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Sarantis: Growth of net profits by 4.1% in 2021 – The Board of Directors will propose a dividend distribution of € 0.143 / share

In the year 2021, the Sarantis Group continued to show growth in sales, despite the high comparable base of last year and the balance in consumption, and recorded an increase of 4.1% in its net profitability, amid adverse conditions created by inflation pressures on the business environment.

According to a relevant announcement of the company, the consolidated sales of the Group in the year 2021 amounted to € 408.20 million from € 393.38 million in the year 2020, showing a significant increase of 3.77%, given the high comparable base last year. and balanced consumer demand.

During 2021 and throughout its geographical area, the development of the Group was fueled by the strategic product categories of the Group, and in particular they are related to skin care, body cleansing, deodorants, sunscreens, home care and nutritional supplements, as well as cosmetics of selective distribution.

Sales in Greece amounted to € 142.78 million in the year 2021 from € 136.05 million last year, showing an increase of 4.95%, with the wide distribution market leading the increase, despite the downward trend that shows the market in the categories of the Group, and the Selective Distribution Cosmetics show an increase due to the reopening of the specific channel and the increased consumption in it. Foreign countries, which represent 65.02% of the Group’s total sales, increased by 3.14% to € 265.42 million in 2021 from € 257.33 million in 2020. Excluding the monetary effect, to neutral monetary base, foreign sales increased by 4.9%.

The Group’s profitability in 2021 was greatly affected by rising inflationary pressures, mainly due to higher commodity prices and transportation costs. Balanced operating costs and controlled advertising and promotion expenditures focused on specific strategic categories and initiatives have partly offset the effects of inflationary pressures.

Specifically:

Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) decreased by 4.71% to € 59.69 million in the year 2021 from € 62.64 million in the year 2020 and the EBITDA margin stood at 14.62% in year 2021 from 15.92% last year.

Earnings Before Tax and Interest (EBIT) amounted to € 46.82 million during FY ’21 from € 50.00 million in FY’20, reduced by 6.36% and the EBIT margin amounted to 11.47 % from 12.71% last year.

– Profit Before Tax (EBT) reached € 49.57 million in 2021 from € 47.43 million last year, increased by 4.59%, and the EBT margin rose to 12.14% from 12, 05% last year.

– Net Profit amounted to € 40.29 million in FY ’21 from € 38.70 million last year, increased by 4.12%, and the Net Profit Margin amounted to 9.87% from 9.84% the FY ’20

The Group presents a particularly healthy financial position, supported by the profitability of the company, the balanced management of capital expenditures and the effective management of working capital.

The Group’s net debt at the end of 2021 amounts to € 5.96 million (net debt to EBITDA at 0.1x) from € 10.91 million in 2020. In addition, thanks to improved inventory management and optimization of the product portfolio , the Group managed to improve its working capital in terms of sales to 30.15% in FY ’21 from 34.25% last year, thus further supporting the creation of net cash flows of the Group.

Despite the challenges posed by the COVID-19 pandemic, ongoing disruptions in global supply chains and inflationary pressures, the Group, committed to its strategy, invests its free cash flows in initiatives aimed at either accelerating growth or either through acquisitions, as well as in creating added value for its shareholders.

During 2021, the Saranti Group paid a dividend for the year 2020 amounting to 15 million euros (0.22393 euros per share), increased by 34% compared to the previous year’s dividend.

For the year 2021, the Board of Directors of the company will propose during the Annual Ordinary General Meeting of 2022 the distribution of a dividend of 0.143108 Euros per share, which corresponds to an amount of € 10 million.

In addition, within 2021, with the aim of further upgrading the production line and increasing efficiency, the Group completed its investments related to the expansion of its production capacity and the purchase of automated mechanical equipment at its production unit in Inofyta. At the same time, the investments related to the construction of the new plant of Polipak continued, while their completion is expected by the end of the first half of 2022. The new production unit of Polipak will lead to the creation of new high-tech products, improved in terms of ecological profile. , durability and functionality. The new plant will use automated production processes that will lead to higher production capacity and increased efficiency.

As part of its strategy for further organic growth of sales and profits, the Group focuses on optimizing the Group’s product portfolio, utilizing the strong recognition of its brands in its strategic product categories. Investments in support actions and innovations at the level of product development will be made available with an emphasis on targeted strategic initiatives, in order to lead to further value creation.

In addition, investments related to infrastructure, systems and processes have been activated in order to further increase the efficiency and effectiveness of the Group.

Throughout 2021, the Group remained committed to implementing its value-added strategy through acquisitions. Following the completion of the thorough due diligence process in 2021, it entered into an agreement on 2 March 2022 for the acquisition of the Polish consumer goods company STELLA PACK SA STELLA PACK holds a leading position in the production and distribution of household goods for 25 years successful presence in the categories of food packaging, garbage bags and cleaning tools, recording annual sales amounting to approximately 65 million euros. STELLA PACK’s contribution to the circular economy will strengthen the Group’s efforts towards sustainable production, as it operates only with recycled plastic and has a waste separation line that manufactures its own recycled plastic, fully covering its production needs.

You can see in detail the Consolidated financial results for the year 2021 of Saranti in the relevant attached file in the right column “Related Archives”.

Source: Capital

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