Profit of SNAIGE AB was cut by rising prices of raw materials

According to unaudited consolidated data, the turnover of Snaige AB amounted to EUR 7.7 million in the first quarter of 2018, i.e. 7% more than in the same period last year.

Despite the increase in sales, the company suffered unaudited consolidated loss of EUR 0.9 million. It was caused by the increased prices of raw materials and increased depreciation charges after the revaluation of the company's assets.

According to Gediminas Ceika, the Director General of Snaige AB, the results of the first quarter were not unexpected. "The result of the company is the outcome of the scissors formed between raw material prices that have been rising over the past year as well as the production prices that did not rise", said Mr. Ceika. "I'm sure that this situation affected all the manufacturers of refrigerators, but it was less severe for those who also produce other household appliances."

According to Mr. Ceika, Snaige AB was one of the first manufacturers of refrigerators to announce the increase of its production prices. "Of course, this message was not accepted well by all the customers, but after a certain adaptation period everything will get into their places", said Gediminas Ceika. "In addition, the company is serious about diversification of its portfolio of products."

Last year SNAIGE exported its products to more than 30 European and Asian countries. The company‘s largest markets in terms of income were Germany, France, the Ukraine, Lithuania and Czech Republic. While the largest increase of income, if compared to the previous year, was in Norway, Portugal, Kazakhstan, Russia and the Ukraine.

The company implemented two new design lines of refrigerators. New refrigerators shall arrive to the shops and fascinate the customers this year already.

Managing Director
Gediminas Ceika
+370 315 56206

Attachment

• Snaige financial statements 3 months 2018 with confirmation