Developing the detergent category from multinational giants and further strengthening its own brands in the retail and hospitality market to reduce dependence on sales to industrial customers are Paputsani’s central goals for the next space. In fact, for the production of detergents, which is a new category for the company, which it entered last year through the acquisition of the historical industry “Arkady”, the management of the listed company is investigating production lines abroad – as the plant in Greece is mainly engaged in the production of cosmetics from soaps, while in addition to its own brands it is expected to manufacture detergents for third parties.

The release of a new series of detergents on the domestic market is scheduled for 2023, and foreign markets will appear in the second stage. Management’s two-year target is a 3%-5% share, a target that is considered quite ambitious given the dominance of the multinational giants in the detergent category. Paputsanis will focus on products that serve the principles of sustainability, products that require the use of less plastic, chemicals and water, such as detergent capsules. Even in cooperation with multinational corporations, products with such characteristics will be used, since the company does not want to turn into a “fashionable” detergent company under any circumstances.

Paputsani’s management sees opportunities in the detergent category, capitalizing on the relationships it has built with consumers in other categories, and relies heavily on the balance between good quality and value for money, and the fact that multinational corporations are at the stage of abandoning investments in marketing and advertising in the Greek market.

Another goal is to increase the share of branded retail products and branded hotel products in the company’s turnover from the current 30% to 50%. “A brand has value. We are not afraid to lose another part of industrial customers. We have reached the point of brand consolidation that we are investing more in it. It used to be the worst part, the part with the least contribution to sales,” said Menelaos Tasopoulos, CEO of Paputsani, during the presentation of the company to the Association of Institutional Investors yesterday.

The company is also committed to further strengthening its brands in the retail and hospitality markets.

Speaking about the prospects for 2023, he estimated that they will be better than for 2022, but the “uncertainty” factor has not gone away. The company expects a 10%-15% increase in sales volume, as well as an improvement in margins, which were squeezed in 2022 due to revaluation. The positive outlook is based on an increase in exports, the expansion of existing partnerships and the creation of new ones, as well as, of course, the expansion of the company in the category of detergents.

In addition, this year the company agreed with its industrial customers for the first quarter of 2023 to share the cost of electricity, which was not done last year. It is worth noting that the additional load of the company in the nine months of 2022 from energy alone amounted to 2 million euros, which is equal to 3% of sales.

In terms of price increases for retail products, the company continued to increase prices by an average of 6.5-7% in 2022, compared to price increases of around 15-20% in which the market operated. During the first quarter of 2023, the company will carry out price increases that retailers can pass on to prices over the next two months, the price increase is mainly due to the increase in raw material prices in 2022.

Finally, an investment of 3 million euros is planned for 2023, with emphasis in the next period on the installation of photovoltaics and new mechanical equipment.