The war affected the first quarter results of AB SNAIGE.
According to unaudited consolidated data, in the first quarter of 2022, the Company reached almost 6 million EUR turnover, i.e. 20 percent less compared to the same period last year. The Company incurred a 0.7 million EUR unaudited consolidated EBITDA loss.
According to Mindaugas Sologubas, General Manager of AB Snaige, the results of the first quarter were directly and indirectly affected by the war. "We lost one of the most important markets - Ukraine, for obvious reasons we transported very few refrigerators to this country. In January-February, even before Russia invaded Ukraine, sales were very low, apparently, people no longer cared much about household appliances” said M. Sologubas. "March was dead in terms of sales, most customers, even in Western Europe, stopped their orders, and everyone was waiting for what would happen next. I would say that the sales result achieved under these conditions can be assessed as satisfactory. "
The price increase of raw materials, materials, transport, and energy resources also had a significant impact on the Company's negative results. With the outbreak of the war, these resources became even more expensive, supply chains became even more disrupted, and transport services began to be scarce.
"Due to the lack of raw materials and their delivery delays, we were unable to place some orders on time. We have often been forced to produce what we could produce rather than what we needed to" said M. Sologubas. Late payments by some customers increased the shortage of working capital. The situation has been exacerbated by rising energy costs. They have risen several times and became a daunting burden for the Company. All of this had a negative impact on the Company's results.
However, despite the difficulties, the Company continues to introduce its new professional and medical products to European markets and develops new projects.
According to Mindaugas Sologubas, the Company has chosen this line of business because it has many years of experience in the refrigeration business, experienced specialists, and the necessary technical base for the development and production of such products. The Company has been urged by many of its customers to get involved in this area. In addition, the business of professional and medical devices is more profitable and less competitive. The Company planned that professional and medical refrigeration appliances will account for more than half of the Company’s portfolio. However, establishment in this business category is unexpectedly delayed due to the above-mentioned circumstances.
In the first quarter of this year, AB Snaige exported 95% of its production. The largest sales markets were Germany, the Czech Republic, Italy, and Austria.
Sekenora Holdings Limited, a Cypriot investment company, is the main shareholder of SNAIGE. SNAIGE Group owns two subsidiaries: TOB SNAIGE UKRAINA and UAB ALMECHA. The Company has nothing to do with the Russian company Polair, as is erroneously stated in other sources.
Attached: AB Snaige Consolidated Interim Financial statement for three months period ended 31 March 2022 (unaudited).
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