Selena Group’s financial growth

Selena Group’s financial growth

Selena Group, a global manufacturer and distributor of construction chemicals in Poland has achieved cumulative sales revenue of PLN 832 m in the first three quarters of 2013, which represents an increase of PLN 26.8 m when compared with the same period of 2012.

Cumulatively, EBIT profit amounted to PLN 44 m and increased by PLN 13.6 m year on year. Net profit amounted to PLN 25.3 m, which represents an increase of PLN 17 m. Selena’s situation in the first nine months of 2013 was influenced by the economic situation of international markets. The increase in sales is the result of organic growth – improvements in the efficiency of the sales force and expansion of the product range into the Central and Eastern European markets, with particular emphasis on Eastern Europe. The largest increases were recorded in the Russian, Ukrainian and Kazakh markets, an overall increase of approximately 15%. There were also early signs of recovery in Western Europe in Spain, among other counties. In the Middle East, Selena recorded growth in Turkey, despite the turbulent political situation in the first half of the year. In addition, strong sales in North and South America influenced its financial results. Stagnation was still present in the construction sector in Central Europe, and was also visible in the Polish market.

After three quarters of 2013 the sales gross profitability increased, amounting to 29.1%, compared to 27.8% in the corresponding period of 2012. This is primarily the result of improvements in the viability and functioning of the central purchasing department and stable commodity prices. Within 9 months of 2013, Selena generated a net profit of PLN 25.3 m. Exchange losses and the weakening of ruble and Turkish lira in relation to euro had a negative effect.

“Selena is improving its performance from quarter to quarter, due to consistent activity and process optimization. With the diversification of markets, we managed to maintain sales growth despite the stagnation in Europe and the slowdown in even such a booming market as Russia. We welcome the acceptance of Selena’s strategy for the years 2014-2016 by the Supervisory Board” says Jarosław Michniuk, CEO of Selena FM SA, the parent entity of the Selena Group. “The newly adopted strategy sets out a new mission and clearly signals Selena’s activities and program for the coming years. Our new mission is Together we build faster and better. It means that we will more effectively recognize the needs of our customers and deliver products tailored according to global trends and user needs in the specific areas of construction, finishing and repair works. With our current geographic markets and product portfolio, we will focus on programs to improve product competitiveness and to increase the efficiency of the group. This will enable us to further improve our profitability and financial performance.”

The fourth quarter of the year is characterized by a lower sales gross profitability, in line with seasonal trends in the construction industry. Selena will use the end of 2013 to prepare plants for the new season through maintenance and repair of machines. According to the forecasts of the European Commission and the IMF, 2014 promises an improved economic situation. Selena hopes that profitable trends will be also reflected in the building materials industry.