Papoutsanis: 26% increase in profits after taxes in 2021 – At 54.8 million sales

Papoutsanis SA records strong growth for 2021, presenting a significant increase in results and an increase in sales in all areas of activity.

For the 6th consecutive year, the consolidated turnover records a significant increase and amounts to 54.8 million euros compared to 40.8 million euros in 2020 attributed to the high performance achieved by Papoutsanis in all categories in which it operates.

In addition, the company continues to show improved profitability. Consolidated earnings before taxes amounted to 6.1 million euros, compared to 5.3 million euros in 2020, while earnings after taxes amounted to 4.9 million euros compared to 3.9 million euros in 2020.

21% of the total income comes from sales of Papoutsani branded products in Greece and abroad, 13% from sales in the hotel market, 49% from productions of products for third parties and 17% from industrial sales of soap masses.

It is noted that Papoutsanis from the beginning of 2021 directly serves the large retail chains. This development brought about a corresponding change in the way of pricing, resulting in an increase in the published turnover by 2.1 million euros compared to 2020 and an equal increase in selling expenses. Had this change not taken place, turnover would have been € 52.6 million and disposal costs € 5.2 million.

Overview by Sector of Activity

In relation to the previous year, the turnover moved, by product category, as follows:

Branded Products: There was a 12% increase in sales in 2021 compared to 2020, a year in which this category had benefited significantly from increased sales of antiseptics, as a result of the COVID-19 pandemic. In 2021, the position of branded products (Karavaki, Natura, Aromatics, etc.) in the large retail chains was strengthened while at the same time a significant growth of the market share. Specifically, Papoutsanis remained first in consumer preference in the category of solid soap and antiseptic / disinfectant while at the same time it developed dynamically in cream soap, claiming the second place. Finally, Papoutsanis significantly strengthened its presence in major categories, such as that of the shower gel, launching new, modern series and proposals.

Hotel Products: There was an increase in sales by 126% compared to 2020. This category was strengthened by the partial recovery of the hotel market in Greece and abroad in 2021. Especially in the last quarter, exports were significantly increased due to the start of implementation of new agreements with international chains, agreements that had been concluded since 2019 but, due to the pandemic, were delayed.

Third party products (industrial sales, private label): There was a 24% increase in sales compared to 2020. The increase came from the significant further strengthening of collaborations with multinational companies for the production of their products, the development of the clientele and the continuous expansion of the range products offered by Papoutsanis.

Industrial sales of soap masses: There was an increase of 62% in 2021 in this category, which mainly concerns exports. The growth is due to the consolidation of Papoutsani as one of the main suppliers of special soap masses in the international market, to the expansion of the clientele as well as to the continuous strengthening of the offered range of products. At the same time, the launch of synthetic soap masses, which are innovative products with a very positive environmental footprint and increased added value, is estimated to further strengthen the category.

Business perspective

In the last five years, Papoutsanis has tripled its turnover, having made significant investments in all four categories in which it operates. In this context, the Papoutsani factory is today one of the largest vertically integrated production units of soaps and hotel cosmetics in Europe with a very high level of automation and respectively competitive costs.

Until recent geopolitical developments, it was considered that 2022 would be a very good year for tourism, both in Greece and abroad, given the ever-decreasing effects of the pandemic which is coming to an end. On the contrary, since mid-2021, the great discontinuity caused by the latter in primary and secondary production, the availability of labor, transport and logistics in general, has resulted in the level of material prices constantly increasing in relation to in 2020. A trend that is unfortunately intensifying even more after the latest developments in the wider region of Ukraine, with the price of energy also soaring to historic highs. At present, it is practically impossible to assess the outcome of broader geopolitical developments and therefore the final impact on the economy as a whole. The Papoutsani Administration closely monitors the developments and acts accordingly.

Assuming that the general geopolitical situation will not be further aggravated, it is expected, in 2022, to achieve a satisfactory growth rate comparable to that of recent years.

More specifically:

The branded product category is expected to be strengthened through the enrichment of the product range, the entry into new categories, the strengthening of the presence in the stores and the dynamic promotion plan that has been designed for 2022.

The hotel products sector is expected to return to at least 2019 levels, as the effects of the pandemic have been significantly reduced.

Production of products for third parties, mainly multinational companies, is expected to develop further, as the collaborations in new products and with new customers are expanded.

Finally, the category of soap operators is expected to continue to grow through the expansion of existing partnerships and the achievement of new ones. Synthetic soap masses also help in this direction, as well as Papoutsani’s ability to cover the needs of the European market in more basic soap masses that due to high transport, long delays and other restrictions can not be covered by Malaysia and Indonesia.

At the same time, Papoutsanis has implemented most of the investment plan with the aim of increasing productivity, producing new innovative products and expanding storage facilities, actions that will help reduce operating costs.

For 2022, the Management of Papoutsani intends to propose to the Ordinary General Meeting of Shareholders the distribution of a gross dividend of € 0.05 per share. If conditions allow, he may propose an additional dividend in 2022.

Mr. Menelaos Tasopoulos, CEO of Papoutsani SA, commented:

“Papoutsanis maintained its growth course during 2021 despite the continuing effects of the COVID-19 pandemic. The strong performance in operating sizes reflects the success of our investment plan, the continuous improvement in all four areas of activity, as well as the high competitiveness of our products in the Greek and international market.

For 2022, we expected to reduce the impact of the pandemic and boost tourism worldwide. However, the consequences of recent geopolitical developments and upheavals in the supply chain and the cost of raw materials and energy are extremely difficult to assess. Papoutsanis will continue to invest in innovation, sustainability and quality, to expand its product offerings – branded and hotel – and to strengthen its international collaborations, in order to maintain a satisfactory growth rate similar to that of the last five years and to chart a strong course in 2022 “.