HOUSEHOLD APPLIANCE MAKER FEELS THE EFFECTS OF WAR AND RISING COSTS

Amica Group’s revenues fell slightly to PLN 3.4 billion in 2022. The company admits that costs rose faster than prices for consumers. As a result, it ended the year with a loss, although 2023 should already be better.

Like other European household appliance manufacturers, the Polish company also suffered a jump in its cost base, particularly in raw materials, components, and wages, which was not fully offset by increases in selling prices. Together with the effect of the high base of 2022, this negatively affected the dynamics of financial results presented compared to the same period a year ago.

In addition, since the end of February - because of the Russian aggression in Ukraine - eastern markets, important for the group’s sales, have essentially disappeared. As a result, the Amica Group ended the second quarter of last year with negative financial results, which, however, were already significantly better in the third quarter. The good results generated in the fourth quarter, in turn, allowed Amica to return to positive operating profit and gross profit cumulatively since the beginning of the year, also clearly increasing the EBITDA result. The final figure for the year as a whole was 59.4% lower at PLN 87.7 million, while net profit fell 108.7% and the group reported a loss of PLN 9.7 million.

“We already faced rising costs in 2021, and there were also demand challenges in the past year. We have already accomplished a lot, but much remains to be done. We are working on our next long-term growth strategy, developing foreign markets and investing in efficiency. 2023 should bring positive news for our shareholders,” Jacek Rutkowski, CEO of Amica Group, told Rzeczpospolita daily.

Now, however, the threat to manufacturers is the slowdown in demand as a result of the high inflation persisting in most European countries.