Letter of the President of the Management Board
Dear Shareholders,
The year 2023 was successful for us. Up against market challenges such as high inflation and interest rates, which resulted in weakened consumption, we demonstrated good preparation. The solid foundations built over the years turned out to be the key factor of our success.
These include strong and valued brands by our customers and effective sales and marketing strategies, including pricing. We have consistently implemented changes in the prices of our products, responding to rising production costs as well as the persistently high costs of transportation and wages.
Also, it’s impossible to underestimate the high degree of automation and digitization, including: in the field of logistics and production processes. The objective that we have successfully reached is achieving the margin levels from previous years.
The premiumization trend observed on the key Polish market has consistently been beneficial to our Group’s performance, resulting in opting for higher quality products by our consumers, which is perfectly matched by, among others, offer of our Magnat and Vidaron brands.
In 2023, the Śnieżka Group generated sales revenues of PLN 857.8 million, which accounts for an 8.3% increase compared to the previous year. Sales growth was primarily driven by a 10% increase in turnover in our key Polish market, which generates 69% of our consolidated sales.
In Ukraine, we recorded a significant boost in revenues on a year-on-year basis, after a previous period of decline. Sales on this market amounted to PLN 88.4 million, which accounts for a 29.6% increase compared to 2022.
High inflation in Hungary, which reached 17.6% in 2023, resulted in a decline in consumers’ purchasing power. Revenues from Hungary amounted to PLN 128.2 million and were 6.3% lower than the previous year.
Our commitment to developing sustainable products is constantly deepening. The ESG strategy constitutes an integral part of Śnieżka's operations, addressing the growing expectations of consumers and the need to protect the environment.
In 2023, our efforts in this area were appreciated by EcoVadis, the leading global provider of ESG ratings, which awarded Śnieżka the EcoVadis Gold Medal, placing us in the top 5% of companies that passed the certification process.
Together with the publication of the annual report, we decided to present strategic objectives for the Śnieżka Group, of which our approach to sustainable development is a complementary part. Striving to achieve the adopted goals will contribute to increasing the financial value of our Group and strengthening its position on the market.
We believe that through joint efforts, commitment and focus on our strategic goals, we will continue to create added value for our shareholders, employees and the community in which we operate.
Thank you for your support and trust, which are an invaluable source of motivation for us to go on with working and developing.
Piotr Mikrut
President of the Management Board