Papoutsanis: Strong growth in the first three quarters of 2022 with a 39% increase in turnover

05-10-2022

 

 

PRESS RELEASE

5 October 2022

  

 

Papoutsanis: Strong growth in the first three quarters of 2022 with a 39% increase in turnover

 

  • Sales went up to €53.0 million in the first three quarters of 2022 from €38.2 million in the same period in 2021.
  • There was a significant increase in the value of exports amounting to €34.9 million, compared to €22.5 million last year, making up 66% of the total turnover and registering a 55% growth over the first three quarters of 2021.

 

Papoutsanis S.A., one of the largest soap manufacturers in Europe, has announced a strong growth in the first three quarters of 2022.

 

Specifically, turnover was up 39%, with sales coming in at €53.0 million, compared to €38.2 million in the same period in 2021. This significant increase in turnover was due to the recovery of the hotel market in Greece and abroad, and the increase in sales of specialty soap bases and third-party manufacturing in Greece and abroad, combined with an increase in selling prices (mainly for the last two categories), aimed at passing on cost increases to the greatest extent possible.

 

The value of exports for Papoutsanis in the current period amounted to €34.9 million, compared to €22.5 million in the first three quarters of 2021, making up 66% of the total turnover and registering a growth of 55%.

 

In looking at how each of the four business segments contributed to overall results, it is noted that 16% of total revenues originated from sales of Papoutsanis branded products in Greece and abroad, 23% from sales to the hotel market, 41% from product manufacturing for third parties, and 20% from industrial sales of specialty soap bases.

 

It should be noted that the above figures for Papoutsanis do not include the corresponding figures of its 100% subsidiary G. Malikoutis S.A. (Arkadi Soap Factory), which was acquired by Papoutsanis on 31.8.2022.

 

 

 

Overview by Business Segment

 

Branded products: This segment presented a marginal drop of 3% compared to the first three quarters of 2021 due to the decline in the overall retail market and mainly hand sanitizers. It is worth noting that in the period of January-August 2022, the product categories in which Papoutsanis operates presented an overall drop in terms of value by 6.1% compared to the same period in 2021, with the highest losses being recorded in antiseptic products (-33.3%).  Excluding hand sanitizers and other antiseptic products, the sales value of Papoutsanis branded products rose by 12.5%, presenting faster growth within the market and consequently gaining a significant market share.

 

Hotel amenities: There was a significant rise in sales by 195% compared to 2021. During the same period last year, this segment brought in very low numbers due to the effects of the pandemic. This year sales in this segment are up in Greece and abroad thanks to the expansion of partnerships that had already been closed in 2019. Their implementation began in the last quarter of 2021, upon the recovery of the hotel market. 

 

Third party manufacturing (industrial sales, private label products): Sales were up by 12% compared to 2021. This increase was due to further strengthening of partnerships with multinationals for the manufacturing of their products, enhanced customer base and ongoing expansion of the product range offered by Papoutsanis. 

 

Industrial sales of soap bases: This segment increased by 74% in 2022, mainly due to exports. This growth is the result of the Company’s established position as one of the key suppliers of specialty soap bases on the international market, its expanded customer base and continued efforts to further enhance the product range offered. It is worth mentioning that a new soap base production facility became operational in H2 2021, thus doubling the Company's production capacity in this line of products. At the same time, the launch of synthetic soap bases, which are highly specialised and environmentally friendly products, is expected to further boost this segment. 

 

Mr. Menelaos Tassopoulos, CEO of Papoutsanis SA, said: “In the first three quarters of 2022, Papoutsanis achieved a double-digit rise in turnover compared to 2021. Despite the ongoing challenges in the macroeconomic and geopolitical environment, we remain steadfast in the implementation of our strategy with the aim of achieving strong and sustainable growth.  To this end, the recent acquisition of G. Malikoutis S.A., trading as ARKADI, will facilitate our entry into new product categories.”