AB SNAIGE 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 Snaige 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 SNAIGE 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 SNAIGE 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 SNAIGE 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 SNAIGE 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 Manager
Mindaugas Sologubas
Phone no. +370 652 11997
