Amica Group presents its long-term strategy for 2024-2030+, titled "Back to Profitability."

The largest Polish manufacturer of household appliances intends to return to a path of growth and increasing profits, while also aiming to become a dividend-paying company. Amica will focus on European markets and the range of heating equipment, with a significant role attributed to ESG areas in achieving its objectives. Key concerns include broad concepts of quality and efficiency.

“In the past 10 years, we have focused on expansion in Western Europe, investing in production capacity and new technologies, optimising operations, and strengthening our financial base. External factors, such as the pandemic, the war in Ukraine, and our exit from the Russian market, hindered our full achievement of the HIT2023 strategy objectives, resulting in the loss of sales of around 300,000 heating units annually. The new ‘Back to Profitability’ strategy, announced during a cyclical downturn in the household appliance industry, aims to ensure Amica Group's sustainable profitability and harness the potential of our manufacturing centre in Wronki, Greater Poland. We intend to take advantage of the opportunities we foresee in the coming years,” says Jacek Rutkowski, CEO of Amica S.A.

The Amica Group plans to achieve sales growth exceeding 7% per year from 2030, with an expected EBITDA profitability of 5% in 2027 and 7% in 2030 and beyond. The aim is also to increase the RONA (Return on Net Assets) ratio to 14% by 2027 and exceed 17% by 2030. The company intends to maintain its net debt to EBITDA ratio below 2, and to increase the gross margin on product sales to 25% in 2027 and 28% in 2030. Amica also sees the potential for dividend payments while maintaining stable liquidity.

“In the first half of 2024, we recorded a 3.5% EBITDA margin, a RONA of 9%, a decline in revenues, and a net loss. The new strategy clearly shows that we intend to significantly increase the value generated for shareholders, including the expected doubling of EBITDA margins with sales growth, strengthening our position in all key markets, generating profits, and the possibility of annual dividend payouts,” says Michał Rakowski, Vice President of Finance at the Amica Group.

In its new strategy, Amica’s mission is to offer durable and reliable household appliances with the highest quality service to facilitate consumers' daily lives, respecting local traditions and the heritage of strong local brands (Amica, Fagor, Gram, Hansa, CDA). The Amica Group's vision is to become the most recommended brand of heating equipment in key European markets. The company intends to focus on sales in European countries, with planned sales development in specific geographical markets based on dedicated sales and marketing strategies. Amica has developed a product strategy and post-purchase experiences to enhance its appeal to European consumers while identifying product, operational, and financial factors to become the preferred B2B partner.

The company emphasises quality, customer satisfaction, and production efficiency, aiming to increase production volumes at its heating equipment factory in Wronki by approximately 65% compared to current levels. Strategic pillars also include HR issues and organisational culture, including engagement, support, talent attraction, and development.

The Amica Group is additionally implementing its ESG strategy “Action for Climate,” presented in December 2022, which sets social and governance goals for 2025 and 2030, as well as environmental goals for 2040 and 2050. In January this year, Amica improved production efficiency by launching a cogeneration plant (simultaneous production of heat and electricity). The special purpose vehicle, Amica Energia, registered in April, will primarily focus on developing photovoltaic installations and aims to acquire land on a lease basis over the next two years, obtaining the necessary administrative decisions for a PV farm with a minimum capacity of 30 MWp.

In recent months, Amica has been recognised with awards such as the ESG Capital Market Hero (Individual Investors Association), ESG Leaf Policy, and ESG Company of the Year by Gazeta Finansowa. These awards are a testament to the company’s continuous efforts in sustainable development, investor relations, and social responsibility.