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Selena Group: net profit doubled after three quarters of 2019

2019.11.29

Selena Group, one of the leading producers and distributors of construction chemicals and the owner of the TYTAN brand – after three quarters of 2019 reports a net profit increase of nearly 100% YoY – to PLN 46.98 million. In this period, revenue exceeded PLN 1 billion, up 8.8%, while EBIT rose by 34% to PLN 64.42 million. In 2019, the company maintained its sales dynamics on the back of organic growth. Its gross profit margin increased as well, helped by a higher share of innovative products and favourable raw material prices. Additional factors that contributed to the net profit increase were cost discipline and the strong result on financial activity.

Selena Group continued to grow in all of its key foreign markets, including: Ukraine, China, Kazakhstan, Romania, Spain, the USA and Central Europe, but also in Brazil, Turkey and Russia. Like in the previous quarters of 2019, in the third quarter of 2019, margins were adversely affected by the higher production cost caused by salary increases driven by the situation in the labour market and higher electricity costs.

Krzysztof Domarecki, CEO of Selena FM SA.jpg“After three quarters of 2019, we have observed an increase in sales in all our geographies and in most product groups. It should be emphasised that in all cases our growth is higher than the GDP growth or the construction output growth, which means that we are growing faster than the market. This robust performance is primarily founded upon the effects of our strategy based on focus on the user and our innovative products developed by the international R&D teams coordinated by Selena Labs in Dzierżoniów. Our products improve the efficiency of use by reducing the building’s heat losses and energy demand for heating and cooling. These solutions include, for example, COOL-R®, the highly reflective, waterproofing roof coating, and the Energy 2020 foam, which is characterised by high thermal insulation, reducing heat losses by up to 60%. This in turn leads to energy savings. Suppliers of building materials should support the safety, speed and efficiency of construction, and respond to the megatrends of the modern world, e.g. by showing particular care for the natural environment and sustainable development. That said, the future of the Polish construction, and the condition of the natural environment in the long-run, depend on decisive and conscious actions to be undertaken by manufacturers and contractors alike”, – Krzysztof Domarecki, CEO of Selena FM S.A. said.

By the end of 2019, Selena Group expects to see strong sales in its most significant markets and a further increase in the share of innovative, high-margin products. The prices of raw materials for foam and silicone production should remain stable until the year-end. As regards bitumens, their price is directly linked to oil prices.