Sales are up but decrease in profitability caused by her choice “Paputsanis” translate only a fraction of the increase in production costs into the prices of its products, a choice made by a company in an attempt to increase its market share and thus reap long-term benefits. The decline in energy prices and some of the raw materials used by the company in the first quarter of 2023 is encouraging as Paputsani’s management expects its profitability to improve in the current financial year.

In particular, according to what the listed company announced yesterday, its turnover in 2022 increased to 70.8 million euros compared to 54.8 million euros in 2021, recording a growth of 29%. “THAT increase in sales increased to 29% compared to 2021, with about half driven by volume growth and the remainder by selling price increases, largely offsetting rising costs across the board. In these difficult conditions, between covering 100% of the above cost increase and maintaining the increase in sales volume and share improvement, we decided to prioritize the latter by absorbing some of the additional costs. We believe this is the right strategy as it lays a solid foundation for the company to grow further and increase its profitability,” said Paputsani Managing Director Menelaos Tasopoulos.

The company’s exports also increased significantly by 36%, reaching 46.4 million euros compared to 34 million euros in 2021, representing 2/3 of its total turnover. Profit before tax fell to 3.9 million euros from 6.1 million euros in 2021, down 36%, while profit after tax fell 39% to 3 million euros in 2022 from 4.9 million euros in 2021 .

The largest increase in sales, as expected, was recorded in hotel products as a result of the restart of tourism. In particular, sales in this category grew by 98% compared to 2021, while it is worth noting that they grew by 51% compared to 2019, the last year before the pandemic and a record year for tourism revenue. The company attributes a significant increase in sales compared to 2019 to the expansion of existing partnerships and the conclusion of new ones.

Bar soap sales increased by 54%, which is due to the fact that “Paputsanis” has established itself as one of the main “players” in the international market. Sales of Papoutsani-branded products, excluding antiseptics, were up 26% compared to 2021, with gains from the acquisition of Arkadi soap making already evident as sales without Arkadi rose 16%. After all, the company’s goal is to significantly develop the detergent category, aiming for a 3%-5% share over a two-year horizon.

Finally, sales of third-party products (private labels) grew by 12% in 2022.