Dear Shareholders,
Color means passion, inspiration and creativity. That is why we at Śnieżka appreciate that inspiring people in our surroundings, especially through the products we offer in our industry should begin with ensuring that our internal corporate processes exude innovation. That is also how we perceive our path to attaining our ambitious business objectives and endeavoring to strengthen our market position.
Color signifies passion
We have completed another year replete with challenges we tackled with passion in a world of chromatic inspiration. From our inception the Polish market has played a crucial role in our strategy. Last year, it accounted for 78% of our sales. Estimates indicate that in 2016 we took second place on the domestic paint and varnish market as the sole player controlled by Polish capital. We are proud of our roots. At the same time, we are rapidly extending our offering to penetrate new export markets and we are open to exploring more and more new opportunities. Last year the Śnieżka Group’s products were distributed to 33 countries with the following countries, as in previous years, playing a key role: Ukraine where according to the estimates we have been the leader for years and Belarus where, as in Poland, we are the number two player.
Piotr Mikrut CEO
Our business performance ratios best reflect the effectiveness of our market activities. The Group closed 2016 not just with a record-breaking net profit but also with a topline that is one of the highest in its history. The Group reported sales of PLN 575,636 thousand, signifying 104.6% growth. We are also satisfied with the parent company’s results. Its topline was PLN 518,152 thousand, signifying 104.3% growth. In turn, by paying another record-breaking dividend (PLN 3.15 per share) in July 2016, we not only showed our consistency in pursuing our dividend policy but also demonstrated that we appreciate the trust our shareholders place in us.
Color signifies creativity
We attribute a key role to innovation in building our competitive advantage. Our modern R&D Center stands at the very core of our innovation as this is the unit that designs new product solutions. In 2016 we dedicated a lot of attention to creating a landmark paint product launched on the Polish market in early 2017 under the name of Magnat Bedroom and Children’s Room that removes airborne formaldehydes. By creating paint to take care of people’s immediate vicinity we demonstrated our commitment to creating solutions aligned to our customers’ growing expectations. The vast majority of our products are decorative products. That is why in 2016 we launched the highest number of new products in this product category. We are close to our customers. Since we research and analyze their needs we are able to offer the highest quality products in all our distribution channels, including our e-commerce channel that is gaining more traction. In 2016 our parent company also kicked off efforts to build a modern logistics center. Finalizing this investment slated for completion in 2019 will help us serve the market even more effectively.
Color signifies inspiration
In our day-to-day activity we do our utmost so that our organization can serve as a source of inspiration for its employees, associates and its community. 2016 was a period in which the parent company implemented many significant internal projects including the following: redefining our HR strategy and implementing the Book of Organizational Values we devised previously. All these processes are conducive to building a culture of great commitment and above average identification with the firm’s ambitious business objectives among its employees. For years Śnieżka has also inspired the people in its surroundings through the actions it takes in Corporate Social Responsibility. Initiatives to run activities focused on education and assistance hold a special place in this area. In 2016 we continued to support many groups of beneficiaries through the Śnieżka Your Opportunity Foundation and through proprietary social projects such as: “Colorful Playing Fields” and “Children’s World in Colors”. We are running the latter of these two projects in Poland and Ukraine. We consider children and youth to be the key group of beneficiaries for the projects we run. We are striving to enhance their motivation and opportunities for growth and their “perception of positive colors in the world”. In conveying our 2016 annual report, on my own behalf and on behalf of the Management Board I would like to thank all of you for your contribution and commitment to building the Śnieżka Group’s position. I would also like to extend my thanks to all of you who place your trust in us as our associates and shareholders. I am pleased that together we form such a strong Group and that we can pursue ever more ambitious business objectives with satisfaction and unwavering determination.
