y/y (PLN 6.2 million).
In turn, on the Ukrainian market, the group achieved revenues of PLN 40.8 million, i.e. as much as 57.5% (PLN 14.9 million) higher compared to the previous year. However, the results of the first half of 2023 are incomparable to those obtained in the same period last year, because for a significant part of the first half of the year (from February 24 to April 11 last year), Śnieżka-Ukraina stopped deliveries and suspended production.
In this period, revenues on the Hungarian market had a 14.9% share in the total revenues of the Śnieżka Group (-2.7 pp.), and on the Ukrainian market it was 9.4% (an increase of 3 pp.). On other foreign markets where Śnieżka Group products are sold, sales totaled PLN 25.4 million, i.e. 14.4% higher than in the first six months of last year. and accounted for 5.9% of the group's total revenues (an increase of 0.4 percentage points).
“The increase in sales above the market achieved in Poland confirmed that an effectively implemented marketing and sales strategy still allows us to increase our share on the Polish market, which is key for the group. It has interest, among others: the strength of our brands: Magnat, Śnieżka and Vidaron. The situation is similar in Hungary, where customers are attached to the Poli-Farbe brand. In Ukraine, we record a significant increase in sales y/y. It is related not only to the low base of results from last year, but also to the returning demand for renovation products,” said Joanna Wróbel-Lipa, vice president of the Management Board of FFiL Śnieżka SA, commercial director.
During the first six months of this year the group achieved an operating profit of PLN 60.6 million (+43.0% y/y), an EBITDA result of PLN 80.2 million (+32.6% y/y) and a consolidated net profit of PLN 41.3 million (+79.8% y/y).
In the second quarter of 2023 alone, the group generated PLN 233.1 million of sales revenues (+9.2% y/y), PLN 33.0 million of operating profit (+34.7% y/y), PLN million of EBITDA profit (+26.3% y/y) and PLN 24.1 million of net profit (+118.8% y/y). The profit attributable to the shareholders of the parent company amounted to PLN 22.0 million (+148.0% y/y).
On the amount of the group's profits achieved in the period January-June this year, the impact was primarily due to the effectively implemented marketing and sales strategy and the favorable euro exchange rate. The positive dynamics of revenues had a positive impact on the results, while increases in sales costs by 6.3% and general administrative costs by 9.6% had a negative impact.
As announced, the group's capital expenditure was limited and in the first half of 2023 amounted to PLN 7.4 million. These were mainly expenses of FFiL Śnieżka SA related to continued investments in the new Logistics Center located in Zawada near Dębica, in fixed assets, as well as for the modernization of installations in selected production departments, including Śnieżka-Ukraina. In 2023, the total value of investment expenditure in the Group is expected to be significantly lower than a year earlier and is planned at approximately PLN 35 million.
In the second part of the season, the owner of brands including Magnat, Śnieżka and Vidaron will focus on strengthening their market position. Protecting margins remains key to the Management Board.
During the first six months of this year The Śnieżka Group achieved sales revenues of PLN 434.5 million ($101 million), i.e. 7.7% higher than a year earlier. This is primarily the result of 6.8% higher sales in the Polish market, where the group currently generates over 69% of its consolidated revenues. This growth was also supported by higher sales on the Ukrainian market, which is quickly rebuilding its share in the Group's revenue structure. Their current levels are comparable to those achieved before the outbreak of the war.
The good results achieved by the Śnieżka Group in the first half of 2023 are largely the result of the implementation of a long-term marketing and sales strategy, of which the pricing policy is an element. The entire industry in which the group operates is still affected by a number of unfavorable macroeconomic factors. This is especially high inflation, which translates into a decline in consumers' purchasing power, as well as still unfavorable consumer sentiment indicators - although improving compared to last year.
However, the trend of premiumization, i.e. purchasing higher quality products, which has been continuing for several years, had a positive impact on the Group's results in Poland.
“The market situation is still difficult, but Śnieżka has coped well in the conditions of high inflation and low levels of consumer sentiment. Therefore, I can say that the results achieved in the first half of the year are above our expectations. We are currently returning to the margin levels achieved a few years ago, which is our priority,” said Piotr Mikrut, chairman of the board.
In the Hungarian market, the group faces similar challenges as on its home market, including: with falling purchasing power and low consumer sentiment indicators. It should be noted, however, that the scale and dynamics of inflation, which is mainly the cause of these phenomena, is significantly higher in Hungary than in Poland.
This reduces both demand and renovation plans of local customers. As a result, the group's revenues on the Hungarian market in the first half of this year amounted to PLN 64.9 million, which means a decrease of 8.7% y/y (PLN 6.2 million).
In turn, on the Ukrainian market, the group achieved revenues of PLN 40.8 million, i.e. as much as 57.5% (PLN 14.9 million) higher compared to the previous year. However, the results of the first half of 2023 are incomparable to those obtained in the same period last year, because for a significant part of the first half of the year (from February 24 to April 11 last year), Śnieżka-Ukraina stopped deliveries and suspended production.
In this period, revenues on the Hungarian market had a 14.9% share in the total revenues of the Śnieżka Group (-2.7 pp.), and on the Ukrainian market it was 9.4% (an increase of 3 pp.). On other foreign markets where Śnieżka Group products are sold, sales totaled PLN 25.4 million, i.e. 14.4% higher than in the first six months of last year. and accounted for 5.9% of the group's total revenues (an increase of 0.4 percentage points).
“The increase in sales above the market achieved in Poland confirmed that an effectively implemented marketing and sales strategy still allows us to increase our share on the Polish market, which is key for the group. It has interest, among others: the strength of our brands: Magnat, Śnieżka and Vidaron. The situation is similar in Hungary, where customers are attached to the Poli-Farbe brand. In Ukraine, we record a significant increase in sales y/y. It is related not only to the low base of results from last year, but also to the returning demand for renovation products,” said Joanna Wróbel-Lipa, vice president of the Management Board of FFiL Śnieżka SA, commercial director.
During the first six months of this year the group achieved an operating profit of PLN 60.6 million (+43.0% y/y), an EBITDA result of PLN 80.2 million (+32.6% y/y) and a consolidated net profit of PLN 41.3 million (+79.8% y/y).
In the second quarter of 2023 alone, the group generated PLN 233.1 million of sales revenues (+9.2% y/y), PLN 33.0 million of operating profit (+34.7% y/y), PLN million of EBITDA profit (+26.3% y/y) and PLN 24.1 million of net profit (+118.8% y/y). The profit attributable to the shareholders of the parent company amounted to PLN 22.0 million (+148.0% y/y).
On the amount of the group's profits achieved in the period January-June this year, the impact was primarily due to the effectively implemented marketing and sales strategy and the favorable euro exchange rate. The positive dynamics of revenues had a positive impact on the results, while increases in sales costs by 6.3% and general administrative costs by 9.6% had a negative impact.
As announced, the group's capital expenditure was limited and in the first half of 2023 amounted to PLN 7.4 million. These were mainly expenses of FFiL Śnieżka SA related to continued investments in the new Logistics Center located in Zawada near Dębica, in fixed assets, as well as for the modernization of installations in selected production departments, including Śnieżka-Ukraina. In 2023, the total value of investment expenditure in the Group is expected to be significantly lower than a year earlier and is planned at approximately PLN 35 million.
