Financial standing

The level of the Group’s balance sheet values is influenced by the phenomenon of seasonality related to the volatile intensity of renovation and construction works in particular periods of the year (described in more detail in item 7.6 of the Report).

The Śnieżka Group’s assets

As at 31 December 2024, the value of assets of the Śnieżka Group amounted to PLN 785,297 thousand, which accounts for a decrease by 4.1% (by PLN 33,489 thousand y/y) compared to the end of December 2023.

The value of the Group’s fixed assets (representing 69.9% of its total assets) decreased by 2.6% over the year to PLN 549,190 thousand. The value of the Group’s current assets reached PLN 235,273 thousand, which represents a decrease by -7.6% compared to December 31, 2023. The main part of the Group’s current assets were inventories valued at PLN 100,345 thousand. Their value compared to the end of the previous year decreased by a total of 13.6%. The second largest item was trade receivables and other receivables worth PLN 65,463 thousand, i.e. by 11.4% higher than the year before. In addition, as at December 31, 2024, the Group held PLN 55,623 thousand cash (a decrease by -15.3% y/y).

The Śnieżka Group’s liabilities

As at 31 December 2024, the Group had equity in the amount of PLN 394,990 thousand, i.e. higher by 5.6% than by the end of December 2023.  At the same time, its level of external debt decreased.  Consequently, the Group financed its operations from its own resources at 50.3%, which represents an increase of this ratio by 4.6% over the year.

At the end of the reporting period, the Group’s long-term liabilities amounted to PLN 210,520 thousand, which account for a 5.8% fall (PLN 13,025 thousand y/y). Liabilities due after twelve months from the balance sheet date accounted for 26.8% of the balance sheet total.

The Group’s short-term liabilities amounted to PLN 179,787 thousand, lower by 18.7% y/y and accounted for 22.9% of the balance sheet total. Their decline is primarily due to the decrease in the level of trade and other liabilities and a reduction in the current portion of interest-bearing loans.

Compared to the end of December 2023, the Group’s trade and other liabilities decreased by 26.2% (a fall by PLN 26,560 thousand y/y).

Similarly as in the case of the Group, the level of balance sheet values of FFiL Śnieżka SA is affected by seasonality.

FFIL ŚNIEŻKA SA’s assets

As at 31 December 2024, the Company’s assets amounted to PLN 789,071 thousand, which accounts for a decrease by 5.2% (by PLN 43,596 thousand).

The value of the Company’s fixed assets (representing 82.0% of its total assets) decreased by 1.6% during the year to PLN 646,710 thousand.  The greatest contributor to this was the decline in other fixed assets by PLN 8,213 thousand (1.9% y/y).

The value of the Company’s current assets amounted to PLN 142,361 thousand, i.e. it was by 18.8% lower than on December 31, 2023.  The core assets were inventories, which were by 10.7% lower than in the previous year, valued at PLN 78,611 thousand.  The drop in inventories is partly the aftermath of the supply chain management optimization process., including: launching a logistics centre and investing in the digitization of the supply chain. The second largest current assets were trade and other receivables (PLN 50,346 thousand), which fell by 30.7% compared to the end of 2023.

At the end of December 2024, the Company had PLN 999 thousand cash and cash equivalents (an increase by 34.1% y/y) and PLN 12,405 thousand of other current assets in the form of income tax receivables.

FFIL ŚNIEŻKA SA’s liabilities

As at December 31, 2024, FFiL Śnieżka SA financed its activities in 36.9% from its own funds, which represents a surge of this ratio by 4.8% compared to 2023.  This is the result of a reducing the level of external financing.

At the end of the reporting period, the long-term liabilities of the Company amounted to PLN 390,759 thousand (a decrease by PLN 24,619 thousand y/y) and accounted for 49.5% of the balance sheet total.  The Company’s short-term liabilities, however, decreased by 28,6% (PLN 43,073 thousand). The leading impact on this balance sheet item was primarily due to the decline in the Company’s current credit and loan liabilities by PLN 27,960 thousand y/y (to PLN 47,457 thousand). As at the balance sheet date, the Company’s trade liabilities decreased by 19.0% (by PLN 12,049 thousand y/y).

As part of the liabilities presented in the report, the Company had loans from its subsidiaries – Śnieżka Trade of Colours sp. z o.o., Radomska Fabryka Farb i Lakierów SA, which is an element of optimal liquidity management within the Group.

As at 31 December 2024, the total value of the loans in question amounted to PLN 210,414 thousand, including (in PLN ‘000):