11.22.23
The Śnieżka Group recorded a successful season in 2023, achieving an increase in sales revenues by 8.3% y/y in the first three quarters. On the group's largest market, Poland, sales increased by 9%. The share of the Ukrainian market, the third in the sales structure, again exceeded 10%, thus approaching pre-war levels. In turn, margins returned to pre-pandemic values.
For the first three quarters of this year. The Śnieżka Group generated sales revenues of PLN 705.1 million ($176.3 million), up by 8.3% y/y. The sales results were primarily influenced by the increase in sales on the Polish market, which dominates the group's total revenues (responsible for 68.8% of the group's consolidated sales).
Śnieżka also achieved significantly higher sales on the Ukrainian market y/y (an increase in PLN by 33.4%), which thus rebuilt its share in the group's revenue structure to levels similar to those before the outbreak of the war.
The implementation of a long-term marketing and sales strategy, which includes the pricing policy, had a positive impact on sales results and profits in the reporting period. It assumes, among others, consistently implemented changes in product prices in response to rising prices of raw materials used in production and persistently high costs of running a business (e.g. transport costs, logistics prices and wages).
However, it should be emphasized that unfavorable macroeconomic conditions still persist, affecting the entire industry in which the group operates. This includes still high inflation resulting in a decline in consumers' purchasing power, which is confirmed by unfavorable, although improving compared to last year, consumer sentiment indicators.
However, the group's results were positively influenced by the trend of premiumization, i.e. purchasing higher quality products, observed on the group's key Polish market for several years. In the case of Śnieżka, these are products of the Magnat and Vidaron brands.
“The 2023 season is a very successful one,” said Joanna Wróbel-Lipa, vice president of the Management Board, commercial director of FFiL Śnieżka SA. “Despite the difficult environment, Śnieżka turned out to be well prepared for the changing market situation. The results have resulted in strong foundations built over the years based on brands known and liked by consumers, effectively implemented sales and marketing processes, including pricing, and largely automated and digitized production and logistics processes. We returned to the margin levels achieved a few years ago, which was our priority this year.
On the Ukrainian market, the group recorded a strong y/y rebound after last year's deep decline. In Ukraine, the group achieved revenues of PLN 70.9 million ($17.8 million), i.e. 33.4% higher than in the corresponding period of 2022. In local currency, Śnieżka-Ukraina achieved 61.9% higher sales results in the 2023 season.
Consumer sentiment and, therefore, renovation plans of Hungarians are strongly influenced by record inflation (in the entire period of January-September it reached 20.9% y/y). The weakening purchasing power of customers reduces the demand for products of the entire industry. As a result, the revenues generated by the group in Hungary in the reporting period amounted to PLN 105.6 million ($26.4 million) and were 6.6% lower than a year earlier (in local currency by 6.4%).
In this period, revenues on the Hungarian market had a 15% share in the total revenues of the Śnieżka Group (a decrease of 2.4 percentage points y/y), while on the Ukrainian market it was 10.1% (an increase of 1.9 percentage points). y/y). On other foreign markets where Śnieżka Group products are sold, sales totaled PLN 42.9 million ($10.7 million), i.e. 9.7% higher than in the first nine months of last year. and accounted for 6.1% of the Group's total revenues.
“In Poland, Ukraine and Hungary, our market shares increased or were maintained,” added Wróbel-Lipa. “This confirms that Śnieżka's wide portfolio in the decorative paints and construction chemicals market with recognizable brands, such as Magnat, Śnieżka, Vidaron, Foveo-Tech and Rafil, responds very well to the needs of customers renovating or arranging their apartments, houses and gardens. This allows us to look into the future with optimism. We adapt our offer to consumer expectations and emerging market trends. Śnieżka's ESG strategy includes, among others, product and environmental responsibility. Therefore, we make sure that our products have the lowest possible impact on the environment and are safe for consumers' health.”
In the first nine months of this year, the group achieved very good financial results: consolidated net profit of PLN 82.5 million ($20.6 million), an increase of 84.5% y/y, operating profit of PLN 115.9 million (an increase of 56.4% y/y ) and EBITDA result of PLN 145.1 million (increase by 43.1% y/y).
In the third quarter of 2023 alone, the group generated PLN 270.5 million ($67.6 million) in sales revenues (an increase of 9.2% y/y), PLN 55.3 million of operating profit (an increase of 74.2% y/y), 65 PLN .0 million of EBITDA profit (increase by 58.7% y/y) and PLN 41.2 million of net profit (increase by 89.6% y/y).
For the first three quarters of this year. The Śnieżka Group generated sales revenues of PLN 705.1 million ($176.3 million), up by 8.3% y/y. The sales results were primarily influenced by the increase in sales on the Polish market, which dominates the group's total revenues (responsible for 68.8% of the group's consolidated sales).
Śnieżka also achieved significantly higher sales on the Ukrainian market y/y (an increase in PLN by 33.4%), which thus rebuilt its share in the group's revenue structure to levels similar to those before the outbreak of the war.
The implementation of a long-term marketing and sales strategy, which includes the pricing policy, had a positive impact on sales results and profits in the reporting period. It assumes, among others, consistently implemented changes in product prices in response to rising prices of raw materials used in production and persistently high costs of running a business (e.g. transport costs, logistics prices and wages).
However, it should be emphasized that unfavorable macroeconomic conditions still persist, affecting the entire industry in which the group operates. This includes still high inflation resulting in a decline in consumers' purchasing power, which is confirmed by unfavorable, although improving compared to last year, consumer sentiment indicators.
However, the group's results were positively influenced by the trend of premiumization, i.e. purchasing higher quality products, observed on the group's key Polish market for several years. In the case of Śnieżka, these are products of the Magnat and Vidaron brands.
“The 2023 season is a very successful one,” said Joanna Wróbel-Lipa, vice president of the Management Board, commercial director of FFiL Śnieżka SA. “Despite the difficult environment, Śnieżka turned out to be well prepared for the changing market situation. The results have resulted in strong foundations built over the years based on brands known and liked by consumers, effectively implemented sales and marketing processes, including pricing, and largely automated and digitized production and logistics processes. We returned to the margin levels achieved a few years ago, which was our priority this year.
On the Ukrainian market, the group recorded a strong y/y rebound after last year's deep decline. In Ukraine, the group achieved revenues of PLN 70.9 million ($17.8 million), i.e. 33.4% higher than in the corresponding period of 2022. In local currency, Śnieżka-Ukraina achieved 61.9% higher sales results in the 2023 season.
Consumer sentiment and, therefore, renovation plans of Hungarians are strongly influenced by record inflation (in the entire period of January-September it reached 20.9% y/y). The weakening purchasing power of customers reduces the demand for products of the entire industry. As a result, the revenues generated by the group in Hungary in the reporting period amounted to PLN 105.6 million ($26.4 million) and were 6.6% lower than a year earlier (in local currency by 6.4%).
In this period, revenues on the Hungarian market had a 15% share in the total revenues of the Śnieżka Group (a decrease of 2.4 percentage points y/y), while on the Ukrainian market it was 10.1% (an increase of 1.9 percentage points). y/y). On other foreign markets where Śnieżka Group products are sold, sales totaled PLN 42.9 million ($10.7 million), i.e. 9.7% higher than in the first nine months of last year. and accounted for 6.1% of the Group's total revenues.
“In Poland, Ukraine and Hungary, our market shares increased or were maintained,” added Wróbel-Lipa. “This confirms that Śnieżka's wide portfolio in the decorative paints and construction chemicals market with recognizable brands, such as Magnat, Śnieżka, Vidaron, Foveo-Tech and Rafil, responds very well to the needs of customers renovating or arranging their apartments, houses and gardens. This allows us to look into the future with optimism. We adapt our offer to consumer expectations and emerging market trends. Śnieżka's ESG strategy includes, among others, product and environmental responsibility. Therefore, we make sure that our products have the lowest possible impact on the environment and are safe for consumers' health.”
In the first nine months of this year, the group achieved very good financial results: consolidated net profit of PLN 82.5 million ($20.6 million), an increase of 84.5% y/y, operating profit of PLN 115.9 million (an increase of 56.4% y/y ) and EBITDA result of PLN 145.1 million (increase by 43.1% y/y).
In the third quarter of 2023 alone, the group generated PLN 270.5 million ($67.6 million) in sales revenues (an increase of 9.2% y/y), PLN 55.3 million of operating profit (an increase of 74.2% y/y), 65 PLN .0 million of EBITDA profit (increase by 58.7% y/y) and PLN 41.2 million of net profit (increase by 89.6% y/y).
