Plastic bottles witness the increases

By Giorgos Lampiris

The key signs of the inflationary period we are going through as well as the jump in packaging costs in the last one year are captured by Resilux, which is one of the largest suppliers of PET plastic preforms in Europe as well as plastic bottle and a key supplier of large industries in Greece in the field of bottling, such as the multinational Nestle and the Korpi water it produces itself. In fact, the Belgian company operates with an industrial facility in Greece, specifically in the Industrial Area of ​​Patras, in which PET preforms are produced, which are essentially the basic element for the production of plastic bottles. PET (polyethylene terephthalate) bottles are used in the food industry and are suitable for water, soft drinks, olive oil, milk, juices, beer and also for non-food items such as detergents. In any case, the price of PET plastic depends on the fluctuation of oil prices, which it has as a raw material.

Increase in turnover and decrease in profit due to energy and raw material appreciation

Highly indicative of the impact the packaging industry is having on the entire supply chain and on food costs, is the fact that Resilux saw its turnover in 2021 increase to €45.38m from €35.35m in 2020 (+28%), which is due to the increase in prices of raw materials. At the same time, however, its net profit before taxes shrank significantly by 43%, due to the increase in energy costs by 1.3 million euros compared to 2020. The profit before taxes from 3.1 million euros in 2020, decreased to 1.76 million euros in 2021.

At the same time, however, despite Resolux’s 28% growth in turnover in 2021, gross profit margin increased by just 4%, given the margin squeeze that came from the broader industry and supply chain picture.

Bottled water sales in volume decreased

A typical example of the data prevailing in the market, is the fact that bottled water in the Greek market, both in supermarkets and in catering – hotels, has an increased turnover as a result of the price increases. However, as far as the volume of sales in pieces is concerned, this year it is reduced, as typically reported by executives from this particular market. This fact results from the cost increase in PET plastic but also from the increase in energy costs and transport costs, which skyrocketed due to the increased demand during the summer season.

Aster Caps: Forecasts for Further Financial Impacts in 2022

Corresponding effects are seen from its side by the metal cap production company, Astir, which now belongs to the Ideal group from 2021, also being a key supplier to large industries such as the Athens Brewery that bottles Heineken and Amstel beers, as well as Coca-Cola Hellenic. In particular, Astir, through its financial statements for 2021, points out that further growth trends are expected for 2022, corresponding to the previous year, as a result of the energy crisis, inflation and the ongoing disruption in the supply chain, with a simultaneous reduction of profit margins. Despite the prevailing conditions, Astir managed to increase its figures during 2021, taking advantage of the inability of its competitors to supply corresponding products, while it itself had the ability to cover the increased demand presented due to this condition.