The sector remained influenced by the pronounced market slowdown in 2023 as it continued into the first quarter of 2024, caused by rising general inflation, high interest rates and borrowing costs, and dampened demand for construction chemicals. The measures taken by Selena’s management board in the second half of 2023, supported by a detailed analysis of activity in global markets, helped set the right action lines that were primarily designed to reduce the negative impact of market processes as much as possible. And that response translated into the increase in financial results in the first quarter of 2024. The gross profit margin growth reported at the 2023-end has continued since beginning of this year. Revenues from the sale increased to EUR\u00a092.6 million in Q1 2024, resulting in a strong gross profit margin that stood at 33.8% at the end of March. Steps were also continued to increase revenues in Western Europe, the key development market in the context of Selena\u2019s business goals. In the reporting period, sales in that market increased by 5.5%.<\/p>\n\n\n\n
Selena also maintained its marketing initiatives aimed at strengthening its brand, with a particular focus on its leading brand Tytan Professional\u00ae and its Spanish equivalent Quilosa Professional\u00ae, with a view to increasing their visibility and recognition among the relevant target group \u2013 building contractors.<\/p>\n\n\n\n
In Q1 2024, gross profit rose to EUR 31.3 million compared to EUR 25.4 million in the year-ago period.<\/p>\n\n\n\n
Selena\u2019s net profit in Q1 2024 came in at EUR 4.5 million. Operating profit increased to EUR 6.4 million from EUR 89 thousand in Q1 2023, when the performance of the entire industry was strongly affected by the weaker economic situation on the Polish and Western European markets, in particular lower demand and earlier stock-building.<\/p>\n\n\n\n
\u201cThe unfavorable marked we experienced in 2023 was also observed in the first quarter of this year. One of the main challenges facing the industry is the rising costs of raw materials and energy, which in turn may affect product costs and demand. We\u2019re carefully watching the market and flexibly responding to any developments. This market dynamics is directly reflected in our decisions. We diversify the products and markets in which we operate, focusing on solutions from the areas of thermal upgrades, waterproofing and innovative construction methods. Importantly, we\u2019re increasing our presence in other countries. We\u2019re broadening our areas of operations and scaling up our business not only in Poland, but also in Western Europe and both Americas. These development directions will be continued in 2024 and I strongly believe they will yield fruit<\/em>,\u201d says S\u0142awomir Majchrowski, CEO of Selena Group.<\/p>\n\n\n\n The presented financial results for Q1 2024 are a testament to Selena Group\u2019s good health. Operating profit (EBIT) was EUR 6.4 million, and EBITDA margin increased to 9.5%. The goals and directions set will be maintained in the following months alongside continuation of the commenced initiatives, especially as the market environment remains highly challenging.<\/p>\n\n\n\t\t![\"S\u0142awomir](\"https:\/\/selena.com\/wp-content\/uploads\/2023\/08\/Slawomir-Majhrowski-CEO-08_2023-1024x682.jpg\")
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