- Grupa Śnieżka achieved sales revenues of PLN 172.3 million in Q1 2024, a 14.5% year-on-year decline. In the analyzed period, EBITDA amounted to PLN 26.3 million, and net profit was PLN 10.6 million, representing decreases of 29.8% and 38.7% respectively compared to the same period last year.
- The decline in results is due to the strengthening of the złoty against the forint and hryvnia, and the implementation of changes in the distribution model in the independent market in Poland. In the long term, expanding the distribution model is an important step in the further development of the Group and building its competitive advantages.
- On May 29, the company will pay out nearly PLN 40 million in dividends, amounting to PLN 3.17 per share. In total, including the upcoming payment, PLN 544.2 million has been distributed to shareholders since the company’s debut on the Warsaw Stock Exchange.
Distribution Model Expansion as a Long-Term Growth Catalyst
Since the beginning of 2024, we have implemented changes in the distribution model in the independent market in Poland. Selected retail outlets that were previously indirectly serviced by distributors can now also make direct purchases from the Śnieżka Group. The expansion of the model was made possible by investments in the Logistics Center and IT systems. The introduced change in the independent market had a negative impact on the Group’s results in Q1 2024. This trend may also be visible in the following quarters of 2024; however, since April, we have not observed a negative impact of the model expansion on revenues. In the long term, this change is an important step in the further development of the Group and building its competitive advantages, commented Piotr Mikrut, President of the Management Board of Śnieżka SA.
The decline in the Group’s profitability, in addition to the drop in sales, was influenced by a 21.2% year-on-year increase in general management costs and an 8.0% year-on-year increase in sales costs. The EBITDA margin in Q1 2024 was 15.3%, a 3.3 pp decrease year-on-year. At the same time, due to a 23.6% decrease in production costs, the Group achieved a gross sales margin of 48.4%, which is 6.2 pp higher year-on-year.
Domestic sales amounted to PLN 124.4 million, a 16.1% year-on-year decrease, representing 72.2% of consolidated revenues. In Ukraine, the Group recorded an increase in revenues compared to the previous year. Sales in this market amounted to PLN 18.9 million, a 13.8% increase compared to Q1 2023. In Hungary, revenues decreased by 14.8% year-on-year, reaching PLN 23 million.
As of the end of March 2024, the Group’s net debt/EBITDA ratio was 1.88 compared to 2.72 a year earlier.
Key Elements of the Śnieżka Group’s Income Statement:
| Three months ended March 31, 2024 | Three months ended March 31, 2023 | Change (YoY) | |
| Sales Revenue | 172,275 | 201,405 | -14.5% |
| Cost of Sales | 88,950 | 116,456 | -23.6% |
| Sales Costs | 35,827 | 33,163 | 8.0% |
| General Management Costs | 29,950 | 24,716 | 21.2% |
| Result from Other Operating Activities | (587) | 470 | -224.9% |
| Financial Result | (4,235) | (6,211) | -31.8% |
| Share in Profit of an Associate | 44 | (2) | -2300.0% |
| Gross Profit | 12,770 | 21,327 | -40.1% |
| Operating Profit (EBIT) | 16,961 | 27,540 | -38.4% |
| Operating Profit + Depreciation (EBITDA) | 26,312 | 37,479 | -29.8% |
| Income Tax | 2,210 | 4,100 | -46.1% |
| Net Profit, including | 10,560 | 17,227 | -38.7% |
| profit attributable to shareholders of the parent company | 9,931 | 16,310 | -39.1% |
Over PLN 0.5 Billion in Dividends Paid in Group’s History
At the ordinary general meeting of FFiL Śnieżka SA held on April 26, 2024, the company’s shareholders passed a resolution to pay a dividend from the profit for 2023 in the total amount of PLN 39,998,356.26, i.e., PLN 3.17 per share. The dividend date was May 15, 2024, and its payment will be made on May 29, 2024. Including the upcoming payment, a total of PLN 544.2 million has been distributed to the company’s shareholders since its debut on the Warsaw Stock Exchange.
Since our debut on the Warsaw Stock Exchange, we have consistently shared profits with our shareholders. The total amount of dividends paid, including the latest tranche planned for May 29, exceeds PLN 0.5 billion. This reflects our commitment to ensuring that shareholders benefit from the company’s dynamic growth and reap tangible rewards from our collective success. Despite the difficulties observed in Q1 2024, we look to the future with optimism. We are confident that expanding the distribution model will add value in the long term, as will the further development of our product offering in other sales channels, summarized Piotr Mikrut.
