Poland’s largest household appliance manufacturer is patiently awaiting the cyclical recovery in demand on the European market for durable goods, while using the downturn to implement measures aimed at improving business efficiency. The implementation of the ‘Back to Profitability’ strategy is a response to changes in the business environment and has already brought tangible benefits.
The Amica Group (WSE: AMC) recorded revenue of PLN 1,149.2 million from agreements with customers in the first half of 2025, which represents a relatively good result year-on-year (−8%), given the complete phase-out of sales on the Russian market, the sale of certain non-core assets, the strengthening of the PLN, and the challenging situation on the European household appliances market. The Polish market generated 34% of revenue from the sale of products and goods, and was the only market in Europe to show positive growth (+4%). The Western region, including Scandinavia, accounted for 51% of sales, recording a 10% year-on-year decline. Other markets saw a 12% year-on-year decrease in sales value, accounting for 15% of revenue. Sound management decisions and initiatives undertaken in previous periods that increased business efficiency led to a 14% year-on-year increase in EBITDA to PLN 49.9 million, and a 33% rise in operating profit, to PLN 19.2 million – the EBITDA margin rose by 80 basis points to 4.3%, and the operating margin by 50 basis points to 1.7%. This resulted in an increase in gross profit from PLN 1.1 million a year ago to PLN 4.1 million in the previous half-year (+PLN 3 million).
‘Thanks to the improved year-on-year growth recorded in the second quarter, we rate the half-year much better than the first quarter. We are all the more pleased with the growth in operating profit and the margin at this level as we bear the fixed costs of the factory in Wronki while using only part of its production capacity. This demonstrates the scale of our cost and operational optimisation, and I can assure you that we have not yet said our final word on this matter. We also have a stable balance sheet position, with nearly PLN 112.7 million in cash at the end of June – even after paying out over PLN 15 million in dividends – and our net debt to EBITDA ratio standing at a safe level of 1.42’, says Michał Rakowski, Amica Group’s Vice-President for Finance.
As part of its long-term ‘Back to Profitability’ strategy, unveiled last September, the Amica Group aims to achieve annual sales growth of over 7% from 2030 onwards, with an expected EBITDA margin of 5% in 2027 and 7% from 2030 onwards. The goal is also to increase the RONA (return on net assets) ratio to 14% by 2027 and to exceed 17% from 2030 onwards. The company intends to maintain its net debt-to-EBITDA ratio below 2 and to increase its gross margin on product sales to 25% by 2027 and to 28% from 2030 onwards.
According to its new strategy, Amica aims to offer durable and reliable household appliances with top-quality service to make consumers’ everyday lives easier, and to respect 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, and plans to drive sales growth in individual geographical markets through sales and marketing strategies tailored to specific regions. Amica has developed a product and post-purchase experience strategy to significantly enhance its standing among European consumers, and has also identified the product, operational, and financial factors through which it intends to become the preferred B2B partner.
The company places emphasis on quality in the broadest sense, consumer satisfaction and production efficiency, assuming that production volumes at the heating equipment factory in Wronki are to increase by approximately 65% compared with the level in autumn 2024. Issues relating to HR and organisational culture, such as engagement, support, and attracting and developing talent, also represent a strategic pillar.
The Amica Group also implements its ESG strategy, ‘Action for Climate’, which was unveiled in December 2022 and sets out social and governance targets for 2025 and 2030, as well as environmental targets for 2040 and 2050. In January 2024, Amica improved production efficiency by commissioning a combined heat and power (CHP) system (simultaneous production of heat and electricity). Amica Energia, a special purpose vehicle registered in April last year, is primarily focused on developing photovoltaic systems. Over the next two years, the company intends to secure land by way of lease and obtain the necessary administrative approvals for a solar farm with a capacity of at least 30MWp. Thanks to these measures, Amica already meets part of its own electricity demand.