Papoutsanis: Turnover announced for first half of 2023
PRESS RELEASE
10 July 2023
Papoutsanis: Turnover announced for first half of 2023
Significant increase in the Branded Products category
Papoutsanis SA, leading Greek soap and liquid cosmetics company in Greece and one of the largest manufacturers in Europe, has announced its turnover results for the first six months of 2023.
Specifically, turnover was down 4%, with sales coming in at €32.2 million, compared to €33.6 million for the same period in 2022.
The value of exports for Papoutsanis in the current period amounted to €18.0 million, compared to €22.2 million in the first half of 2022, down 18% and representing 56% of total turnover.
Regarding the contribution of the four activity sectors to total figures, it should be noted that 24% of total revenue comes from sales of Papoutsanis branded products in Greece and abroad, 21% from sales in the hotel market, 39% from third-party product production, and 16% from industrial sales of specialty soap bases.
Overview by activity sector
Branded products: The category reported strong growth of 51% compared to the first six months of 2022, despite the significant decline in the antiseptic market in the organised retail trade sector (-56% for the four-month period January-April 2023 compared to the same period last year). Excluding antiseptics, the branded products category grew by 76%; around half of this was due to the positive contribution made by acquisition of the ARKADI soap factory, while the rest comes from organic growth of Papoutsanis' mass distribution products. PAPOUTSANIS personal care products are gaining a significant market share in Greece and at the same time have more than doubled their sales abroad, with excellent prospects for further growth.
Hotel amenities: Sales of hotel amenities grew by 1% relative to the sales in the first half of 2022, with domestic sales rising by 35% compared to last year and making up for some of the drop in sales abroad; these figures are compared to a very strong first half of 2022 with the re-opening of business travel and the tourism market after two years of pandemic-related lockdowns.
Third-party products (industrial sales, private label): Sales in this category were down 15%, a trend driven by foreign sales. In foreign markets, and mainly those in Europe, product sales prices showed signs of stabilisation, though at high price levels. This led multinational companies and other customers to re-evaluate their strategy and their product portfolio and in some cases to eliminate product codes they sell. In the short term, these signs point to a decrease in demand. Meanwhile, the Company is in discussions to form new partnerships, which, if completed successfully, will have a significantly positive impact on this product category.
Similarly, there are opportunities for growth through new partnerships outside the European Union, despite strong competition.
Industrial sales of soap bases: In the first half of 2023, there was a 27% drop in this category (which primarily relates to foreign customers), mainly due to non-sale of the commodity soap bases manufactured in SE Asia. In 2022, by exploiting increased transport costs and long delays in deliveries from Asia, Papoutsanis was able to meet part of the overall demand in Europe, Africa and the Middle East for similar soap bases. Transport costs and delivery times from Asia have now returned to normal, but the fact that Papoutsanis was able to meet specific needs has left it with partnerships that will only serve to bolster this category going forward.
Mr Menelaos Tassopoulos, Managing Director of Papoutsanis SA, commented: “We continue to invest in new, qualitative and special-purpose products and on our export activity, and are moving forward with our growth plan, despite the challenges, to enhance our positive prospects in all four sectors of the Company’s activities. Meanwhile, having essentially completed the extensive investment programme of the last three years, we are positioned to investigate and pursue new major projects with a great potential for success.”