Financial ratios

The Śnieżka Group

Group’s profitability ratios

In 2024, the Śnieżka Group generated lower margins than in the previous year at all profit levels, i.e.: net (a decrease by 0.7%, to 9.0%), EBIT (a decrease by 0.9%, to 13.2 %) and EBITDA (a decrease by 0.7%, up to 17.9%). In turn, the gross margin on sales was higher (an increase by 4.5%, to 49.3%) – this was primarily the result of a significant decline in the cost of sales (14.5% y/y), in relation to a much slower decline in sales themselves, at (6.9% y/y).

In the reporting period, ROA was also lower (as a result of a 1% increase in the average level of assets, with a simultaneous 13.6% decrease in net profit), as was ROE (mainly due to lower net profit and a higher periodically averaged value of equity).

The Group’s profitability ratios

 

the period of 12 months ended as at 31 December 2024 the period of 12 months ended as at 31 December 2023
EBIT margin in % (EBIT / Sales revenues) x 100% 13.2% 14.1%
EBITDA margin in % (EBITDA / Sales revenues) x 100% 17.9% 18.6%
Gross margin on sales in % (Gross profit on sales / Sales revenues) x 100% 49.3% 44.8%
Net profit (loss) in % (Net profit / Sales revenues) x 100% 9.0% 9.7%
Return on assets (ROA) * (Net profit / Total assets *) x 100% 8.6% 10.1%
Return on equity (ROE) ** (Net profit / equity – attributable to the shareholders of the parent company) x 100% 19.5% 24.0%
* Total net profit of the Group for the last four quarters divided by the average value of total assets of the Group at the end of the last 5 quarters.
** Total net profit attributable to the shareholders of the parent company for the last 4 quarters divided by the average value of equity attributable to shareholders of the parent company at the end of the last 5 quarters.
Group’s liquidity and debt ratios

As at December 31, 2024, the total debt of the Group decreased by 4.6% (to 49.7%), which results from a significant decrease in liabilities and a slight decrease in assets.

An increase in the Equity-Asset-ratio with equity by 5.6% results from the increase in the value of equity capital in the face of a slight decrease in the value of fixed assets.

Compared to the previous year, the Group’s liquidity ratios improved.  The leading current liquidity ratio increased from 1.2 to 1.3 – mainly due to a more dynamic decline in liabilities, compared to the decline in current assets.

The Śnieżka Group manages its interest debt in a safe manner, assuming the optimal debt level of 1x EBITDA.

At the end of 2024, the Group’s net debt/EBITDA ratio was 1.45 compared to 1.38 a year earlier.

In 2024, the Group limited investment expenditure to the level necessary for effective operating activities (the investments are described in more detail in item 7.7 of the Report).

The Group’s liquidity and debt ratios

 

31.12.2024 31.12.2023
Current liquidity ratio (Current assets / Short-term liabilities) 1.2 1.2
Quick liquidity ratio (Current assets – inventories)/Short-term liabilities 0.7 0.6
Cash liquidity ratio (Cash and cash equivalents / Short-term liabilities) 0.31 0.30
Total debt ratio (Total liabilities / Total assets) x 100% 49.8% 54.3%
Fixed-asset to equity-capital ratio (Equity/Fixed assets) x 100% 71.8% 66.3%
Group’s rotation ratios

In 2024, the Group’s cash conversion cycle increased by almost 16 days. The liability cycle was shortened (by 10 days), while the receivables turnover increased (by 5 days) and the inventory cycle was minimally extended (by 1 day).

The Śnieżka Group’s rotation ratios

 

the period of 12 months ended as at 31 December 2024 the period of 12 months ended as at 31 December 2023
Inventory cycle (Inventory level x 360 /Cost of sales) in days 89.3 88.3
Receivables cycle (Trade and other receivables x 360 / Sales revenues) in days 29.5 24.7
Current liabilities cycle (Trade and other liabilities x 360 / Cost of sales) in days 66.6 77.1
Cash conversion cycle (Inventory cycle + receivable cycle – liability cycle) in days 52.2 35.9

FFIL ŚNIEŻKA SA

In 2024, FFiL Śnieżka SA generated worse margins than the previous year at the level of: operating profit EBIT (by 1.6%), EBITDA (by 1.0%), while the net profit margin remained at the previous year’s level.

In the reporting period gross margin increased by 1.3% to 32.3%. This is a result of the faster pace of decline in costs of sales (9.9% y/y), compared to the dynamics of the downward change in sales themselves (8.3% y/y).

In the current model, the profits from the sale of products generated by Śnieżka ToC (which is responsible for marketing and sales activities in the Group) are transferred to FFiL Śnieżka SA in the form of dividends. The Company, as year before, also received a dividend from the Hungarian company. In the reporting period, the total income of the Company from dividends amounted to PLN 45 343 thousand.

FFIL ŚNIEŻKA SA’s profitability ratios

 

the period of 12 months ended as at 31 December
2024		 the period of 12 months ended as at 31 December 2023
EBIT margin in % (EBIT / Sales revenues) x 100% 18.1%  19.7%
EBITDA margin in % (EBITDA / Sales revenues) x 100% 23.1% 24.1%
Gross margin on sales in % (Gross profit on sales / Sales revenues) x 100% 32.3%  31.0%
Net profit (loss) in % (Net profit / Sales revenues) x 100% 12.2% 12.2%
Return on assets (ROA) * (Net profit / Total assets *) x 100% 7.5% 8.1%
Return on equity (ROE) (Net profit / equity**) x 100% 22.6%  28.2%
* Total net profit of the Group for the last four quarters divided by the average value of total assets of the Group at the end of the last 5 quarters.
** Total net profit attributable to the shareholders of the parent company for the last 4 quarters divided by the average value of equity attributable to shareholders of the parent company at the end of the last 5 quarters.

Company’s liquidity and debt ratios

At the end of 2024, the overall debt of the Company decreased by 4.8% to 63,1%.  Fixed-asset to equity-capital ratio increased by 4.4%, which is a result of the increase in the level of equity. Compared to the previous year, the Company’s current liquidity ratios improved (1.3 compared to 1.2 last year). This is primarily the result of a decrease in short-term liabilities.

The FFIL ŚNIEŻKA SA’s liquidity and debt ratios

 

31.12.2024 31.12.2023
Current liquidity ratio (Current assets / Short-term liabilities) 1.3 1.2
Quick liquidity ratio (Current assets – inventories)/Short-term liabilities 0.6 0.6
Cash liquidity ratio (Cash and cash equivalents / Short-term liabilities) 0.01 0.00
Total debt ratio (Total liabilities / Total assets) x 100% 63.1% 68.0%
Fixed-asset to equity-capital ratio (Equity/Fixed assets) x 100% 45.0% 40.6%

Rotation ratios

In 2024, the Company’s cash conversion cycle was 62.4 days, which is over 6 days shorter than in the previous year; this is a result of a shorter payables cycle (by approximately 5.8 days), improved inventory turnover (by 0.7 days) and a shorter receivables cycle (by approximately 11.2 days). Since the change of the Group’s operating model, a significant part of the receivables of FFiL Śnieżka SA comes from Śnieżka ToC, which is related to the takeover of commercial contracts by it.

FFIL ŚNIEŻKA SA’s rotation ratios

 

the period of 12 months ended as at 31 December 2024 the period of 12 months ended as at 31 December 2023
Inventory cycle (Inventory level x 360 /Cost of sales) in days 80.1 80.8
Receivables cycle (Trade and other receivables x 360 / Sales revenues) in days 34.7 46.0
Current liabilities cycle (Trade and other liabilities x 360 / Cost of sales) in days 52.4 58.2
Cash conversion cycle (Inventory cycle + receivable cycle – liability cycle) in days 62.4 68.5
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