AB SNAIGĖ: one-third higher sales did not compensate for production cost increase due to higher prices of raw materials
According to unaudited consolidated data, AB Snaigė reached LTL 16.5 million in the first half of 2021. EUR turnover, i.e. 34 per cent higher than in the same period last year.
According to Mindaugas Sologubas, General Director of AB Snaigė, the increased sales did not compensate for the increased cost of production due to the increase in raw material prices.
"In the first half of this year, like many other producers, we experienced the shortage of the raw materials and their price rise." - said M. Sologubas. "-The shortage of raw materials forced us to cancel some orders, increased price raised the cost of our products to such an extent that we became uncompetitive in some markets. In order not to lose our markets and customers, we worked with a lower sales margin. Therefore, the Company's unaudited consolidated EBITDA for the first half of this year reached 0.4 million. EUR."
Despite the unfavourable circumstances, during the first half of this year, AB SNAIGĖ continued developing its professional and commercial equipment product line. The Company has expanded its medical refrigerators line and released a refrigerator that meets the European quality standard DIN13277. This standard certifies that the product meets the highest quality and parameter requirements for this category. The product is currently being tested in German laboratories. After testing, AB Snaigė will open a new page in its history - it will start the serial production of certified medical refrigerators.
In the first half of 2021, AB SNAIGĖ exported to almost 30 European, Asian and African countries. Exports accounted for 92 of the total turnover of the Company. The Company's largest foreign sales markets in the first half of the year were Germany (23%), Ukraine (14%), Morocco (8%), Austria (7%), and the Czech Republic (6%).
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