Papoutsanis: 45% increase in turnover in the first quarter – ‘Jump’ 83% in exports

Papoutsani’s turnover increased by 45% in the first quarter of 2022 and amounted to 14.9 million euros compared to 10.3 million euros compared to the corresponding quarter of 2021.

The significant increase in turnover is attributed to the partial restart of the hotel market in Greece and abroad, the doubling of sales of special soap masses in the international market and the strengthening of the production of products for third parties.

According to the results announced by the company, its exports amounted to 11.1 million euros, representing 74% of the total turnover, showing a strong growth of 83% compared to the same period last year.

The gross profit, positively affected by the growth of sales by 45% and the reduction of production costs, as a result of the investments implemented by Papoutsanis, amounted to 4.2 million euros compared to 3.0 million in the corresponding period of 2021, improved by 42%. The gross profit margin decreased slightly and amounted to 28.2% compared to 28.7% in the first quarter of 2021, mainly affected by the increase in raw material and energy costs.

Earnings before taxes, financial, investment results and depreciation (EBITDA) amounted to 1.6 million euros compared to 1.2 million euros in the first quarter of 2021, an increase of 35%.

Earnings before taxes, financial, investment, extraordinary non-recurring results and depreciation (adjusted EBITDA) amounted to 2.0 million euros compared to 1.2 million euros in the first quarter of 2021, showing an improvement of 66%.

Profit before taxes amounted to 1.1 million euros, compared to 0.7 million euros in the quarter of 2021, while profits after taxes amounted to 0.8 million euros compared to 0.5 million euros in the corresponding period. 2021, showing an improvement of 40%.

It is noted that the results of the quarter have been burdened with non-recurring, extraordinary loss, as it arose after the issuance of the arbitral award regarding the termination of cooperation with the company Elgeka SA, which until the end of 2020 distributed the branded products of the company in the big chains. The Company had already made relevant forecasts during the previous financial years. The amount charged in the current period amounts to 384 thousand euros without further charges being expected.

Mr. Menelaos TasopoulosCEO of Papoutsani SA, commented:

“During the first quarter of 2022, we achieved very good financial results and increased performance. Despite the ongoing challenges at the international level, we continue to implement our business strategy always aiming at continuous and stable growth.

The recovery in the hotel market in Greece and internationally, the new product launches of Papoutsani, the strengthening of existing partnerships and new partnerships with multinational customers, as well as the development of new products in the category of soap masses support this effort. That is why, after a strong first quarter, there is moderate optimism for the evolution of the company’s performance for the rest of the year, without of course underestimating the risks posed by the current, extremely fluid environment “.

Overview by sector of activity

Branded goods: The category shows a marginal decrease of 3% compared to a high first quarter of 2021, when the Company started to directly serve the large retail chains, but mainly due to the significant downward trend of the overall retail market compared to the same period last year. It is worth noting that in the first two months of 2022, the markets in which Papoutsanis operates fell by 8%, while the forecast for March is negative. Papoutsanis has significantly increased its share in these categories, covering almost the entire fall that comes from the reduction of consumer demand, while at the same time looking forward to a potential 2^The quarter, with the relaunch of an emblematic brand and the entry into new categories and innovative products with a positive environmental sign.

Hotel Products: Significant increase in sales by 570% compared to 2021. This category in the corresponding period last year moved to very low levels due to the pandemic while this year the relevant sales are strengthening in Greece and abroad.

Third party products (industrial sales, private label): Increase in sales by 14% compared to 2021. 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 of products offered by Papoutsanis.

Industrial sales of soap masses: There was an increase of 106% in 2022 in this category, which mainly concerns exports. The growth is due to the consolidation of the company 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. It should be noted here that from the second half of 2021 the new soap production unit has been put into operation, doubling the company’s production capacity in these products, while the distribution of synthetic soap masses used in natural products with improved ecological footprint has already begun.

Business perspective

In the first quarter of 2022, despite the ever-deteriorating international business environment due to costs and availability of raw materials and packaging materials, energy and transportation costs, ongoing problems due to COVID and the war in Ukraine, the company recorded strong growth and further improved financial of performance.

The company will continue to make concerted efforts to deal with the constantly and unexpectedly changing economic environment and to serve its customers inside and outside the country in the best possible way, while implementing its overall development strategy in order to achieve double digits this year as well. growth with healthy profitability.