The Śnieżka Group generated PLN 857.8 million ($215 million) in sales revenues in 2023, a year-on-year increase of 8.3%. In the analyzed period, the EBITDA result amounted to PLN 159.4 million ($40 million) and the net profit was PLN 83.5 million, ($21 million) i.e. 50.1% and 102.3% more, respectively, compared to 2022.

With the publication of the annual report, the Śnieżka Group presented its strategic goals for 2028, including achieving consolidated net revenues of PLN 1.1 billion, EBITDA margin of 18%, and increasing market share to more than 20% in key countries of operation, i.e. Poland, Hungary and Ukraine.

“In the challenging environment of high inflation and interest rates, which led to weakened consumption, we achieved very good results in 2023,” said Joanna Wróbel-Lipa, vice president of the Management Board of Śnieżka SA. “We are particularly pleased with the achievement of the goal of returning to the profitability levels achieved before the pandemic.

“The EBITDA margin in the analyzed period amounted to 18.6%, which means an increase year on year by 5.2 pp, and is a record result, above our expectations and the average for the industry,” added Wróbel-Lipa. “Achieving this result was possible thanks to the strong foundations built in previous years. These include, among others: strong brands and effective sales and marketing strategies, including pricing. We have consistently adjusted the prices of our products, responding to the rising costs of production, transport and wages.”

“Advanced automation and digitalization also played a key role, especially in the areas of logistics and production,:” noted Zdzisław Czerwiec, vice president of the Management Board of Śnieżka SA. “The premiumization trend, which has been ongoing for several years and observed on our key Polish market, has also proven to be consistently beneficial for our Group. It involves increased consumer interest in higher quality products, which fits perfectly with the offer of our Magnat and Vidaron brands.”

The sales growth was largely driven by a 10% year-on-year increase in turnover in the group’s key Polish market. The value of domestic sales reached PLN 591.1 million ($148 million), which represented 69% of consolidated revenues.

In Ukraine, after a previous period of decline, the group recorded a significant increase in revenues compared to the previous year. Sales on this market amounted to PLN 88.4 million, which means an increase of 29.6% compared to 2022. However, in Hungary, high inflation, which reached 17.6% in 2023, had a negative impact on the purchasing power of consumers. As a result, revenues from the Hungarian market decreased by 6.3% year on year, reaching PLN 128.2 million.

At the end of 2023, the group’s net debt/EBITDA ratio was 1.38 compared to 2.66 a year earlier.