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Śnieżka SASniezka paint to decide on strategic goals revision after 2025; revenue could be challenge
After 2025 ends, listed paint producer Sniezka wants to look at the targets adopted in the strategy until 2028 and decide whether they need to be revised, management representatives told a videoconference. The challenge may be to reach the level of PLN 1.1 billion (EUR 257.7 mln) in revenues. Consumer sentiment will be key to improving the market and performance in 2025.
"After the end of this year, we are going to look at the strategic targets and decide whether they need to be revised, primarily in terms of net revenue. When we set the targets, we were more optimistic about how the market would behave in our key countries. Depending on what happens this year, we will refer to this at the beginning of next year," CEO Piotr Mikrut said.
"We are already meeting some of the targets, but what might be a challenge is to reach the PLN 1.1 billion revenue level," he added.
Sniezka's strategic goals in force until 2028 include revenues of PLN 1.1 billion (EUR 257.7 mln) and an EBITDA margin of 18 percent.
The company's EBITDA in the first quarter of 2025 amounted to PLN 26.6 million (EUR 6.2 mln) and revenues came out to PLN 172.2 million (EUR 40.3 mln). The parent company's net profit was PLN 10.6 million (EUR 2.5 mln) and EBIT was PLN 17.1 million (EUR 4 mln).
The gross margin on sales in the first quarter of 2025 was 49.5 percent, up from 48.4 percent in the prior year period. The EBITDA margin increased by 0.2 percentage points to 15.5 percent.
In Poland, sales revenues amounted to PLN 128.5 million (EUR 30.1 mln), up by 3.3 percent year on year.
In Hungary, revenues fell by 17.9 percent year on year to PLN 18.9 million (EUR 4.4 mln), mainly due to the continuing unfavourable macroeconomic conditions affecting weakening consumer sentiment and the strengthening of the zloty against the forint.
"We are aware of the difficult and challenging situation in Hungary and are undertaking a number of activities that should lead to a reversal of the trend in the future," the CEO said.
The CEO assessed that the situation in Ukraine is stable and only the end of the war could bring a significant improvement.
In the medium term, the group's performance is expected to be influenced by external factors such as GDP growth, inflation and interest rates, currency exchange rates, commodity prices or the geopolitical situation.
"We are seeing some optimism, interest rate cuts have started, and consumer sentiment will also have an impact," Mikrut assessed.
Key to improving performance is the macro environment.
"As far as Poland and Hungary are concerned, it is mainly about improving consumer sentiment and purchasing power. The economy in general in these two markets would have to improve significantly to trigger a clear improvement in 2025," added the CEO.
At the end of March, the group's net debt/EBITDA ratio stood at 1.58 against 1.88 in the prior year period.
General and administrative expenses in the first quarter increased by 4.8 percent to PLN 31.4 million (EUR 7.4 mln).
As reported by the management board, the driver of the costs growth is mainly wage increases.
"It is to be expected that general and administrative expenses will have an upward trend, as I do not assume that salaries will start to fall. The key thing is for revenues to show more growth than costs," Mikrut added.
doa/ han/ ao/