Fabryka Farb i Lakierów Sniezka (SKA) Q4 2024 earnings summary

Executive summary

• Sales revenue in 2024 was PLN 798.4 million, down 6.9% year-over-year, with EBITDA at PLN 142.8 million and net profit at PLN 72.1 million, a 13.7% decrease from 2023.

• Gross margin improved to 49.3% from 44.8% despite lower sales, reflecting effective pricing, cost control, and discipline.

• Results were impacted by lower sales volumes due to challenging macroeconomic conditions, unfavorable currency movements, and the ongoing war in Ukraine.

• Despite the decline, market share increased in Poland and Ukraine.

Financial highlights

• Operating profit for 2024 was PLN 105.2 million, down from PLN 121.0 million in 2023.

• EBITDA reached PLN 142.8 million, with a net debt/EBITDA ratio of 1.45.

• Q4 2024 net profit rose 363.1% y/y to PLN 4.7 million, with EBITDA up 14% y/y.

• Dividend paid for 2023 was PLN 3.17 per share, totaling PLN 39.99 million.

• Cash and cash equivalents at year-end were PLN 55.6 million, down from PLN 65.7 million.

Outlook and guidance

• Strategic goals for 2028 include net revenue of PLN 1.1 billion, EBITDA margin of 18%, and market share above 20% in key markets.

• Dividend policy and investment plans remain unchanged, assuming stable business conditions.

• Management expects continued market challenges due to inflation, supply chain disruptions, and geopolitical risks.

• No guidance on revenue or profit for 2025 was provided.

• Main external risks include macroeconomic volatility, inflation, exchange rates, and geopolitical tensions, especially the war in Ukraine.