Sarantis: ‘Keep’ the prices of cosmetics, increase in household items

By George Lampiris

Sales for the Sarantis group are on the rise, with 4% in the quarter, as reported by the group’s Deputy CEO and CFO, Costas Rozakeas, in the context of informing the analysts.

At the same time, inflationary pressures continue to have a stronger impact on home care products, mainly due to rising prices for raw materials such as aluminum and plastic. Together with the transport, the cost increase amounts to 15% in the category, which affects the final price by 10% as the participation of raw materials in the cost amounts to 80%, while the remaining 20% ​​comes from labor costs and depreciation.

The increases in cosmetics are negligible

In the cosmetics sector, the increases in costs are significantly smaller, with price increases at end points reaching around 2%, as their composition is mainly based on chemicals where there is no serious price range.

As mentioned on the issue of cost burden and price increases in the context of informing analysts, increases were already made in 2021 by the group, to cope with the increased costs. In fact, the increases are expected to continue in 2022 with new moves in order to ensure the group on its margin in profit before interest and taxes at levels similar to 2021, which was of the order of 11.5% on a consolidated basis.

Delays of up to 30 days in feeding

Regarding the supply of the group with products, there are delays which reach about 30 days. The group had made an effort to reduce inventories by 2021, but is now creating new inventories in order to prevent disruption of the supply chain and the possibility of shortages.

The Ergopack subsidiary in Ukraine is fully operational

At the same time, in Ukraine, where the group had ceased operations through its subsidiary Ergopack following the outbreak of war, it was reported that operations in Ukraine had been suspended at the end of February, with warehouses closed due to the presence of Russian troops in the Kaniv area. . The warehouses and the Ergopack factory were put back into operation after the withdrawal of the troops and the group continued its activities in Ukraine. It is noted that Ergopack treats plastic waste and produces recycled plastic granule that is used to produce garbage bags.

In terms of Ergopack’s activity in Ukraine at the moment – as it also maintains export activity – it has the products it produces in the western part of the country, which had a population of about 20 million euros, which has gradually increased due to population movement in the midst of war, to a population of 30 million.

Polipak’s investment in Romania completed – Transfer to new facility pending

At the same time, the investment plan of the company listed in Romania was completed. The project concerns the subsidiary Polipak, with the investment amounting to a total of 25 million euros. The move to the new factory will be made within the summer based on existing planning.

Polipak’s new product line 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.