Sniezka posts upbeat results

2009-11-16



Fabryka Farb i Lakierow Sniezka reported enhanced financial results for the first three quarters of 2009 with domestic operations being the principal factor driving up revenues, according to Puls Biznesu.
On the other hand, in the last few months the company has seen its sales shrink in Ukraine, where it enjoys a 19.5% share of the market. Sniezka has thus abandoned plans to invest in advertising campaigns in Ukraine and Belarus, thereby trimming its sales costs by PLN 8m (€2m). The producer's plans for next year envisage revenue growth of approx. 5-6%, although this will not be easy to achieve in light of the present stagnation on the market. In response to the crisis, the company has shelved plans to build a water-borne paint factory in Romania, which would have cost an estimated PLN 25m (€6.1m). On the other hand, the company's senior management does not intend to abandon its plans for acquisitions – its agenda includes the purchase of foreign firms, including businesses from Hungary, the Czech Republic, Bulgaria, Romania and Croatia with annual revenues of approx. €10m.
In Q1-Q3 the company generated revenues of PLN 447.5m (€109.1m) and posted a net profit of PLN 44.7m (€10.9m), which translates into growth of 2.7% and 7.7%, respectively, compared with the corresponding period of the previous year.

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