Śnieżka Publishes Results for Three Quarters of 2024

Śnieżka Group generated PLN 647.7 million ($157 million) in sales revenue in Q1-Q3 2024, down 8.1% year-on-year. In the period under review, EBITDA amounted to PLN 126.5 million ($31 million), and net profit to PLN 67.4 million ($16.3 million), down 12.8% and 18.3%, respectively, year-on-year.

The decline in results is mainly a consequence of lower sales in volume terms on the entire market and the appreciation of the złoty against the forint and hryvnia. Additionally, relatively unfavorable macroeconomic conditions continue to persist.

Despite unfavorable external conditions, the Śnieżka Group maintained its share in the Polish market.

In the first three quarters of 2024, the Śnieżka Group achieved a gross sales profitability of 49.1%, which means an increase of 4.8 percentage points compared to the previous year.

“The market situation remains difficult, which is reflected in falling sales volumes across the market,” said Joanna Wróbel-Lipa, vice president of the Management Board of Śnieżka SA. “The key factors influencing demand for our products are the condition and sentiment of consumers, which are influenced by, among other things, high interest rates and low growth in real wages. Although consumer sentiment is slowly improving, this has not yet translated into purchasing decisions in our industry. We currently see that maintaining sales volumes at last year’s level throughout 2024 will be impossible.

It is also worth emphasizing that the gross sales profitability in the analyzed period amounted to 49.1%, which is 4.8 percentage points more compared to the previous year. The main reasons for this increase are the stronger złoty against the euro, improved production and logistics efficiency, optimal pricing policy and effective control of production costs. However, such a level of profitability will be difficult to maintain in the coming quarters,” added Wróbel-Lipa.

The decline in the group’s profitability in the first three quarters of 2024 was due to lower sales, as well as a 10% increase in selling and general administrative costs compared to the previous year. EBITDA profitability in the analyzed period was 19.5%, which is a decrease of 1.1 percentage points compared to the previous year, but it is still a very good result compared to the entire industry.

In the first three quarters of 2024, domestic sales reached PLN 464.6 million ($112 million), down 4.3% year-on-year and accounting for 71.7% of consolidated revenues. Sales in the Ukrainian market amounted to PLN 64.5 million, down 8.9% year-on-year. In Hungary, revenues decreased by 19.7%, reaching PLN 84.8 million.

The group has noted stabilization in raw material prices, except for occasional, small increases in the prices of pigments, titanium white, dolomite fillers and calcium carbonates. The availability of raw materials and packaging has improved significantly, and incidental difficulties in obtaining some materials do not affect the continuity of production.

“The key factor influencing financial results remains the situation on the decorative paints market. From an operational point of view, the company consistently invests in building competitive advantages, such as strong brands, a tailored product portfolio and modern, digitalized production and logistics processes. Any improvement in the market situation should translate into positive financial results in the coming year,” Wróbel-Lipa concluded.