Śnieżka publishes results for H1 of 2024
Śnieżka Group generated PLN 402.6 million in sales revenues in H1 2024, less by 7.3% y/y. In the period subject to the review, EBITDA amounted to PLN 67.4 million and net profit to PLN 31.7 million, less by 15.9% and 23.2%, respectively, y/y.
The deterioration of results is primarily the aftermath of the decline in sales in volume terms across the market, as well as the strengthening of PLN against HUF and UAH. Relatively unfavourable macroeconomic conditions also continue. Despite difficult external conditions, the Śnieżka Group maintained its share in the Polish market
In Q2 2024 alone, sales in Poland amounted to PLN 161.5 million, higher by 4.1% y/y. The Group’s net debt/EBITDA ratio fell to 2.08 at the end of June 2024 from 2.35 a year earlier.
Maintained share in the Polish market despite difficult external conditions
The market of decorative paints is struggling with a decrease in sales volumes, but recent industry data indicates that the pace of this decline has slowed to a single-digit level. The strong position of PLN against the EUR, the currency in which the Group mostly purchases raw materials, allows it to better control production costs. On the contrary, the strengthening of PLN against the UAH and HUF has an adverse effect, reducing revenues, since revenues from the Hungarian and Ukrainian markets, when converted into PLN, are lower.
Despite difficult external conditions, we maintained our share in the domestic market. In Q2 alone, we recorded an increase in sales in Poland by 4.1%, to PLN 161.5 million. During the analyzed period, we also reduced our debt in terms of net debt to EBITDA, and we implemented CAPEX expenses according to plan. It is also worth adding that the value of the dividend paid in May was almost PLN 40 million, which represented PLN 3.17 per share.
In addition to the decline in sales, by a 13% year-on-year the Group’s profitability in H1 2024 was reduced as the result of increase in selling and general administrative costs. EBITDA profitability in H1 2024 was 16.7%, less by 1.7% y/y, yet this is a very good result compared to the industry. In the period subject to the review, the Group generated a 48.4% gross sales profitability, higher by 5.6% y/y, regardless of the difficult market environment.
Domestic sales reached PLN 285.9 million, less by 5.8% y/y, representing 71.0% of consolidated revenues. In Ukraine, the Group recorded an increase in revenues compared to the previous year. Sales in the market in question amounted to PLN 42.9 million, higher by 5.2% compared to H1 2023. In Hungary, revenues fell by 18.0% y/y, reaching PLN 53.2 million.
– Current market conditions are largely shaped by purchasing power and consumer sentiment, which affect limited demand in our industry. These factors are influenced by the geopolitical situation, real wage growth and the currently observed demand structure, where customers are more likely to opt for services over durable goods. In such an environment, the challenge is to maintain sales volumes comparable to 2023 – sums up Joanna Wróbel-Lipa.
