Wittchen Group estimates PLN 112.1 mln in revenue in Q2 2024, up 2 pct y/y

Manufacturer of exclusive leather products Wittchen Group estimates that it had revenues of PLN 112.1 million (EUR 26 mln) in the second quarter of 2024, up 2 percent year on year, the company said in a market filing.

In the second quarter of 2024, Wittchen Group's sales in the retail segment fell by 1 percent year on year to PLN 94.8 million (EUR 22 mln), while sales in the B2B segment amounted to PLN 17.3 million (EUR 4 mln), compared to PLN 14.5 million (EUR 3.4 mln) a year earlier, an increase of 19 percent.

YTD, total sales revenue fell by 1 percent to PLN 205.1 million (EUR 47.6 mln). In the retail segment, sales revenue amounted to PLN 179.8 million (EUR 41.7 mln) and was also down by 1 percent year on year. The B2B segment, on the other hand, recorded a 2 percent year on year decline to PLN 25.2 million (EUR 5.9 mln) in H1 2024.

"In the second quarter (...) we recorded a slight increase in sales revenue, despite a much more challenging market environment than a year ago, as evidenced by the several percent year on year decline in retail sales reported by the CSO in the textile, clothing and footwear category," said Jedrzej Wittchen, the company's CEO, quoted in the press release.

"We are observing persistently high consumer price sensitivity, accompanied by aggressive pricing policies of our competitors. In turn, the appreciation of the Polish zloty against the euro had an unfavourable impact on the value of foreign sales (expressed in the Polish currency), accounting for approximately one-fifth of our group's revenue," he added.

As reported, the average euro exchange rate denominated in PLN in the first half of this year was nearly 7 percent lower than in the corresponding period of 2023.

"Against this background, the Wittchen Group's stable sales should be considered a good result. However, it is below our ambitions. Our goal remains to increase sales throughout 2024. We are consistently pursuing our growth strategy, focusing on development in the e-commerce channel and expansion in foreign markets," said the CEO.

"This year, we have already launched our own e-store in Austria, as well as the first Wittchen stationary shops in Germany and Austria, thus strengthening our presence in German-speaking countries. We also intend to open further showrooms in Romania soon," he added.

mcb/ han/