A big recovery in the tourism market, expansion of cooperation in the production of products for third parties, the consolidation of “Paputsani” in international markets as a key manufacturer of bar soap, as well as the entry into new categories of branded products. following the company’s continued upward trajectory and a difficult first half of 2022 for the economy. Of course, rising energy costs have led to a decrease in the company’s profitability, while the consequences of an increase in the cost of raw materials due to the search for alternative suppliers are less. However, Paputsanis is also announcing a new round of price increases for the second half of the year, price increases that result in an additional 4%-5% average increase.

In particular, according to the financial results announced yesterday by the listed company, its turnover in the first half of the year amounted to 33.6 million euros, compared with 24.2 million euros in the first half of 2021, recording an increase of 39%. The increase is attributable to the company itself, with a 22% increase in sales volume and a 17% increase in prices. The latter was done for reasons of shifting production costs, with the company choosing to shift these mainly to the selling prices of bar soap and to the prices of products it manufactures on behalf of third parties.

Exports amounted to 22.2 million euros in the first half of 2022, representing 66% of the total turnover and an increase of 54% compared to the corresponding period last year.

The company’s operating income was €4.9 million, up 22% on the first half of 2021, pre-tax profit was €3.3 million, and after-tax profit was the same as in 2021, before 2.5 million euros. It is worth noting that the company only paid for electricity costs by an additional €1 million compared to the corresponding period in 2021, which significantly contributed to the decline in the gross margin to 29.3% against 33.2% in the first half of last year.

“Due to increased competition in the industry, any increase in global and domestic prices for raw materials is not in all cases transferred to the final price of products, which entails the risk of a negative impact on the company’s performance,” says Paputsanis in its semi-annual financial report, adding : “For this purpose, the company annually seeks and finally uses those suppliers that provide the best price, zeroing out the risk of dependence. To compensate for this risk, derivatives are not used, but medium-term contracts are entered into when it is considered profitable. The good news is that, according to Paputsanis, oil prices have now begun to decline from their historical highs in the first half of the year, while prices for raw materials for plastics are showing some stabilization, which, if it continues, will lead to improvement. in the situation by the end of the year and especially during 2023.