According to unaudited consolidated data, in the first quarter of this year AB SNAIGĖ reached over 4.6 million Eur turnover and suffered 0.8 million EUR unaudited consolidated EBITDA loss.
According to Mindaugas Sologubas, general director of AB "Snaigė", the first quarter of the year is always the worst, because the season of sale of refrigeration equipment begins in the hot season. And this year it was even worse due to the depletion of energy resources, infliation and increased interest rates on loans. These circumstances did not encourage consumers in all the company's markets to upgrade their household refrigeration appliances. There was also a huge shortage of sales to Ukraine, which in the first months of this year survived numerous bombardments of electrical stations and the cities themselves, and almost did not buy the company's refrigerators.
AB SNAIGEI was much better at selling commercial refrigeration equipment. In this segment, there were more orders than the company could produce due to the lack of working capital. Most of the commercial equipment was exported to Germany, Italy and Poland.
The rise in energy and the increase in average wages also increased the company's own costs. The purchase of raw materials and parts in advance also worsened the company's result. In the opinion of M. Sologubas, if the company had sufficient working capital, its sales and profitability would increase significantly.
Despite the circumstances, AB SNAIGĖ does not intend to stop and abandon its plans. The company continues to develop its new line of industrial refrigeration products, making its way to new markets and new business segments. According to M. Sologubas, the second quarter must be better: more and more orders are placed by Ukrainian customers, we hope for a successful outcome of negotiations with potential customers of medical refrigeration equipment and monoblock refrigeration units.
AB SNAIGĖ is currently awaiting the decision of the Court of Appeal of Lithuania on its restructuring plan. The company expects the court to approve the plan, thus enabling the company to operate and settle with its creditors.
The vast majority (over 80 per cent) of all non-mortage creditors of the company and SODRA support this plan. The company is supported by the Economic Committee of the Lithunainan Parlament and a large number of the company's customers. AB SNAIGĖ was forced to start the process of reconstruction in order to preserve the continuity of activities, which was threatened by the outbreak of the war in Ukraine last year.
AB Snaige consolidated interim financial statements for three months period ended 31 March 2023 (unaudited).
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