Fabryka Farb i Lakierów Sniezka (SKA) Q1 2026 earnings summary

Executive summary

• Consolidated sales revenue reached 164,757 thousand PLN, down 4.3% year-over-year, mainly due to lower demand in Poland and Ukraine, while Hungary and other markets saw double-digit growth.

• Net profit rose 29.8% year-over-year to 14,028 thousand PLN, with EBIT up 8.6% and EBITDA up 7.9% despite revenue decline, driven by lower cost of goods sold and improved financial results.

• Geopolitical uncertainty, especially the ongoing war in Ukraine and new conflict in the Middle East, negatively impacted results and increased raw material and energy costs.

• The Group's main markets are Poland (73.5% of revenue), Hungary (13.2%), and Ukraine (9.0%).

• Investment outlays (net CAPEX) for Q1 2026 were 5,271 thousand PLN.

Financial highlights

• Revenue: 164,757 thousand PLN (-4.3% y/y); Net profit: 14,028 thousand PLN (+29.8% y/y); EBIT: 18,568 thousand PLN (+8.6% y/y); EBITDA: 28,739 thousand PLN (+7.9% y/y).

• SG&A costs rose slightly by 0.7% y/y to 67,781 thousand PLN.

• Gross margin improved to 52.7% (+3.2 p.p. y/y); Net margin at 8.5% (+2.2 p.p. y/y); EBIT margin at 11.3% (+1.4 p.p. y/y); EBITDA margin at 17.4% (+1.9 p.p. y/y).

• ROA increased to 9.9% (+1.3 p.p. y/y); ROE decreased to 18.8% (-0.5 p.p. y/y).

• Net cash flow was negative at -6,500 thousand PLN, but improved from -28,518 thousand PLN a year earlier.

Outlook and guidance

• No financial forecasts published for 2026.

• Strategic goals for 2030: consolidated net revenue of 1.1 billion PLN, EBITDA margin of 18%, and over 20% market share in Poland, Hungary, and Ukraine.

• Management highlights ongoing uncertainty due to macroeconomic and geopolitical factors, especially in Ukraine and the Middle East.

• The company is preparing for the main sales season, with a solid operational and debt position.

• Management notes ongoing low demand for decorative products but expects improvement as the season progresses.