The Śnieżka Group generated PLN 172.3 million ($44 million) in sales revenues in the first quarter of 2024, which means a year-on-year decline of 14.5%. In the analyzed period, EBITDA amounted to PLN 26.3 million ($6.7 million) and net profit amounted to PLN 10.6 million ($2.7 million), i.e. 29.8% and 38.7% less, respectively, compared to the same period last year.

The decline in results is a consequence of the strengthening of the Polish zloty against the forint and hryvnia and the implementation of changes in the distribution model on the independent market in Poland. However, in the long term, expanding the distribution model is an important step in the further development of the group and building its competitive advantages.

“From the beginning of 2024, we have implemented changes in the distribution model on the independent market in Poland,” said Piotr Mikrut, chairman of the board. “Selected retail outlets that were previously serviced indirectly by distributors can now make purchases directly from the Śnieżka Group.

“The extension of the model was possible thanks to investments in the Logistics Center and IT systems,” added Mikrut. “The change introduced on the independent market had a negative impact on the group’s results in the first quarter of this year. This trend may also be visible in the subsequent quarters of 2024, but starting from April, we do not observe a negative impact of the model extension on revenues. In the long term, this change is an important step in the further development of the group and building its competitive advantages.”

The value of domestic sales reached PLN 124.4 million ($31.5 million), i.e. 16.1% less year on year, accounting for 72.2% of consolidated revenues. In Ukraine, the group recorded an increase in revenues compared to the previous year. Sales on this market amounted to PLN 18.9 million, which means an increase of 13.8% compared to the first quarter of 2023. However, in Hungary, revenues decreased by 14.8% year on year, reaching PLN 23 million.