Papoutsanis: Announcement of turnover for the first half of 2024
PRESS RELEASE
8 July 2024
Papoutsanis: Announcement of turnover for the first half of 2024
Papoutsanis SA, the leading Greek soap and liquid cosmetics industry in Greece and the largest producer of solid soaps in Europe, announces its turnover for the first half of 2024.
Specifically, turnover amounted to €31.7 million (compared to €32.2 million in the corresponding period of 2023), noting a slight decrease of 1.4%, with the value of exports representing 53% of the total turnover.
For the entire year, an increase in turnover is estimated compared to 2023, as the new partnerships that are already being implemented will be in full progress in the second half of 2024.
The completion of the strong investment plan has created the necessary free capacity (approximately 50% on average), setting the right conditions for new partnerships. The Company is currently in negotiations with large multinationals and smaller companies for new projects that will further enhance turnover and profitability.
In terms of profitability for the first half of 2024, Management expects improved financial results compared to 2023 thanks to a series of actions aimed primarily at improving gross profitability.
Overview by Activity Sector
Branded Products: The category shows strong growth of 19% compared to the first half of 2023, largely due to the brand ARKADI, with its entry into the new categories of laundry care and dishwashing liquids, which presents a sales increase of 73%. Excluding ARKADI, sales of PAPOUTSANIS branded personal care products show a 7% increase in Greece compared to the first half of 2023, steadily gaining share in value in a market that moves at lower growth rates (+3% in value for the five months January-May 2024 compared to the same period last year based on market data for organized retail in the categories in which PAPOUTSANIS operates). Moreover, exports of Papoutsanis branded products grew dynamically in the first half of the year, recording a 34% growth compared to the same period in 2023.
The pillar of Papoutsanis branded products is a strategic priority and is expected to be further strengthened in 2024, through the enrichment of the product range, dynamic advertising support and the strengthening of our presence in stores.
Hotel Products: Sales of hotel products declined by 17% in the first half of 2024 due to third-party hotel product sales abroad, which, although remaining at satisfactory levels, lagged behind in relation to the same period last year due to one-off deliveries in early 2023.
Sales of PAPOUTSANIS branded hotel products showed growth, with sales increasing by 4.5%. This growth was driven by exports, which nearly doubled in the first half of 2024 (+87%) compared to the same period last year, creating strong foundations for dynamic growth and strengthening the presence of Papoutsanis brands abroad.
Third party products (industrial sales, private label): sales in this category decreased by 10%, a trend driven by foreign markets and expected to be reversed by the end of the year. Sales in this category are expected to strengthen in the second half of the year, due to the full development of a new partnership with a major multinational company.
Industrial sales of soap bases: Sales of this category increased by 9% compared to the first half of 2023. The Company's goal remains to continuously expand its customer base and further develop its synthetic soap bases.