Management Board of Selena presented financial results for 2017. During the meeting with investment funds representatives and analysts – which took place at 20th of April – the condition of the company as well as situation in individual markets were discussed. The meeting was also an occasion to present advanced technologies which are being developed in Group’s laboratories.
Selena Group was represented by:
Company’s detailed financial results in 2017 have been discussed by Vice President of the Management Board, Chief Financial Officer, Hubert Rozpędek. Company’s sales revenue amounted at PLN 1 178.7 million and profit to PLN 6.8 million – an increase by 0.6% compared to 2016. Global sales increase is the result of operations optimization, creating an advantage on international market through innovative and unique products and consistent development of distribution network.
The company increased sales on most key markets, including China (+ 98%), Turkey (+ 29%), Russia (+ 23%), Kazakhstan (+ 15%), Spain (+ 12%), Poland (+ 12%) and the US (+ 7%). Thanks to the diversification of sales markets and the optimization of processes and product formulas, Selena Group recorded an increase in sales at the level of PLN 1.18 billion (+ 16% y / y). Despite the very negative external factors - the situation on the commodity market - the Group achieved a higher margin weight than a year ago and recorded a result higher by PLN 26 million in comparison to the previous year on other operating activities. This is the effect of the programs introduced to organize the Group's operating activities and increase discipline in the field of trade credit policy. The result on financial activities had a significant impact on the net result, including the valuation of items expressed in foreign currencies. The negative balance due to exchange differences amounted to PLN 24.7 million, of which only 8% are realized exchange differences.
"The above-market increase in the Group's revenue - despite a slightly lower gross profitability - was achieved, among others, thanks to the diversification of sales markets and the proper implementation of sales. It is even more important that 2017 was marked by a crisis in the raw materials market. We dealt with an unprecedented and highest increase of commodity prices in 15 years. The possibility of negotiating the prices of raw materials was limited, and some of them, despite the previously contracted quantities, were unavailable. Selena managed to partially compensate for this situation by higher sales of high-margin products. The recorded increase in sales is also the effect of continuation of the implementation and sale of such key products for the Group as the FOAM ADHESIVES foam family (FOAD). This year, we invested in the expansion of the distribution network and focused on the integration of the Uniflex Italian company and a thriving Chinese joint venture with the Selena Group" - said Marcin Macewicz, p.o. President of the Management Board of Selena FM SA.