In the first quarter of 2024, Selena achieved a net profit of €4.5 million, marking a significant increase compared to the same period last year. Despite the still weak economic conditions and an unfavorable business environment, the results were achieved through relative stabilization of raw material prices and the continuation of optimization and market actions established by the management.
The clear market slowdown in 2023, which continued into the first quarter of 2024, was driven by rising general inflation, high interest rates, and credit costs, affecting the industry and reducing demand for construction chemicals. Actions taken by Selena’s management in the second half of 2023, supported by a detailed analysis of global market activities, allowed for the adoption of appropriate strategies aimed at minimizing the negative impact of ongoing market processes. As a result, financial performance improved in the first quarter of 2024. The increase in sales profitability presented at the end of 2023 continued from the beginning of this year. Sales revenue rose in the first quarter of 2024 to €92.6 million, translating to good profitability in this area – by the end of March, it stood at 33.8%. Efforts to increase revenues in Western Europe, a key development market according to business objectives, continued. During the analyzed period, sales in this market increased by 5.5%.
Marketing initiatives strengthening Selena’s brands also continued, with a particular focus on its leading brand Tytan Professional® and its Spanish counterpart Quilosa Professional®, aiming to increase their recognition and appreciation among the target group – construction contractors.
Gross profit from sales in the first quarter of 2024 increased to €31.3 million compared to €25.4 million in the same period last year.
In the first quarter of 2024, Selena achieved a net profit of €4.5 million. Operating profit during the reporting period rose to €6.4 million compared to €89,000 in the first quarter of last year, when weaker market conditions in Poland and Western Europe, particularly decreased demand and prior stockpiling, significantly impacted the entire industry’s results.
– “The unfavorable economic conditions we experienced in 2023 continued in the first quarter of this year. One of the main challenges facing the industry is the rising costs of raw materials and energy, which in turn may affect product costs and demand. We closely monitor the market and respond flexibly to changes. This dynamic directly translates into our decisions. We diversify products and markets in which the company operates, focusing on solutions in the areas of thermal modernization, waterproofing, and innovative building methods. Importantly, we are increasingly strengthening our presence in other countries. We are expanding our activities and scaling the business not only in Poland but also in Western Europe and both Americas. These directions will continue in 2024, and I believe they will yield positive results,” says Sławomir Majchrowski, CEO of Selena Group.
The presented financial results for the first quarter of 2024 indicate the good condition of the Selena Group. Operating profit (EBIT) amounted to €6.4 million, and EBITDA profitability increased to 9.5%. In the coming months, the set goals and directions, as well as initiated actions, will be continued, especially as the market environment remains very challenging.
