Summary of 2021/22 - stable results despite difficult conditions
Unfavorable market conditions The beginning of last year and the outbreak of war in Ukraine brought about a dramatic change in the economic situation not only in the region, but also globally. The biggest challenge has become galloping inflation, which affects all aspects of economic and social life. – For us, as a food producer, the increase in prices of agricultural raw materials (including cereals and oilseeds) is extremely painful. – says Boguslaw Miszczuk, President of the Management Board of Sokolów S.A. - Moreover, the increasingly higher prices of energy, gas, fuels and other raw materials significantly contributed to the increase in production costs. There is also a drastic increase in the prices of materials such as foils, trays, labels, cartons or spices, and the situation is further complicated by restrictions on their availability. As Boguslaw Miszczuk points out, other challenges affecting the meat industry, such as the ongoing ASF epidemic and instability on the raw material market, should also be taken into account. - The situation of breeders today is extremely difficult and uncertain - emphasizes Boguslaw Miszczuk. - No guarantee of earnings or even reimbursement of costs incurred means that breeding is teetering on the verge of profitability or is below this level. The pig stock in Poland is decreasing, which of course means higher prices. Stable development in times of economic uncertainty Operating in an extremely difficult business environment, we have achieved satisfactory results. - Despite a very complex economic situation, subject to many dynamic changes, we managed to maintain a stable market position - emphasizes Boguslaw Miszczuk. – We remain invariably among the largest food producers in the country and among the industry leaders. We have 8 modern, specialized plants and employ over 9,500 employees. We have a well-developed distribution network - 39 own distribution centers and over 300 own stores, 93 of which provide online shopping services. Sokolów is undoubtedly a strong brand, which is also confirmed by the first place in the Forbes TOP 200 ranking of the best Polish brands in the "Cold meats and meat products" category. Boguslaw Miszczuk points out that despite many unfavorable conditions, the company implemented investments in accordance with previous assumptions, allocating over PLN 276 million for them last year. – We implement them according to a plan that is part of the new, 5-year strategy of the Danish Crown group, to which Sokolów belongs. Its slogan "Feeding the Future" sets the main direction of our activities, which is the development of sustainable food production - says Boguslaw Miszczuk. - The investments we carry out allow us to increase production capacity and reduce the consumption of natural resources and minimize our impact on the environment. Last year, the value of sales increased by 18.5% (over PLN 800 million). - This is a record result in the history of our company, but of course the factor of fundamental importance here is inflation, which was influenced by the increase in raw material and production prices - notes Boguslaw Miszczuk.