Sales volumes

In 2024, the Śnieżka Group generated sales revenues of PLN 798,440 thousand, i.e. 6.9% lower than in 2023, recording sales declines in all key markets. The Polish market was the least affected i.e. 2.4%.

The Hungarian and Ukrainian markets recorded declines in revenues in the Group’s currency by 19.8% and 8.9%, respectively. It is worth noting that in local currency the company operating in Ukraine recorded a 5.2% increase in revenues, and the weak result in the Group’s currency is the aftermath of the weakening of the local currency.

The Group’s performance in 2024 was also significantly affected by the unstable geopolitical environment, including the pending armed conflict in Ukraine and its effects on the entire region of Central and Eastern Europe, where the Group’s key markets are located. Additionally, high interest rates and consumers’ greater propensity to save limited demand dynamics. The above factors had a significant impact on the Group’s financial bottom line last year. Despite the gradually increasing purchasing power of consumers in 2024, the economic situation of the industry in which the Group operates remains weak.

In 2024, the demand in the industry was influenced by the trend of consumers buying higher quality products, observed mainly in Poland. Despite the difficult economic environment, in 2024 the Group increased its share in the Polish market, which dominates the Group’s revenues, and in the Ukrainian market.

The sales volumes in the period January-December 2024 on the main markets (and the most important factors that contributed to them) are as follows:

(72.2% share in the revenue structure, +3.3% y/y)

Sales revenues generated by the Group on the Polish market amounted to PLN 576,814 thousand and thus were lower by 2,4% (PLN 14,276 thousand) compared to the previous year.

According to the Group’s own data, this performance is better than the performance of the entire decorative products market (home decoration items), which allowed the Group to increase its market share in Poland.

The decline in sales volume in 2024 in Poland resulted primarily from the changes in the distribution model on the independent market (this effect was mainly visible in Q1 of 2024) as well as the weaker economic situation in the industry in the reporting period.

(12.9% share in the revenue structure, -2.0% y/y)

In Hungary, the Group’s sales revenues amounted to PLN 102,807 thousand and were by 19.8% (i.e. by PLN 25,346 thousand) lower than in 2023. Around half of this decline is followed by the weakening of the HUF currency. Lower revenues on the Hungarian market are the result of persistent unfavourable macroeconomic and geopolitical conditions affecting consumer sentiment and the economic situation in the industry, in which the Group operates. The decline in revenues in local currency on the Hungarian market amounted to 12% year-on-year. According to the Group’s own data, this result is weaker than the result of the entire market of decorative paints and agents for wood protection and decoration, which contributed to a decline in the Group’s market share.

(10.1% share in the revenue structure, -0.2% y/y)

In Ukraine, the Group generated revenues in the amount of PLN 80,595 thousand, i.e. lower by 8.9% (PLN 7,844 thousand) compared to 2023. After a satisfactory the H1 of 2024, consumer demand for paints and varnishes weakened in the middle of the Q2 of 2024. The Management Board of the Company indicates that the circumstances on the Ukrainian market remain uncertain and demanding.

On other markets (“Other” segment), the Group generated sales revenues of PLN 38,224 thousand, i.e. by 23.7% (PLN 11,867 thousand) lower than the year before. The share of other markets in the revenue structure amounted to 4.8%, (-1% y/y). In total, the Group’s revenues generated in 2024 on foreign markets accounted for 27,8% of its total revenues.

In the reporting period ended as at December 31, 2024 no changes in the presentation of the Group’s operating segments occurred.

Sales revenues of the Śnieżka Group by countries in PLN ‘000

	for the period of 12 months ended as at 31 December 2024	Structure	for the period of 12 months ended as at 31 December 2023	Change (y/y)
Poland	576,814	72.2%	591,090	-2.4%
Hungary	102,807	12.9%	128,153	-19.8%
Ukraine	80,595	10.1%	88,439	-8.9%
Other	38,224	4.8%	50,091	-23.7%
Total sales	798,440	100.0%	857,773	-6.9%

The Group’s sales structure is dominated by decorative products. In 2024, the Group generated revenues from their sales in the amount of PLN 662,026 thousand – i.e. 4.7% (PLN 32,633 thousand) lower than the year before. Decorative products accounted for 82,9% of the Group’s total sales revenues. Construction chemicals featured the second highest share i.e. 10,9% (PLN 86,943 thousand) in the sales structure. This category recorded a lower result by 15.4% (PLN 15,860 thousand) compared to 2023.

Sales revenues of the Śnieżka Group by product categories (in PLN ‘000)

	For the period of 12 months ended as at 31 December 2024	Structure	the period of 12 months ended as at 31 December 2023	Change (y/y)
Decorative products	662,026	82.90%	694,659	-4.70%
Construction chemicals	86,943	10.90%	102,803	-15.40%
Industrial products	6,583	0.80%	7,485	-12.10%
Goods	34,023	4.30%	38,833	-12.40%
Other revenues	5,932	0.70%	7,661	-22.60%
Materials	2,933	0.40%	6,332	-53.70%
Total sales	798,440	100.00%	857,773	-6.90%

In terms of volume, the sales of the Group’s products in 2024 amounted to 102.1 million l/kg and was lower by 10.2% compared to 2023. For several years now, the industry has been facing a sharp decline in sales volumes and a simultaneous increase in prices. In the reporting period, the Group sold 60.247 million l/kg of decorative products (-10.4% y/y), 41.671 million l/kg of construction chemicals (-9.9% y/y) and 0.194 million l/kg of other industrial products (-10.6% y/y). The sale of goods, materials and services in terms of quantity is not disclosed due to the variety of measurement units used (tons, litres, pcs.) and the fact that it is not the main object of the Group’s business.

Product sales structure in the Śnieżka Group by categories in thousand litres / kilograms.

	the period of 12 months ended as at 31 December 2024	the period of 12 months ended as at 31 December 2023	% change (y/y)
Decorative products	60,246.6	67,235.8	-10.4%
Construction chemicals	41,671.0	46,269.9	-9.9%
Industrial products	194.1	217.1	-10.6%
Total sales	102,111.7	113,722.8	-10.2%

FFiL Śnieżka SA

Śnieżka SA generates revenues primarily from:

the sale of products and goods (based on agreed transfer prices) to Śnieżka Trade from Colours Sp. z o.o., responsible in the Group for marketing and sales to customers and other Group companies;
dividends received from subsidiaries.

Additional revenues, constituting a small share of the total, are generated by FFiL Śnieżka SA from the sale of raw materials for production and services rendered in favour of its subsidiaries.

In 2024 FFIL ŚNIEŻKA SA generated sales revenues in the amount of PLN 521,665 thousand, i.e. 8.3% (PLN 47,071 thousand) lower than in 2023. The predominant share in the Company’s total revenues in the reporting period was the sale of products and goods to Śnieżka ToC, recognized in the “Poland” segment. This segment accounts for 96.5% of the Company’s sales structure. Compared to the previous year, sales in this segment decreased by 9.3%, i.e. by PLN 51,701 thousand.

In addition, in the reporting period FFiL Śnieżka SA also generated revenues of PLN 18,369 thousand – mainly from the sale of materials (raw materials) to its subsidiaries located in Hungary and Ukraine. The Company’s revenues from sales to foreign markets (segments: “Hungary”, “Ukraine” and “Other”) accounted for 3.5% of its total revenues.

Sales revenues of the FFIL ŚNIEŻKA SA by countries in PLN ‘000

	the period of 12 months ended as at 31 December 2024	Structure	the period of 12 months ended as at 31 December 2023	Change (y/y)
Poland	503,296	96.5%	554,997	-9.3%
Hungary	945	0.2%	1,565	-39.6%
Ukraine	16,168	3.1%	11,678	38.4%
Other	1,256	0.2%	496	153.7%
Total sales	521,665	100.0%	568,736	-8.3%

In the breakdown by product categories, the Company’s sales structure – as in the case of the entire Group – was dominated by decorative products, whose share in revenues amounted to 78.0% (-8,9% r/r). The next places in the sales structure were taken by: construction chemicals (4.7%), goods (6%) and other revenues (7.7%) respectively.

Sales revenues of the FFIL ŚNIEŻKA SA by product categories in PLN ‘000

	the period of 12 months ended as at 31 December 2024	Structure	for the period of 12 months ended as at 31 December 2023	Change (y/y)
Decorative products	406,852	78.0%	446,575	-8.9%
Construction chemicals	24,402	4.7%	34,579	-29.4%
Industrial products	193	0.0%	183	5.2%
Goods	31,203	6.0%	33,434	-6.7%
Other revenues	40,210	7.7%	34,886	15.3%
Materials	18,805	3.6%	19,079	-1.4%
Total sales	521,665	100.0%	568,736	-8.3%

In quantitative terms, the sale of the Company’s products in 2024 amounted to 51.713 million l/kg and was by 12.1% lower than in the previous year. In the reporting period, the Company sold 42.079 million l/kg of decorative products (-8.5% y/y), 9.626 million l/kg of construction chemicals (-24.9% y/y) and 0.735 million l/kg of other industrial products. The sale of goods, materials and services in terms of quantity is not disclosed due to the variety of measurement units used (tons, litres, pcs.) and the fact that it is not the main object of the Company’s business.

Product sales structure in FFiL Śnieżka SA by categories in thousand litres / kilograms.

	the period of 12 months ended as at 31 December 2024	the period of 12 months ended as at 31 December 2023	% change (y/y)
Decorative products	42,079.3	45,995.5	-8.5%
Construction chemicals	9,626.5	12,819.5	-24.9%
Industrial products	7.3	6.2	17.9%
Total sales	51,713.1	58,821.2	-12.1%

Raw materials

Financial standing