Snaige - Interim information

2016: profit of Snaigė AB on the rise, while sales dropped

Alytus, Lithuania, 2017-02-28 15:53 CET (GLOBE NEWSWIRE) -- According to
consolidated unaudited data, in 2016 Snaigė AB reached EBITDA of EUR 4.1
million, or an improvement by 25% since 2015. 

The consolidated unaudited turnover of the company exceeded EUR 40 million and
dropped by 12% (compared to 2015). 

 According to Gediminas Čeika, the Director General of Snaigė AB, the reason
why the sales dropped was aggressive strategy pursued by a number of Chinese
and Turkish manufacturers on the Western markets. “Chinese and Turkish
manufacturers in their efforts to take markets in the West have demonstrated a
rather desperate behaviour, and offered their products at abnormally low rates.
We cannot afford operating at loss, and this is why we lost some of our sales.
I am certain though these losses are but temporary. No-one can afford operating
at loss, not even Chinese”. 

Despite a drop in turnover, Snaigė AB still generated unaudited
non-consolidated net profit of EUR 1.2 million, i.e. more than doubled the
profit since 2015. 

Mr Čeika believes the company succeeded in improving profits by making a timely
turn to other markets. Sales in Ukraine, important market for the company, have
increased considerably. 

According to the surveys by GFK, Snaigė products in Ukraine are popular, so
rank third or fourth on the list. 

The Director General of Snaigė AB is also proud of the company performance in
the Baltics, specifically in Lithuania. “What makes me happy is seeing us
leading sales charts nationwide, coupled with a largest market share in 2016,
at 18% of the entire market for refrigerators and freezers” (based on the
survey conducted by GFK). 

In 2016, Snaigė AB exported 88% of its products (to the total of 33 countries).
Jordan market was the last we have entered. Numbers-wise, Ukraine (with 20%),
Germany (with 14%), and France (with 12%) remain our key export partners. 

According to Gediminas Čeika, our sales volumes in Germany, France, Nordic
countries and other quality-sensitive markets demonstrate top quality of
products offered by Snaigė and compliance with EU standards. To quote Mr Čeika,
“I am happy that the quality and advantages offered by our products are valued
not only by Lithuanians, but also by French, German and Scandinavian consumers
spoiled by a wide choice of products,” said Mr Čeika. “I am proud of our
company, which on the global scale is just a small enterprise, but which is
able to compete against this industry’s giants.” 

In 2017, Snaigė AB expects to offer the market a few new models of
refrigerators and freezers, to advance sales in recovering markets of Russia
and Ukraine. However, according to Mr Čeika, the company has both interesting
ventures and challenges ahead. “A number of row materials suppliers have
announced rising prices for raw materials and other materials already. This
will inevitably affect our business, and step-up the competition. However, we
are not afraid of difficulties, we are an experienced, proven team, and
certainly we will find an appropriate solution.” 


         Director General of Snaigė AB
         Gediminas Čeika
         +370 315 56206

Attachments:

Snaige financial statements 2016 with confirmation.pdf