After the four quarters of 2010, Selena Group posted cumulative sales of PLN 879 m vs. PLN 641 m achieved in the corresponding period 2009, which is an increase by 37%. The gross profit in this period amounted to PLN 267 m, up 23% on the previous year. The operating profit came in at PLN 32.6 m, while the net profit was PLN 25.1 m. In 2011, Selena expects to achieve a 20% increase in sales leveraging off the existing Group structure.
Performance of Selena Group after 4 quarters of 2010 is an effect of the consistent strategy of geographic expansion of the company’s business and development of its product range. The increase in sales in 2010 was mainly driven by: consolidation of the newly acquired entities – manufacturer of roofing materials Izolacja – Matizol of Gorlice, and Spanish Quilosa, a leader in the Iberian market of sealants and adhesives. Another contributing factor was the organic growth of sales in Poland, Eastern Europe and Brazil. December 2010, saw completion of the foams production plant in Nantong, a special economic zone in China. The investment allows the company to increase its production capacity. Ultimately, the plant is to generate annual sales of EUR 30 m – EUR 35 m.
After 4 quarters of 2010, Selena notably improved its position in the Eastern European markets. In Russia, the company closed 2010 with sales by 45% higher than in 2009. This is a result of the economic growth and a visible improvement of the construction market with its demand for modern office and retail space. Also, the Group posted an increase in sales by 8% in the otherwise stagnant Spanish market.
In the fourth quarter of 2010, Selena Group posted a loss of PLN 4.6 m. The poor performance was affected by: seasonality effect in the sector – unfavourable weather put construction work in Poland and the Central Europe on hold starting from November last year; an increase in commodity prices in the world markets, and the cost of restructure of the newly acquired entities. As a result, gross profit decreased by 5% year-on-year.
Selena Group focuses on Research and Development, as well as on promoting innovative technologies that follow the sustainable development concept, i.e. are safe to the environment and to the users. The Group has its laboratories in Poland, Spain, China and Turkey, where work is conducted on new formulas and solutions. This results in a number of innovative products implemented by Selena, including the sealants line Durability and Comfort, transparent mounting adhesives or polyurethane foams Tytan O2, which do not emit hazardous vapours during application.
“Conscious compliance with the sustainable development principles is a critical aspect of operations of any enterprise. Given the specific nature of the Selena’s sector, care about the environment and provision of solutions that are safe to the users is a matter of priority for us. We are constantly looking for new technological solutions for the construction business. In 2011, we plan to introduce a number of major product innovations” – said Krzysztof Domarecki, CEO of SELENA FM SA, the Group’s managing company.
In 2011, unstable situation is expected to prevail in the commodities market. Selena Group plans to transfer commodity price increases to the market, using the strategies that have been individually elaborated for particular countries and segments. To keep operating costs down, the Group’s executive team intends to continue the optimisation and integration programmes designed to remodel sales processes and ensure full utilisation of the global distribution network. In 2011, Selena expects to see clear effects of implementation of the SAP BI controlling module started in 2010 with an intention to improve effectiveness of management and reporting within the Group. The Group also sustains its business growth plans in Asia and Central Europe to gain a stronger market position in those regions.