Selena: financial performance after three quarters of 2015

Selena Group – global producer and distributor of construction chemicals headquartered in Poland – after the third quarter of 2015 posted consolidated sales of PLN 759m. The net profit was PLN 20m, while the operating profit came in at PLN 43m.

Like in the previous quarters, Selena’s performance was mainly influenced by currency fluctuations and the political situation in some regions. The Group reported an increase in sales in the United States, Spain and Kazakhstan. The Eastern markets – Russia and Ukraine – continue to be difficult.

As expected, the company has been steadily improving its gross margin, which after the three quarters of the year was 31.5%, up 1.5 p.p. year-on-year. This is attributable to the consistent development of the product portfolio, notably the increasing contribution of innovative products to total sales, the Group’s procurement policy whereby it can achieve favourable commodity purchase prices as well as optimisation of product recipes.

“We are aware that due to our long-term presence in emerging markets we are highly exposed to market ups and downs and to fluctuations of local currencies. The continuing crisis in Eastern Europe and reduction of the purchasing power and investment demand in the construction sector in developing countries have caused our sales to decline. However, the lower sales were largely compensated for by improved margins. Our margins have increased on the back of our consistent efforts in the area of Research & Development and the sourcing of commodities” – said Jarosław Michniuk, the CEO of Selena FM SA, the parent company in Selena Group.

In the upcoming quarters the company expects to keep its gross margin high. At the same time, Selena looks to increase its activity and sales in the developed markets, expecting a relative stabilisation in the Eastern markets.