AB SNAIGĖ doubles EBITDA in the first half of the year
August 10 2023 - 10:15AM
AB SNAIGĖ doubles EBITDA in the first half of the year
AB SNAIGĖ achieved excellent results in the
first half of the year, clearly reflected in the doubling of its
consolidated unaudited EBITDA from EUR -1.7 million for the same
period last year to EUR -0.8 million this year. The
significant and positive difference between this year's and last
year's EBITDA demonstrates the Company's potential and viability.
It is clear evidence that the Company is moving forward in the
right direction.
Mindaugas Sologubas, Managing Director of Snaigė
AB, says that not only the achieved results are pleasing, but also
their positive dynamics. "The Company is slowly but surely climbing
out of a deep deficit", says Sologubas. We are particularly pleased
with the second quarter results: since the announcement of the
restructuring in the first half of 2022, we finally have positive
EBITDA. Although we only earned EUR 2,000, this is a huge
breakthrough for the Company, as last year in the same quarter we
had an EBITDA loss of EUR 1 million and were in a really unenviable
situation. Even under the most adverse conditions, we did not give
up and achieved a positive result thanks to the efficient work of
the entire SNAIGĖ team, the support of our customers and
suppliers.
Sales revenues of EUR 9.2 million in the first
half of this year are around 20% lower than in the same period last
year. According to M. Sologub, this is a consequence of limited
working capital. "We have more orders than we can produce due to
limited working capital, so we are forced to postpone or even not
accept some orders. It is not possible to attract additional
financing and increase sales volumes in the absence of an approved
restructuring plan," said M. Sologubas.
Although the Company's restructuring plan has
not been approved due to the legal proceedings that have been
dragging on for almost a year, AB SNAIGĖ is already implementing
its objectives: it is increasing the production volumes of more
profitable professional refrigeration equipment (from 61% in 2022
to 69% in 2023), expanding the range of these products, employing
its own production facilities to fulfil the orders of other
manufacturing companies, expanding the base of its existing
customers, and expanding its reach into new markets. By
implementing its strategy and strengthening its financial position,
the Company is effectively tackling the challenges of the past and
striving to achieve sustainable growth for the future.
AB SNAIGĖ is currently awaiting a second
decision of the Kaunas Regional Court on its restructuring
plan. The Company hopes that the court will approve the plan,
thus allowing the Company to operate and pay its creditors.The vast
majority (over 80%) of the company's non-mortgage creditors and
Sodra support the plan. The Company is supported by the
Economic Committee of the Seimas and the vast majority of its
customers. AB SNAIGĖ was forced to embark on a restructuring
process in order to preserve the continuity of its operations,
which were threatened by the outbreak of the war in Ukraine last
year.
General ManagerMindaugas SologubasPhone no. +370
652 11997
- Consolidated INTERIM financial statements and interim report_6
month 2023
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