Sales volumes

In 2023, the Śnieżka Group generated sales revenues of PLN 857,773 thousand, i.e. 8.3% higher than in 2022.
The consolidated performance was positively influenced by higher sales on the Polish market, which has a dominant share in the Group’s total revenues, and significantly higher sales on the Ukrainian market, which is rebuilding its share in the Group’s revenue structure. Lower sales on the Hungarian market had a negative impact on revenues in 2023.

The implementation of a long-term marketing and sales strategy, one of the elements of which is the pricing policy, had a positive impact on the performance of the season and the entire year 2023. It includes, inter alia: consistent implementation of product price changes in response to rising production costs, as well as due to higher costs of running a business (mainly costs of transport, logistics, financing and salaries).

It is worth emphasizing that unfavourable macroeconomic conditions continued throughout the entire year 2023, affecting the entire industry in which the Group operates. This includes: high inflation contributing to a decline in consumers’ purchasing power and still unfavourable – although improving compared to last year – consumer sentiment indicators reflected in surveys. Throughout the 2023 season, the demand in the industry was influenced by the trend of premiumization, i.e. consumers buying higher quality products, observed primarily in Poland.

In spite of the difficult economic environment, in 2023 the Group increased its shares in Polish and Ukrainian markets.

The Group’s performance in 2023 was also significantly affected by the unstable geopolitical environment, including the pending armed conflict in Ukraine and its effects on the entire region of Central and Eastern Europe, where the Group’s key markets are located.

The sales volumes in the period January-December 2023 on the main markets (and the most important factors that contributed to them) are as follows:

(69% share in the revenue structure, +1.1% y/y)

Sales revenues generated by the Group on the Polish market amounted to PLN 591,090 thousand and thus were 10% (PLN 53,870 thousand) higher compared to the previous year.

According to the Group’s own data, this performance is better than the performance of the entire decorative products market (home decoration items), which allowed the Group to increase its market share in Poland. The increase in sales value in Poland resulted predominantly from an appropriately shaped marketing and sales strategy, including pricing one.

(14.9% share in the revenue structure, -2.4% y/y)

In Hungary, the Group’s sales revenues amounted to PLN 128,153 thousand and were by 6.3% (i.e. by PLN 8,626 thousand) lower than in 2022. This is principally a consequence of the exceptionally difficult macroeconomic environment. The significant weakening of purchasing power and deterioration of sentiment among Hungarian consumers were the aftermath of record high inflation. Hungarian consumers’ postponement of renovation plans last year had a negative impact on demand for products of the entire industry.

According to the Group’s own data, this performance is worse than the performance of the entire market of decorative paints and agents for wood protection and decoration, which resulted in a slight decline in the Group’s market share.

(10.3% share in the revenue structure, +1.7% y/y)

In Ukraine, the Group generated revenues of PLN 88,439 thousand, i.e. 29.6% (PLN 20,194 thousand) higher compared to 2022. The performance of 2023 is difficult to compare with 2022 due to the war on the territory of this country. At the outset of the war, the Śnieżka Group temporarily suspended the operational activities of the Śnieżka-Ukraina company, suspending deliveries and production on February 25, 2022. On April 11, 2022, the Ukrainian company was the first to resume both production (initially for one shift, then full-time) and sales on the market in question.

In 2023 the share of the Ukrainian market in the Group’s revenue structure increased to 10.3% i.e. it approached the levels from the years preceding the war.

Given the situation in Ukraine, the performance of the Group on this market in 2023 turned out to be a positive surprise. There was an increase in demand for decorative paints and construction chemicals compared to the level recorded immediately after the outbreak of the war and throughout 2022.
This is primarily the effect of a moderately better situation in the western and central regions of Ukraine, where renovation works have been partially recommenced.  The Management Board of the Company indicates, however, that the circumstances on the Ukrainian market remain uncertain and demanding.

On other markets („Other” segment), the Group generated sales revenues of PLN 50,091 thousand, i.e. 1.3% (PLN 649 thousand) higher than the year before. The share of other markets in the revenue structure amounted to 5.8%, -0.4% y/y). In total, the Group’s revenues generated in 2023 on foreign markets accounted for 31% of its total revenues.

In the reporting period ended as at 31 December 2023 no changes in the presentation of the Group’s operating segments occurred.

Sales revenues of the Śnieżka Group by countries in PLN ‘000

for the period of 12 months ended as at 31 December 2023 Structure for the period of 12 months ended as at 31 December 2022 Change (y/y)
Poland 591 090 69.0% 537 220 10.0%
Hungary 128 153 14.9% 136 779 -6.3%
Ukraine 88 439 10.3% 68 245 29.6%
Other 50 091 5.8% 49 442 1.3%
Total sales 857 773 100.0% 791 686 8.3%

The Group’s sales structure is dominated by decorative products. In 2023, the Group generated revenues from their sales in the amount of PLN 694,659 thousand – i.e. 11.4% (PLN 71,116 thousand) higher than the year before. Decorative products accounted for 81% of the Group’s total sales revenues. Construction chemicals featured the second highest share i.e. 12% (PLN 102,803 thousand) in the sales structure.  This volume is lower by 3.5% (PLN 3,694 thousand) compared to 2022.

Sales revenues of the Śnieżka Group by product categories (in PLN ‘000)

            the period of 12 months ended as
at 31 December 2023		 Structure the period of 12 months ended as at 31 December 2022 Change
(y/y)
Decorative products 694 659 81.0% 623 543 11.4%
Construction chemicals 102 803 12.0% 106 497 -3.5%
Industrial products 7 485 0.9% 9 820 -23.8%
Goods 38 833 4.5% 39 062 -0.6%
Other revenues 7 661 0.9% 5 887 30.1%
Materials 6 332 0.7% 6 877 -7.9%
Total sales 857 773 100.0% 791 686 8.3%
In terms of volume, the sales of the Group’s products in 2023 amounted to 113.7 million l/kg and was lower by 6.5% compared to 2022.  In relation to the increase in the value of revenues by 8.3% y/y, the quantitative result obtained illustrates the scale of price increases in the industry of decorative paints and products for the protection and decoration of wood in all markets of the Group and the trend of continued premiumization in Poland.

In the reporting period, the Group sold 67.236 million l/kg of decorative products (-4.4% y/y), 46.270 million l/kg of construction chemicals (-9.1% y/y) and 0.217 million l/kg of other industrial products (-37.6% y/y).  The sale of goods, materials and services in terms of quantity is not disclosed due to the variety of measurement units used (tons, litres, pcs.) and the fact that it is not the main object of the Group’s business.

Product sales structure in the Śnieżka Group by categories in thousand litres / kilograms.

Breakdown for the period of 12 months ended as at 31 December 2023 for the period of 12 months ended as at 31 December 2022 % change
(y/y)
Decorative products 67 235,8 70 347,0 -4.4%
Construction chemicals 46 269,9 50 910,8 -9.1%
Industrial products PLN 217.1 PLN 348.2 -37.6%
Total sales 113 722,8 121 606,0 -6.5%

FFIL ŚNIEŻKA SA:

  • the sale of products and goods (based on agreed transfer prices) to Śnieżka Trade from Colours Sp. z o.o., responsible in the Group for marketing and sales to customers and other Group companies;
  • dividends received from subsidiaries.

Additional revenues, constituting a small share of the total, are generated by FFiL Śnieżka SA from the sale of raw materials for production and services to its subsidiaries.

In 2023 FFIL ŚNIEŻKA SA generated sales revenues in the amount of PLN 568,736 thousand, i.e. 11.3% (PLN 57,816 thousand) higher than in 2022.The predominant share in the Company’s total revenues in the reporting period was the sale of products and goods to Śnieżka ToC, i.e. 90.5% recognized in the „Poland” segment.  Compared to the previous year, sales in this segment increased by 11.2%, i.e. by PLN 55,743 thousand.

In addition, in the reporting period FFiL Śnieżka SA also generated revenues of PLN 13,738 thousand – mainly from the sale of materials (raw materials) to its subsidiaries located in Hungary, Ukraine and Belarus. The Company’s revenues from sales to foreign markets (segments: „Hungary”, „Ukraine” and „Other”) accounted for 2.5% of its total revenues.

Sales revenues of the FFIL ŚNIEŻKA SA by countries in PLN ‘000

for the period of 12 months ended as at 31 December 2023 Structure for the period of 12 months ended as at 31 December 2022 Change (y/y)
Poland 554 998 97.5% 499 255 11.2%
Hungary 1 565 0.3% 2 642 -40.8%
Ukraine 11 678 2.1% 8 391 39.2%
Other 495 0.1% 632 -21.7%
Total sales 568 736 100.0% 510 920 11.3%

In the breakdown by product categories, the Company’s sales structure – as in the case of the entire Group – was dominated by decorative products, whose share in revenues amounted to 78.5% (+3,2% r/r). The next places in the sales structure were taken by: construction chemicals (6.1%), goods (5.9%) and other revenues (6.1%).

Sales revenues of the FFIL ŚNIEŻKA SA by product categories in PLN ‘000

for the period of 12 months ended as at 31 December 2023 Structure for the period of 12 months ended as at 31 December 2022 Change (y/y)
Decorative products 446 575 78.5% 384 903 16.0%
Construction chemicals 34 579 6.1% 39 752 -13.0%
Industrial products 183 0.0% 179 2.2%
Goods 33 434 5.9% 32 349 3.4%
Other revenues 34 886 6.1% 31 212 11.8%
Materials 19 079 3.4% 22 525 -15.3%
Total sales 568 736 100.0% 510 920 11.3%

In quantitative terms, the sale of the Company’s products in 2023 amounted to 58.821 million l/kg and was 9.1% lower than in the previous year. In the reporting period, the Company sold 45.995 million l/kg of decorative products (-1.1% y/y), 12.819 million l/kg of construction chemicals (-29.6% y/y) and 0.006 million l/kg of other industrial products (-19.9% y/y).
The sale of goods, materials and services in terms of quantity is not disclosed due to the variety of measurement units used (tons, litres, pcs.) and the fact that it is not the main object of the Company’s business.

Product sales structure in FFiL Śnieżka SA by categories in thousand litres / kilograms.

Breakdown the period of 12 months ended as at 31 December 2023 the period of 12 months ended as at 31 December 2022 % change
(y/y)
Decorative products 45 995,5 46 521 -1.1%
Construction chemicals 12 819,5 18 205 -29.6%
Industrial products 6,2 8,0 -19.9%
Total sales 58 821,2 64 734,0 -9.1%
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