In 2014, the Selena Group reached a cumulative sales revenue of PLN 1.1 billion, which is at the level of the previous year. EBIT amounted to PLN 65.5 million, an increase of more than 15 million zloty year on year. The net income of PLN 21 million is comparable to the result achieved in 2013.
The situation in Selena’s key markets varied in 2014. Selena recorded a significant decline in sales in the large and important Russian market. This tendency has been further deepened by substantial falls in the exchange rate of ruble to euro. When it comes to other markets, in Poland, after a very strong performance of the first half of the year, the second half brought a weakening. On an annual basis, Selena recorded sales in Poland 2.5% higher than in 2013.
Satisfactory and stable sales growth was recorded by the company in the following markets: Turkish, Spanish and American: in Brazil and the USA. Like last year, in the region of Central Europe stagnation and decline in demand continued. Globally, despite highly adverse conditions, Selena recorded sales of PLN 1.1 billion, which means it maintained a level of sales comparable to 2013, despite highly adverse conditions.
In 2014, Selena continued its trend of improved operating results. Reported EBIT amounted to PLN 65.5 million, compared to PLN 50 million in the previous year. Sources of the improved results include, among others, an increase in the profitability of companies which were so far characterized by low productivity, offsetting sale losses in Russia on other markets, new efforts to increase the diversity of income sources and launches of innovative products to generate higher margins. Selena’s net profit amounted to nearly PLN 21 million, which is the level of the previous year. The most important factor in the formation of the net profit was the negative impact of exchange rates, with particularly severe negative impact on the Russian ruble and the Ukrainian hryvnia.
“The crisis in Eastern Europe, especially in the key Russian market, had a negative impact on the profitability of our business. In this situation, our success consists in the improvement of the operating result of the Group, effective geographical reorientation of sales and compensation for losses in Russia in other markets” says Jarosław Michniuk, CEO of Selena FM SA, the parent entity in Selena Group. “In the coming quarters, we will focus on the implementation of this strategy. Due to the crisis between Russia and Ukraine, the strategy has been partially updated, resulting in, among others, transfer of our operations to markets outside the influence of the Eastern crisis. We will continue to develop innovative products with particular emphasis on thermal insulation, dry mortars and waterproofing materials, and we will continue to strengthen our position in the world market of adhesives and sealants. We will also continue to implement a number of projects to improve operational efficiency in the production processes, purchasing, logistics and R&D.
Selena takes into consideration that the current economic situation in the Russian market will continue. Given the forecast of slight economic recovery in other markets, the Group will continue its efforts focused on operational improvement. In 2014, these efforts produced noticeable results, which was appreciated by the business community. For example, Selena was awarded the President’s Economic Award for Durable Success. The prize in this category was awarded for the first time.