Selena improves its financial results in the first quarter of 2014

Selena improves its financial results in the first quarter of 2014

Selena Group achieved consolidated sales of PLN 200.1 million in the first quarter of 2014, an increase of nearly 9% compared to the same period in 2013. In Poland, the group’s sales increased by over 20%.

In the analyzed period gross profit margin increased by 29.5%, a 2 percentage point increase compared to the previous year. EBIT amounted to PLN -5.4 million compared to PLN -8.1 million in the previous year. Revenues from the Selena’s sales were influenced by the situation on international markets. The largest increases were recorded in the following markets: Turkey – about 30%, the Americas – about 25% and in Central Europe, including Poland, where sales increased by over 20%.

In Western Europe, signs of recovery were observed in Spain, while in Eastern Europe and Central Asia the unstable political situation also had an impact on Selena’s sales. It is also worth remembering that the construction chemicals industry has a clear seasonality. The percentage share of quarters in the results of the Group is as follows: first quarter: 17%; second quarter: 25%; third quarter: 31%; fourth quarter: 27%.

“The first quarter was marked by the crisis in Eastern Europe and the consequent decline in sales. Still, thanks to the global reach of Selena’s business and geographical diversification, the difficulties in the East were compensated with better results in other markets” says Jarosław Michniuk, CEO of Selena FM SA, the parent entity of the Selena Group. “On other markets, we consistently implemented a new strategy, which involves increasing innovation and competitiveness of the Group’s product and thus achieving better financial results. In the next part of the year we are going to make up for the loss in net result of the first quarter.”

The net result of Selena in the first quarter of 2014 amounted to PLN -16.8 million in comparison to PLN -8.3 million in the corresponding period of the previous year. This was primarily the result of one-off events related to the political situation in Eastern Europe and Central Asia. As a result, local currencies in Russia, Ukraine and Kazakhstan have been significantly weakened against the euro. As a result, the negative impact of exchange rate differences recorded by Selena amounted to approximately 10 million zloty.

In 2013, Selena adopted a strategy for the period 2014-2016. It defines the new mission of the group and clearly outlines activities and programs for the coming years. New mission: Together we are building faster and better. Together we deliver better building performance – means even better identification of customer needs and provision of products tailored to global trends and expectations of users in specific areas of construction, finishing and repair.