Selena Group – global producer and distributor of construction chemicals headquartered in Poland – in the third quarter of 2016 […]
Selena Group – global producer and distributor of construction chemicals headquartered in Poland – in the third quarter of 2016 posted consolidated sales of PLN 757m, which is similar to the corresponding period of 2015. At the same time, the Group’s operating profit (EBIT) was PLN 48.3m, up by approx. 10%, while net profit in the reporting period was PLN 36.6m, meaning a robust growth of nearly 76% year-on-year. This performance reflects Selena’s consistent strategy of improving profitability of its operations.
With its active commodity procurement policy, relentless work on product formulations and introduction of high-margin, innovative products, in Q3 2016, Selena Group maintained its gross profit margin high at 33.9%, up 2.4 pp year-on-year. In addition, the trading performance was helped by low commodity pricesduring the period and the positive FX differences of local currencies in Selena’s foreign markets in relation to the euro.
„The consistency is bringing high-quality, innovative products to the global market has borne fruit in the third quarter of 2016, when net profit growth increased by PLN 16 million on the corresponding period of the previous year. With our own products intensively developed by our own R&D units and as a result of cooperation with scientists, Selena keeps ahead of competition, creating new product categories and setting new standards in construction. This policy helps the company achieve higher sales in the demanding markets of highly-developed countries. In the third quarter, we also observed growth in such countries as Brazil, Turkey or the United States, where our profits have been consistently growing for the last three years. It should be noted that despite the unfavourable economic policy in the East, Selena Group’s companies in that region have been gradually recovering their sales potential. To maintain the net profit at a level comparable to that of 2015 was a major challenge, particularly in the context of the significant decline in construction output in the EU countries – especially in Poland – and in the Group’s key eastern markets. We have been observing a trend change in the commodities market and after a period of low prices continuing up to the third quarter of the year, the upcoming months should already see some growth. However, Selena i well-prepared for such developments, so the effect of growing raw material prices should not have any material impact on our margins until the end of 2016.” – said Marcin Macewicz, member of the Management Board of Selena FM SA, Selena Group’s parent company.
The key thing for Selena Group is to consistently implement its strategy to offer the best quality solutions that meet users’ real needs and in consequence to increase revenues and market share. The company has been steadily improving its profitability, not only by means of its operating activities, but also, or above all, thanks to its improved products with increasingly better formulations dedicated for users. From the very beginning, Selena Group – as the sector leader – has placed an emphasis on R&D, launching its proprietary technologies that oftentimes mark a breakthrough for the whole sector.