Selena Group has summarized its financial performance for 2021. The global producer and distributor of construction chemicals closed the year […]
Selena Group has summarized its financial performance for 2021. The global producer and distributor of construction chemicals closed the year with net profit of PLN 102.7 million, the best result in the history of its operations. Despite the unstable raw material market and supply chain disruptions, the company cemented its market position and generated a robust set of results with sales revenues of PLN 1.73 billion, which is an increase of 24.8% YoY. Selena Group’s operating profit (EBIT) was PLN 92.7 million.
In 2021, Selena Group shored up its position in the existing markets, and strengthened and diversified its supply chains. The key factors undermining stability of the market situation included the significant price volatility and limited availability of raw materials, as well as the still continued pandemic-related restrictions, notably during the first months of the year. With a flexible approach and strategy adapted to individual markets, Selena Group was updating its price lists on an ongoing basis. However, the major increase in costs caused a decline in the gross profit margin, which stood at 27.8% at the year-end, down 6.0 p.p. year-on-year.
“The strong results for the past year confirm the effectiveness of our flexible operating strategy in individual markets. We faced many challenges including uncertainty about how the pandemic would unfold, and the unprecedented instability of raw material prices and supplies in global markets. To mitigate the situation, we decided to expand and diversify supply chains and increase the working capital,” says Jacek Michalak, CEO of Selena Group, and emphasizes that 2021 was very well used to lay foundations for further growth and planned business expansion.
The robust financial performance also allows the company to be active in the equity market. In 2021, Selena Group decided to buy back own shares – 1.2 million shares in total – with a transaction value of more than PLN 28.7 million. The company also intends to continue its M&A plans, which have so far been put on hold. To this end, Selena Group has allocated a budget of EUR 100 million.
“We are looking for investment opportunities in the market. Due to the lack of availability of interesting projects that would meet our requirements, we decided to use part of the capital to purchase own shares. Our investment budget remains stable, and we believe that the use of capital to buy back our own shares is a very good investment. In our opinion, the value of our shares remains underestimated, so we decided to leverage the existing opportunities,” says Jacek Michalak, and adds that despite those headwinds, the implementation of the Group’s strategy was substantially on track.
The company also seeks opportunities for growth and stabilization by developing new areas of operations. The Group is going to balance the growing raw material prices by e.g. developing new formulations and marketing innovative products. The Group also established a new sustainability department, whose role is to deliver products for climate-neutral construction, while applying the highest standards of sustainable corporate development.
“Selena places a sharp focus on sustainable construction. We develop products that are environmentally friendly and increase the energy efficiency of buildings. And at the same time, we established in our organizational structure a department responsible for sustainable development. This is a strategic area for us, and we’ll be investing in it in the following years. As an example of this ambition, in April 2022, we launched a new production line for plant-based bioplastics, which is an outcome of the Biomotive project,” adds Roman Dziuba, Chief Operating Officer at Selena Group. The Group is also an active member of the Polish Green Building Council (PLGBC), which champions sustainable construction.
Major organizational changes in Selena Group were also reflected in the HR area. Following a decision of the supervisory board, for the first time in Selena’s history, an HR expert joined the Group’s management board. This is related to the implementation of the company’s strategic goals by building a competitive edge in human resources, with a particular emphasis on attracting talent, increasing engagement, and people development.
“The past year was important for Selena in terms of building foundations and values for our continued growth. We’ve invested heavily in human capital, reinforcing staffing at all levels, as we believe that our employees are the driving force behind the company’s growth,” said Andrzej Zygadło, Chief HR Officer at Selena Group.
Currently the Group comprises 34 companies in 19 countries. Selena’s manufacturing plants are located in Poland, South Korea, China, Romania, Turkey, Kazakhstan, Spain, and Italy.