Papoutsanis pre-tax profits increased by 46% to 1.1 million euros in the first quarter of 2022, while turnover amounted to 14.9 million euros, an increase of 45% compared to the first quarter of 2021. Profits after taxes amounted to 0.8 million euros compared to 0.5 million euros in the corresponding period of 2021, showing an improvement of 40%. Exports increased by 83% to 11.1 million euros, representing 74% of total turnover.
Overview of results
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 soaps in the international market and the strengthening of the production for third parties.
According to the announcement of the listed company, the gross profit, positively affected by the sales growth by 45% and the reduction of the production costs, as a consequence of the investments implemented by Papoutsanis, amounted to 4.2 million euros against 3.0 million in 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 to 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.
Overview by Sector of Activity
Branded Products: 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 noted 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 drop that comes from the reduction of consumer demand, while at the same time looking forward to a dynamic 2nd quarter, with the relaunch of an emblematic brand and 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 further strengthening of collaborations with multinational companies for the production of their products, the development of the clientele and the continuous expansion of the product range. 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 is pointed out that since 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.
In the first quarter of 2022, despite the ever-deteriorating international business environment due to cost and availability of raw materials in terms of packaging materials, energy and transportation costs, ongoing problems due to COVID and the war in Ukraine, the company experienced strong growth and further improved its financial 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.
Mr. Menelaos Tasopoulos, CEO 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 sustainable development.
“The recovery in the hotel market in Greece and internationally, the new product launches of Papoutsanis, 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 about the evolution of the company’s performance for the rest of the year, without underestimating the risks posed by the current, extremely fluid environment. “