Fabryka Farb i Lakierów Sniezka (SKA) Q2 2024 earnings summary

Executive summary

• H1 2024 revenues declined by 7.3% year-over-year to PLN 402.6 million, mainly due to lower sales volumes, unfavorable currency effects, and challenging market conditions.

• Net profit was PLN 31.7 million, a 23.2% decrease year-over-year, impacted by higher selling and administrative costs.

• Market share in Poland was maintained, with Q2 2024 revenues in Poland up 4.1% year-over-year.

• Dividend of PLN 39.99 million (PLN 3.17 per share) paid in May 2024 from 2023 profits.

• Strategic goals for 2028 include PLN 1.1 billion in consolidated net revenues and an 18% EBITDA margin.

Financial highlights

• H1 2024: revenues PLN 402.6 million (-7.3% y/y), EBITDA PLN 67.4 million (-15.9% y/y), net profit PLN 31.7 million (-23.2% y/y).

• Gross margin improved to 48.4% (+5.6 p.p. y/y), but net profit margin fell to 7.9% (from 9.5%).

• EBITDA margin at 16.7% (vs. 18.4% y/y); net debt/EBITDA improved to 2.08 (from 2.35 y/y).

• Q2 2024 revenues: PLN 230.4 million (-1.2% y/y); net profit: PLN 21.2 million (-12% y/y).

• Total assets: PLN 877.7 million (+6.1% y/y); equity: PLN 358.9 million (+6.5% y/y).

Outlook and guidance

• Strategic targets for 2028 reaffirmed: PLN 1.1 billion in revenues, 18% EBITDA margin, and market share above 20% in Poland, Hungary, and Ukraine.

• No financial forecasts for 2024 due to macroeconomic uncertainty, especially regarding consumer demand and the war in Ukraine.

• Dividend policy and investment plans to be maintained, assuming stable business conditions.

• Key external risks include macroeconomic factors, geopolitical instability, and regulatory changes.