Selena: profit slides in Q3

2009-11-23



Selena, a company specialising in the production and distribution of construction chemicals, reported a net profit of PLN 8.9m (€2.1m) in Q3 2009, which translates into a drop of 36%. Simultaneously, however, its consolidated net profit after the first three quarters of the year amounted to PLN 21m (€5.1m), as compared with PLN 17.3m (€4.2m) during the same period of 2008, we read in Parkiet.
The company's senior management attributes the Q3 downturn to negative exchange rate differences. During the analysed period, the group's profitability was 4.4% and the management does not project any increase in this value in the near future. On the other hand, it does expect to bolster its position on the market in the coming two-three years.
The final months of 2009 will not bring any major changes in the group's results as this is usually an inauspicious time for companies operating in this sector of the economy. Moreover, for the last 12 months Selena has been trying to recover PLN 28m (€6.7m) in cash from a Russian distribution firm – the company's senior management is hoping to resolve the issue by the end of December.
The group is currently active on the international market and its main areas of operations are European Union countries, which account for 57.7% of its sales. Its next most important markets are Eastern Europe and Asia, where the company generates 37.6% of its turnover. In the coming quarters Selena wants to continue focusing on organic growth and is also eying further acquisitions of companies from the branch with a view to boosting its future revenues.

Find more news and analyses in internet service Construction Poland Online and pdf newsletter Polish Construction Review.