Salaries as a % of sales account for virtually all of the difference in margins. In late 2016 they enacted a new personnel policy. Whilst i don't know the exact details of said policy they do say:
"Changes in the personnel policy As part of the development of the personnel policy, the company also focuses on building its own HR resource, which is aimed at improving the recruitment process and the development of the company's employees. Motivation systems for the managerial staff are also changing, ensuring a greater link between employees' remuneration and the Company's results."
I should note that the board wages actually went down following that, so it's passing onto middle-lower employees. Board gets paid a similar monetary amount now as they did in 2016.
Interesting one! Do you know why the operating margins have decreased from over 25% in 2016 to only 6.7% in the LTM?
Salaries as a % of sales account for virtually all of the difference in margins. In late 2016 they enacted a new personnel policy. Whilst i don't know the exact details of said policy they do say:
"Changes in the personnel policy As part of the development of the personnel policy, the company also focuses on building its own HR resource, which is aimed at improving the recruitment process and the development of the company's employees. Motivation systems for the managerial staff are also changing, ensuring a greater link between employees' remuneration and the Company's results."
I should note that the board wages actually went down following that, so it's passing onto middle-lower employees. Board gets paid a similar monetary amount now as they did in 2016.
Thanks, i‘ve put that name on my list an will probably take a deeper look. Thanks for surfacing 🙌🏻
Hello! How did you find the annual reports of Euro-tax? Their website is not updated and I can´t find them. Thank you!
Go to the exchange (new connect) website to see filings
https://newconnect.pl/spolka?isin=PLEURTX00012
Thanks so much for this write up, definitely taking a look.