CAPITAL DATA
| Equity | 394 990 | PLN ‘000 |
| Long-term liabilities | 210 520 | PLN ‘000 |
| Short-term liabilities | 179 787 | PLN ‘000 |
| ROA indicator | 8.6 | % |
| ROE indicator | 19.5 | % |
Value creation model and capital
Value creation model of the Śnieżka Group
- We build shareholder value and regularly pay dividends. We are rated as one of the leaders in communication with the market environment.
- We modernize, automate, digitize and optimize production and logistics processes within the Group, increasing flexibility and efficiency.
- We are a valued employer providing equal pay and development conditions. We promote safety and health concern.
- We incorporate the ESG approach into the Strategy and all aspects of the Group’soperations, aswell as we monitor and limit the impact of our activities and products on the environment.
- We develop based on knowledge. At the heart of our business model competencies in product development and brand management can befound.
- We are a reliable, valuable partner – both for our suppliers and local communities with whom we grow and strengthen.
Financial capital
Financial capital is understood as internal and external sources of financing operational activities and investments.
It consists of the financial results generated, share capital entrusted by owners, financing from lenders and bondholders and other long- and short-term liabilities.
CAPITAL MANAGEMENT
| Funding sources | The market position and performance of the Śnieżka Group allow it to maintain constant access to verified sources of financing (including several providers of long-term loans) and guarantee a favourable negotiating position. The Group has unique experience in obtaining financing related to ESG goals (SLL– Sustainability-Linked Loan). |
| Investment and development expenditure | After finalizing a significant investment programme, which was implemented between 2018 and 2022, the Company decided to return to the previously used approach, according to which the level of capital expenditure (CAPEX) is balanced with the level of depreciation. This approach allows for, inter alia, investing in technologies that counteract the so-called technological debt. Capital expenditure in the Group is divided into development expenditure (intended for company development, such as increasing production capacity or investing in innovations) and maintenance expenditure (expenditure related to maintaining existing assets in good technical and operational condition). Within the Group, the main areas of allocating the capital expenditure include fixed assets and operating activities. |
| Investor relations (IR) | Taking care of transparency and relationships with its stakeholders, the parent company, being a stock corporation, conducts active operations in the area of investor relations. It regularly organizes meetings, chats and videoconferences for capital market participants, and takes advantage of the corporate website to circulate information and materials. |
| Dividend payment | FFiL Śnieżka SA has been sharing its profits with shareholders continuously since 2003, which distinguishes it from companies listed on the WSE. The total value of dividends paid since 2003 is PLN 544.2 million. The Company’s shares are included in WIGdiv dividend index. |
CAPITAL RESULTS
| I. Net revenues from sales of products, goods and materials | 798 440 | PLN ‘000 |
| Profit from operating activities (EBIT) | 105 232 | PLN ‘000 |
| EBITDA | 142 836 | PLN ‘000 |
| Net cash flows from operating activities | 118 471 | PLN ‘000 |
| Net cash flow from operating activities less capital expenditures | 81 447 | PLN ‘000 |
| Number of group meetings with investors in 2024 | 4 | |
| Dividend paid in 2024 to the shareholders of the parent company | 39 998 | PLN ‘000 |
| The value of dividend paid since the debut on the WSE | 544 221 | PLN ‘000 |
Production capital
Production capital consists primarily of assets located in 4 countries, thanks to which the Śnieżka Group reaches customers in several markets. The potential of the plants is strengthened by logistics assets, including the Logistics Centre in Zawada near Dębica, launched in 2022.
CAPITAL DATA
| Number of production facilities in Poland | 4 | Lubzina, Brzeźnica, Pustków, Radom |
| Number of production facilities in Hungary | 1 | Bócsa |
| Number of production facilities in Ukraine | 1 | Jaworów |
| Number of production facilities in Belarus | 1 | Żodino k. Mińska |
| Śnieżka Group Logistics Centre | 44 500 m2 | Zawada |
| Value of the investment programme 2018-2022 | PLN 580 mln | Including PLN 270 mln in the Logistics Centre |
CAPITAL MANAGEMENT
| Robotization | Robotization applies to most activities that are burdensome or cause a decrease in efficiency. This translates into a significant reduction in employee workload and improved efficiency. This includes the process of preparing pallets for shipment and the use of autonomous forklifts. An important project in this category in 2024 was the investment in the plant in Lubzina: modernization of the existing bottling line and launch of the third line, as well as automation of the depalletization process and collection of finished pallets. The Group strives to equalize the level of robotization at the level of all production facilities, including those located outside Poland. |
| Management of the production and warehouse logistics process | Owing to the construction of the Logistics Centre in Zawada, it was possible to permanently transform the distribution model and flatten the production level within a year. Consequently, the impact of seasonality on the Group’s operations was significantly reduced and the needs for employment levels were stabilized. The new Logistics Centre also contributed to notable optimization in the management of supply chain processes. Combined with significant investments in automation and robotization, it has become possible to manage production capacity and inventories in real time. It is possible to package up to 2,000 pallets per day. |
| Digitization | Since 2022, the Group has been benefiting from the digitization project estimated by the supplier then as the largest in the Central and Eastern Europe region. The implementation has radically changed the manner of managing the entire undertaking. The areas covered by digitization include: human resources management, finance, sales, marketing and supply chain management. In the last of the indicated areas, the flow of data between warehouse and production assets, in particular in terms of the availability of raw materials, has become crucial for order fulfilment. Integration with the systems of most logistics operators cooperating with the Group has also been carried out. |
| Automation | Automation allows for increasing the accuracy of recipe reproduction and repeatability of processes, which contributes to the quality of products. |
CAPITAL RESULTS
| Production level | >130 mln kg | of decorative and construction products per year |
| A wide range of products | ~5 000 SKU | stock keeping unit – unique stock item |
| Market position | Śnieżka belongs to TOP3, the largest manufacturers of paints and varnishes in Poland in the segment of decorative products. It is one of the largest players of decorative paints in Hungary, as well as one of the leaders in the manufacture of construction chemicals and white paints in Ukraine. According to the ranking of the “European Coatings” magazine, the Śnieżka Group belongs to one of the 25 largest producers of paints and varnishes in Europe. In the ranking, Śnieżka is the only company from Central and Eastern Europe. In turn, in “The 2024 Top Companies Report” prepared by “Coatings World”, the Śnieżka Group was classified as the 55th largest producer of paints and varnishes in the world and the only one representing Poland. |
Human capital
Employees are the strength of the Śnieżka Group, and thanks to their commitment and creativity it is possible to build a strong market position and implement new solutions. Śnieżka’s priority is to build a safety culture and provide employees with conditions for continuous development.
CAPITAL DATA
| Number of employees | >1 100 | An international team located in countries where the Group has production assets |
| Employees with an employment contract for an indefinite period | 90.65 % | (data for the Group) |
| Percentage of employees participating in upskill training | 97 % | (data for the Group) |
| Planned budget for benefits for 2025 | 1 933 PLN ‘000 | (data for Śnieżka SA and ToC) |
| Number of issues of the printed internal magazine “In Colour” in 2024 | 5 pcs. | 57 since the beginning of the magazine’s launch in 2006 (data for Śnieżka SA and ToC) |
| Number of newsletters addressed to employees in 2024 | 86 pcs. | (data for Śnieżka SA and ToC) |
CAPITAL MANAGEMENT
| Professional development – culture of continuous feedback | In recent years, defining monthly, quarterly and annual goals and regular conversations between superiors and employees to summarize the achievement of these goals have been a tool supporting the professional development of the team and the culture of continuous feedback. In 2024, these activities were continued by introducing status meetings (so-called board meetings) and a tool for assessing managerial competences for Śnieżka SA and Śnieżka ToC companies. Thanks to these initiatives, regular feedback, setting development goals and improving managerial competences support open communication, systematic development and shaping of organizational culture. |
| Transparent remuneration system | The evaluation of job positions by the Evaluation Committee is one of the key tools for determining the value of individual positions for the undertaking and is an element of building a remuneration system. In 2024, the Committee reviewed the valuation of all filled positions in FFiL Śnieżka SA and Śnieżka ToC, and in Śnieżka-Ukraina and Poli-Farbe, the position mapping process is carried out on a regular basis. The Group systematically monitors the level of remuneration in relation to the market and analyses the pay gap, ensuring transparency, equality and competitiveness of the remuneration offered. |
| Employer branding and communication with employees | Dialogue with employees is conducted on many levels. Employees of key companies: Śnieżka SA, Śnieżka ToC, Poli-Farbe and Śnieżka-Ukraina regularly received newsletters and the printed magazine In Colour. For strategic topics, a precisely planned information cascade was implemented, in which team directors and managers play a key role. Additionally, employees engage in dialogue through representatives elected for a term of office (representing employees of the Companies Śnieżka SA, Śnieżka ToC, Poli-Farbe and Śnieżka-Ukraina in contacts with the Management Board). In 2024, elections of representatives for a new term of office were held in FFiL Śnieżka SA and ToC. |
| Onboarding and adaptation process | Onboarding and adaptation at FFiL Śnieżka SA and Śnieżka ToC cover the first months of work. The aim of these processes is to effectively introduce a new team member to the principles of the company’s operation and to equip them with the tools necessary for a given position, as well as to enable them to quickly acclimatize to the team and the organisation. This process aims to ensure a smooth start, understand the organizational culture and support in achieving initial successes in a new role. |
| Development of employee competences | All employees can benefit from training and development initiatives implemented within the undertaking, regardless of age or gender. The main criteria for their availability are the needs and business capabilities of the undertaking, the need to have specific knowledge, skills or competences, and the employee’s development needs diagnosed in the assessment process, which are consistent with the scope of their position. In 2024, dedicated development programs were introduced, such as the Effective Manager Programme, aimed at developing managerial competences. The tool supporting the implementation of training and management of the development process is the internal iWiem platform, which provides access to educational resources including mandatory, product and development training. |
| Sharing knowledge | There is a programme of internal trainers Śnieżka Academy run in FFiL Śnieżka SA and Śnieżka ToC. In the second edition of it, 10 training topics were carried out, which were divided into 4 thematic blocks: business, business tools, communication and health promotion. 12 trainers were selected to conduct the training, ensuring its high quality and accommodation to the needs of the participants and the undertaking. |
| Digital transformation of the HR area | In recent years, digitalised solutions have been introduced in the HR and payroll area, which have had a direct impact on improving the efficiency of processes related to working time management, absence recording and the calculation and payment of remuneration. Additionally, in 2024, a tool supporting time management and work efficiency in remote mode was put in place. |
| Employee satisfaction survey | A positive result in the eNPS survey of Capital Group employees is one of the non-financial objectives defined in the business strategy of the Śnieżka Group. In 2024, another edition of the eNPS survey was conducted at Śnieżka SA and Śnieżka ToC, and measurements were initiated at the following companies: Poli-Farbe, Śnieżka-Ukraina and Rafil. In 2024, another edition of the eNPS survey was conducted at Śnieżka SA and Śnieżka ToC, and measurements were initiated at the following companies: Poli-Farbe, Śnieżka-Ukraina and Rafil. Important factors of the declared willingness to recommend Śnieżka as an employer are: benefits offered, atmosphere in the company, relationship with the supervisor and the company’s prospects/stability. Employees also indicate the following reasons for recommending: the possibility of good work-life balance, the opportunity of development and training. |
| Benefits | The Group offers its employees a wide range of non-wage benefits, including: insurance, co-financing for selected benefits and development programmes. The Group also takes care of team integration by organising team and company-wide events, such as thematic meetings, the Family Picnic and initiatives for employees’ children. |
| Health prevention | As many as 322 employees (from administrative and warehouse areas) took part in the continuation of First Aid training in 2024. The plants have also been equipped with defibrillators. In 2024, additional preventive examinations for Employees 50+ (blood count, CRP, tumor markers) were carried out for the first time, with 160 employees participating. Also, the “Śnieżka paints the world pink” campaign is held on an annual basis, in which female employees and wives/partners of employees are encouraged to undergo breast cancer prevention tests financed by the Group. During the last campaign, 172 patients were examined. In addition, team members are offered an extended package of periodic tests. |
CAPITAL RESULTS
| ENPS indicator level (recommendation indicator) within the Group | 10 | With a turnout of 92.85% |
| Number of training hours (Śnieżka SA and Śnieżka ToC) | 22 339 h | Number of training hours per employee: 29.95 (Śnieżka SA and Śnieżka ToC) Data for the Group: 25.22 |
| Number of training hours (The Group) | 28 855 h | |
| Adjusted pay gap (Śnieżka SA and Śnieżka ToC) | 3.27 % | Data for Śnieżka SA and Śnieżka ToC |
| Adjusted pay gap (the Group) | 6.90 % | Data for the Group |
Natural capital
The Śnieżka Group systematically and responsibly manages the impact of its activities on the natural environment, as well as the health and safety of product users. It develops the organization’s carbon footprint management, implements a number of optimization and reduction initiatives (water, energy) and as part of purchasing processes, analyzes suppliers’ activities in terms of meeting ESG criteria.
CAPITAL DATA
| Water consumption | 52 083 m3 |
| Electricity consumption | 9 159 MWh |
| Gas consumption (heating) | 520 184 m3 |
CAPITAL MANAGEMENT
| Carbon footprint counting and reduction targets | The Śnieżka Group calculates the carbon footprint in the scope of 1, 2 and 3. For FFiL Śnieżka SA and Śnieżka ToC, a target has been set to reduce greenhouse gas emissions in Scope 1 and Scope 2 (in total) by 45% in 2023 and 50% by 2025 compared to the 2020 level (according to the market-based method). The process of calculating and developing reduction assumptions will cover all Group companies in the future. |
| Green energy | All electricity purchased by FFiL Śnieżka SA, Śnieżka ToC and Rafil in 2024 came from renewable energy sources, which is confirmed by guarantees of origin and documents confirming their redemption issued by the Polish Power Exchange. At the same time, photovoltaic systems were installed in the Group’s companies in Hungary and Ukraine, which have been producing “green” energy since 2024. |
| Saving projects | In 2024, the gas boiler in the plaster production facility in Pustków was replaced with a new one, featuring a higher efficiency class. The lighting was also replaced with LEDs, which will help reduce electricity consumption. Actions to increase energy efficiency also include optimizing production processes, such as shortening the dispersion process. |
| Risk assessment of the substances used | At the product design stage, operational conditions and risks are assessed, which allows for proper control of threats to human health and the environment. The analysis covers the entire life cycle of the substance, including its formulation, industrial and professional end use, consumer use and use in products. |
| Product certification management | In 2024, the Śnieżka Group expanded its offer of eco-friendly and allergy-free certified products. |
CAPITAL RESULTS
| Total greenhouse gas emissions: Scope of 1, 2 and 3 (market-based method) | 138 458 t CO2e |
| Total greenhouse gas emissions: Scope of 1, 2 and 3 (location-based method) | 142 108 t CO2e |
| % of recycled plastic packaging by weight | >5 % |
| Share in the sale of eco-friendly and allergy-free certified products | 46.2 % |
| Share in the sale of water-based products | 82.5 % |
Intellectual capital
The central element of the Group’s business model is not production assets, but competences focused on developing products, managing strong brands and organizing digitally supported processes within the Group, enabling us to always be close to our customers. Intellectual capital consists of recipes and technologies, information management processes built as part of the Change IT project – including feedback from partners and customers – as well as a knowledge management system.
CAPITAL DATA
| Strong, key brands | 6 | Śnieżka, Magnat, Poli-Farbe, Vidaron, Rafil, Foveo-Tech |
| Own Research & Development Centre | 1 | Research and development activities of all companies of the Śnieżka Group are carried out in the Research and Development Centre (R&D). This unit consists of the Research and Development Department and the Quality and Climate Assurance Department. |
CAPITAL MANAGEMENT
| Management of brands and related products | The owner of the commercial brands of the Śnieżka Group is Śnieżka Trade of Colours Sp. z o.o. (with the exception of brands belonging to Poli-Farbe Vegyipari Kft.) The company features competences such as: shaping the pricing policy, market analysis and consumer behaviour and introducing changes to the portfolio through product life cycle management. The product development process is always assigned to a specific brand and involves close cooperation between the marketing team, the Research and Development Centre and the team responsible for production. The process takes into account the specificity of individual markets and is built on internal resources, including the market research team. |
| Recipe and production technology management | The essence of the work of the Research and Development Centre (R&D) is to develop recipes and implement new products and technological solutions, which contribute to high quality of manufactured products and their safety for customers and the environment. Thanks to the developed and acquired technologies and automation of production processes, not only is efficiency increased, but it is also possible to reduce the amount of production waste as well as water and energy consumption. Our own research laboratories (including microbiological and chromatographic ones) enable specialized testing of raw materials, recipes and products. |
| Digitization of processes | The Group implemented one of the largest – in terms of scale – digitization process in the region of Central and Eastern Europe. It has streamlined many business processes in all areas of Śnieżka’s operations and is being developed as part of current initiatives and business needs. Its direct effects are the ability to manage knowledge about customers, their satisfaction and preferences – which translates into the product creation process. This allows processes to be streamlined and efficiency to be increased. |
CAPITAL RESULTS
| High awareness rates of the Śnieżka, Magnat, Vidaron brands | In the top 5 in its category |
| Number of recipes available in the mixer | >150 000 |
| Annual capital expenditure and operating expenses related to IT (without depreciation) | PLN 14.9 mln |
(Relational) social capital
In the Group’s business model, relationships are of key importance. Distribution channels are built through them. A stable supply chain requires mature dialogue with entities guaranteeing continuity of production. The Snieżka’s strength as an attractive employer stems from its relations with the social environment, especially on a regional scale.
CAPITAL DATA
| Minimum budget for social activities (2-year cycle) | 1.0 | % of gross profit of Śnieżka SA |
| Śnieżka SA expenditures on social activities (2024) | 653.4 | PLN ‘000 |
| Value of the Śnieżka’s Foundation World in Colours project (2024 r.) | 143.0 | PLN ‘000 |
| Value of the Śnieżka’s Foundation “Przeogarniacze” project (in one edition) | 52 | PLN ‘000 |
| Percentage of suppliers informed about the Supplier’s Code of Conduct. | 100 | % |
CAPITAL MANAGEMENT
| “Koloratorium” | A nationwide social project for primary schools in towns with a population of up to 20k residents. The aim of the initiative is to popularise chemistry among students of grades 4-8 – a field in which Śnieżka specializes as a paint manufacturer. |
| “Przeogarniacze” | A project addressed to fourth grade primary school students. During five 90-minute workshops, issues related to economics, entrepreneurship and pro-social and pro-environmental activities are presented. |
| “World in Colours” | A comprehensive renovation programme of hospital wards, which translates into improved treatment conditions for patients and the comfort of work of medical staff. |
| Supplier relations | The Group’s objective is to liaise with business partners who, similarly to Śnieżka, develop in a sustainable manner. In order to be abele to cooperate with the Śnieżka Group, each supplier is required to confirm the knowledge and compliance with the rules of the code of conduct, which are attached in a form of a document to each new agreement with suppliers. Suppliers are required to sign the acknowledgment of the Śnieżka Group’s Supplier’s Code of Conduct, thus declaring their readiness to undertake ethical business activities. |
| Dialogue with the environment | We carry out systematic activities to build lasting and transparent relationships with stakeholders, diversifying channels of access and the scope of information to meet their needs, and developing innovative tools. |
| Membership in external organizations | The Group participates in organizations and associations supporting business development and the transformation of enterprises in the field of sustainable development. On the Polish market they are: Polish Association of Paint and Adhesive Producers, Polish Plastic Pact, Polish ESG Association; on the Hungarian market: MAFEOSZ – National Association of Hungarian Paint Manufacturers; on the Ukrainian market: International Association of Polish Entrepreneurs in Ukraine, taxpayers Association of Ukraine and Lviv Chamber of Commerce and Industry. |
CAPITAL RESULTS
| Number of laboratories funded under the Koloratorium project in 2018-2022 | 34 | In previous editions, Śnieżka funded 34 studios with a total value of PLN 590 thousand. |
| Hospital wards renovated as part of the World in Colours Programme in 2005-2024 | 36 | Including renovation of one hospital ward in 2024 with a total value of PLN 143 thousand. The project implemented by the Śnieżka Foundation. |
| Number of students covered by the Przeogarniacze project in 2016-2024 | 2 379 | 2,379 students from 130 project groups from 41 primary schools in the Dębica and Ropczyce and Sędziszów counties, which accounts for 1,300 teaching hours and over 1,040 hours of outdoor education during classes carried out during educational trips. |
| Percentage of active suppliers who have signed the Supplier’s Code of Conduct | 67 % | |
| Percentage of strategic and key suppliers who have completed the self-assessment survey | 57 % |