Selena Group owner of the Tytan brand and one of the world’s three largest producers of polyurethane foams posted net profit amounted to PLN 6.1 million, up PLN 10 million compared to Q1 2018. The Group’s consolidated revenue has increased by more than 9% year-on-year to PLN 271 million and EBIT amounts to more than PLN 10 million. Gross profit margin increased by 2.6 pp vs. Q1 2018, and stands at 31.3%.
The company’s continues its trend that set in after the 2018 results, and is increasing its sales in most of its key markets, including Ukraine (+47%); United States (+38%); China (+31%); Spain (+18%), Kazakhstan (+13%); Romania (+10%), Central Europe (+10%); Brazil (+8%) and Poland (+5%). Revenue from sales increased mainly on the back of organic growth, bigger share of innovative products with higher margins and optimized formulations of products with invariably high quality.
“Selena continues the upward trend in trading performance. The first quarter results we are presenting today was very satisfying. Our revenues and EBIT are at all-time highs as for this part of year – but quite importantly, we have recorded net profit in this off-season period for the construction industry. It’s even more important as traditionally this is the most difficult period for the sector. We owe our success to a number of factors: Above all to the steady optimization of costs, improvement of the sales system and implementation of high quality products – the output of our R&D. Not without significance is also the “flattening” of the seasonality effect in the sector, due to relatively mild winters and early springs, which helps extend the period of construction or finishing works. At the same time, the situation in the raw materials market is calming down, which makes it easier to plan purchases and obtain good margins on products. Such a strong Q1 result and the efficiency-improvement measures undertaken by the company certainly augur well for the whole of 2019”, Krzysztof Domarecki, the CEO of Selena FM S.A., says.
In 2019, Selena Group expects the situation in the construction market to become stable, both in terms of raw material prices and the potential for sales growth in key markets, including in the United States, Spain, Western Europe, Poland, China, with an improvement expected in Russia. The company also plans to continue to increase the share of innovative products in total sales.