- Śnieżka Group generated sales revenue of 647.7 million PLN in the first to third quarters of 2024, indicating a year-on-year decrease of 8.1%. In the analyzed period, the EBITDA result was 126.5 million PLN, and net profit was 67.4 million PLN, which is respectively 12.8% and 18.3% less compared to the corresponding period of the previous year.
- The decline in results is mainly due to lower volume sales across the market and appreciation of the złoty against the forint and hryvnia. Additionally, relatively unfavorable macroeconomic conditions continue to persist.
- Despite adverse external conditions, Śnieżka Group has maintained its market share in Poland.
- In the first three quarters of 2024, Śnieżka Group achieved a gross sales profitability of 49.1%, which signals a rise of 4.8 p.p. compared to the previous year.
“The market situation remains difficult, which is reflected in the declining volume of sales across the entire market. Key factors influencing demand for our products are the condition and sentiments of consumers, which are influenced by high-interest rates and low real wage growth. Although consumer sentiments are slowly improving, it is not yet translating into purchasing decisions in our industry. Currently, we see that maintaining sales volumes throughout 2024 at last year’s level will be impossible -” comments Joanna Wróbel-Lipa, Vice President of the Management Board of Śnieżka SA.
“At the same time, it is worth emphasizing that gross profitability from sales in the analyzed period was 49.1%, which is 4.8 p.p. more compared to the previous year. The main reasons for this growth are a stronger złoty against the euro, improved production and logistics efficiency, optimal pricing policy and effective cost control. However, maintaining such profitability will be difficult in the coming quarters” – adds Wróbel-Lipa.
The drop in the Group’s profitability in the first three quarters of 2024 resulted from a decrease in sales, but also from a 10% increase in sales and administration costs compared to the previous year. The EBITDA profitability in the analyzed period was 19.5%, which constitutes a decrease of 1.1 p.p. 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, the value of domestic sales reached 464.6 million PLN, indicating a decrease of 4.3% compared to the previous year and accounting for 71.7% of consolidated revenues. Sales in the Ukrainian market amounted to 64.5 million PLN and were 8.9% lower compared to the corresponding period of the previous year. Revenues in Hungary decreased by 19.7%, reaching 84.8 million PLN.
The Group is noting a stabilization of raw material prices with the exception of sporadic, small price increases of pigments, titanium dioxide, dolomite fillers and calcium carbonates. The availability of raw materials and packaging has greatly improved and incidental difficulties in acquiring some materials do not affect the continuity of production. In addition, a stronger exchange rate of the złoty against the euro, in which raw material purchases are mainly settled, supports cost stability.
In the first three quarters of 2024, the Group’s investment expenditures (CAPEX) amounted to 23.2 million PLN. Expenditures for the whole of 2024 will be lower than the assumed 40 million PLN.
The key elements of the Śnieżka Capital Group’s statement of profit or loss are:
| 9-month period ending on September 30, 2024 | 9-month period ending on September 30, 2023 | Change (YoY) | |
| Sales revenues | 647,680 | 705,067 | -8.1% |
| Own cost of sales | 329,569 | 392,683 | -16.1% |
| Selling and general administrative costs | 217,676 | 197,862 | 10.0% |
| Result on other operating activities | (2,050) | 1,343 | -252.6% |
| Result on financial activities | (14,731) | (16,122) | -8.6% |
| Share in the profit of an associated entity | 190 | 325 | -41.5% |
| Gross profit | 83,844 | 100,068 | -16.2% |
| Operating profit (EBIT) | 98,385 | 115,865 | -15.1% |
| Operating profit + depreciation (EBITDA) | 126,507 | 145,145 | -12.8% |
| Income tax | 16,435 | 17,598 | -6.6% |
| Net profit, including | 67,409 | 82,470 | -18.3% |
| profit attributable to shareholders of the parent entity | 64,643 | 77,021 | -16.1% |
“The key factor influencing the financial results is the situation in the decorative paint market. From an operational point of view, the company consistently invests in building competitive advantages such as strong brands, suitable product portfolio as well as modern, digitized production and logistics processes. Any improvement in market conditions should result in positive financial results next year – summarizes Wróbel-Lipa.
Source: https://managerplus.pl/sniezka-publikuje-wyniki-za-trzy-kwartaly-2024-roku-84057
