Stable growth in a complex market situation

Despite the many unfavorable market conditions and challenges faced by the entire meat industry, Sokolow maintained stable growth in 2023. It is confirmed by, among other things, the achieved growth in sales revenue, as well as a significant level of investment. In addition to achieving its business goals, the company continued to implement its extensive social responsibility strategy, both in terms of sustainable food production and the promotion of healthy lifestyles.

Market challenges in 2023
High inflation and rising raw material and production costs are challenges that have significantly conditioned the operations of all businesses over the past year. - Although the current economic situation shows some stabilization, we are still operating in an extremely complex environment,- says Przemysław Gostkiewicz, CEO of Sokołów S.A.. - In addition, in the meat industry we have been facing the ASF epidemic and difficulties in the raw material market for several years now. Unfortunately, more and more smaller farms are going out of business. Taking all these factors into account, maintaining the company's stable growth should, in my opinion, be considered an undoubted  success.

Investments, sales value growth, strong brand
For the Sokołów Group, the last fiscal year was full of important events in terms of business development. The launch of the new company Sokołów-Net, created through the merger of the Sokołów and Gzella store chains, allowed the creation of Poland's largest chain of specialty meat stores, with more than 300 locations throughout the country. This has enabled the company to systematically develop retail sales through its own store network. 
Last year, Sokołów allocated 239 620 920 PLN for investments. These made it possible to further strengthen the Sokołów Group's production potential. A vege department was launched at the Kolo plant, which produces a wide range of plant-based Z Gruntu Good. Modernization of the Robakowo plant was also carried out, which included expansion of the pork division and automation of the production process. 
An important event for the company was the change in the position of CEO. Boguslaw Miszczuk, who retired after 22 years in this position, was replaced by Przemyslaw Gostkiewicz - an experienced leader in the world of trade, with extensive professional experience covering both domestic and international markets.
In the past year, a key objective for the Sokołów Group was stable growth in the company's most important areas. - Our achievements are confirmed by specific data, such as a 9.4% increase in sales revenue - says Przemysław Gostkiewicz, Sokołów S.A. CEO. - Among other things, we recorded a dynamic growth in sales of Sokoliki brand products, aimed at the youngest consumers. We have successfully expanded the distribution channels of this line and introduced interesting new products. Today, in the category of branded meat snacks for children, the sales share of Sokoliki products by weight is as high as 76%. We are also intensively developing sales of sliced products, and our results in this category are breaking new records year after year. Last year, we achieved a sales dynamics of 129% in this group of assortments, and what is important - we still see huge development potential here. Another category worth mentioning is seasoned meats, which, thanks to storage for several weeks at a strictly defined temperature and humidity, crisp up and gain great flavor. We offer both seasoned beef and pork, and the number of customers interested in these products is growing year after year, especially in the HoReCa segment, as evidenced by a sales increase of more than 35%.
- I am also proud of the awards we have won in many fields, adds Przemyslaw Gostkiewicz. - For the third time, we took first place in the meat industry in the prestigious Forbes „Top 200 Most Valuable Brands in Poland" ranking. The quality and taste of our products are also recognized in numerous competitions - including those where the deciding vote belongs to experienced and demanding professionals such as chefs. Our long-matured, dry-seasoned beef received the prestigious Chefs Choice Poland award, given as part of the second edition of the competition organized by the Association of Polish Chefs and the Foundation Warto Im Pomóc. 
As in previous years, Sokołów also took care to develop its product range. In the past year, more than 120 new products appeared in the company's offer, including slow-cooked beef and vegetable bouillon, more products from the Sokoliki line for the youngest (Sausages flavored with pizza cheese, sausages with added cheddar cheese, Sokoliki poultry sticks with veal), as well as Kabanero, i.e. thin sausages surrounded by aromatic spices on the outside, which is the first product of its kind on the Polish market.

"Feeding the Future" social responsibility strategy
This was also another year of implementing the "Feeding the Future" strategy of the Danish Crown Group, of which Sokolow is a member. Its premise is actions aimed at reducing the impact on the surrounding environment and combating climate change. - Today, modern technologies can effectively support us in sustainable food production- says Przemyslaw Gostkiewicz. - We systematically implement innovative solutions in our plants, thanks to which we reduce the impact of production on the environment and reduce the consumption of natural resources.

In 2023, photovoltaic installations were built at six Sokol plants, with a total capacity of 450 kWp, which, with an average electricity yield of about 450 MWh per year. The installations provide a reduction in CO2 emissions of about 200 tons per year. This is the first stage of the construction of photovoltaic panels at Sokol Group plants - the next stage is planned to increase the capacity 10-fold to almost 4,500 kWp.
Sokołów S.A.'s CEO emphasizes that pro-environmental activities are not the only area of the company's social responsibility strategy. - Our CSR activities also include, among other things, relations with employees, support for local communities and education and promotion of a healthy lifestyle -says Przemyslaw Gostkiewicz. - We have been working intensively in each of these areas throughout the year.
Sokołów has once again won the title of Solid Employer. - I am extremely pleased with this award, which is given only to the best employers in Poland ¬ emphasizes Przemyslaw Gostkiewicz. - The heart of our company is its employees, so we strive not only to provide them with stable employment on good terms, but also give them many opportunities to expand their knowledge, skills and competencies. We have a clearly defined career path and every year we ambitiously set new goals to achieve. We also support employee development through training opportunities on the internal LMS platform.
The company has also been involved in many local initiatives, including working with the SIEMACHA Association, which is one of Poland's leading local government organizations helping children and young people.
As in previous years, Sokołów has carried out successive educational campaigns on a wholesome diet and promoting a healthy lifestyle. For years, the company has been a partner in the Marcin Gortat Camp initiative, aimed at young basketball enthusiasts. In addition, the second edition of the Sokoliki Cup soccer tournament for children was held in 2023. It was attended by more than 2,000 players,representing 144 teams. Twenty teams qualified for the finals, and it was played at the Legia City Stadium in Warsaw. The event was also attended by Łukasz Fabianski, a great athlete, goalkeeper of the Polish national soccer team and ambassador of Sokolik Academy. During the Mazovian Football Gala, organized by the Mazovian Football Association, the Sokoliki Cup tournament was named Football Event of the Year.
As part of its sustainable development strategy, Sokołów is also implementing activities aimed at promoting the idea of "zero waste." Cooperating for another year with the Too Good To Go application, the company has saved more than 8,000 kg of food from going to waste, which translates into a reduction of CO2 emissions by about 18 tons.

Plans for 2024

President Of The Management Board Przemyslaw Gostkiewicz assures that despite the complex situation and the many challenges facing the company, he plans to continue its stable development. - On our side, we have many assets that we will certainly use - says Przemyslaw Gostkiewicz. - These include a professional staff, well-equipped plants, innovative technologies and strong brands. We will try to take measures to minimize the impact of external factors on the prices of our products. We will continue to optimize the costs of production processes. We also assume the continuation of investments that, on the one hand, increase the efficiency of our plants and, on the other hand, allow us to reduce the consumption of natural resources. Striving for sustainable food production is a necessity today. As a responsible producer, we fully understand this, and it is also expected by conscious consumers. We also plan to further develop our portfolio in line with the latest nutritional trends and current customer needs.