Sales and profitability are expected to increase this year due to the gradual decompression of the cost of raw materials and packaging materials by Sarantis Groupwhich is engaged in production and marketing consumer goods. At the same time, the group is “unfreezing” negotiations for a new acquisition in Romania, and after the “divorce” from Estée Lauder, it is in talks with other brands, but no new agreement is expected within a year.

As stated by the company’s management during the presentation of the 2022 results of the Association of Institutional Investors, this year’s sales (excluding the acquisition of the Polish company Stella Pack) are estimated at 480 million euros, from 445 million euros at the close of 2022, an increase of approximately 8%, mainly due to increased sales volume. “This is a conservative estimate as the year is already off to a strong start, with sales more than doubling,” said Kostas Rozakeas, deputy managing director and group chief financial officer, adding that first-quarter sales were up more than 20%. %, and if we remove the seasonal sales of Easter products, then the increase reaches 17%.

While the group’s profitability was under pressure in 2022, this year it will rise due to higher sales as well as lower inflationary pressure. So EBITDA is estimated to reach 53.9 million euros in 2023 compared to 45.5 million euros in 2022 (+18.4%), and the EBITDA margin will reach 11.2% from 10.2%. At the same time, EBIT is estimated to increase by 24%, to 40 million euros, and net income will grow by 8.2%, to 28.4 million euros, while last year they decreased by 15.3%, to 26. 2 million euros. Regarding the acquisition of the Polish home goods company Stella Pack, the group does not disclose the price due to negotiations with other brands in the same sector, but expects the deal to be approved by the Polish competition authorities soon.

The group currently has four production units (two in Poland, Greece and Ukraine), and following the acquisition of Stella Pack, which also has a plant in Poland, commercial and production synergies are being considered through the possible integration of its unit. Sarantis Polska in Stella Pack. “Our goal is to concentrate production at our own factories in order to reduce costs and achieve commercial synergies from the future growth of the brands we will buy in the future,” the group says of its acquisition strategy.

If we take into account the contribution of Stella Pack, sales this year could approach 515-520 million. The group emphasizes that there will be no “direct reduction” in product prices, but indirect through offers. Finally, the company is also represented by private label products, which account for 10% of its total turnover, aiming to increase this share with the new Polipak plant in Poland, which also produces garbage bags. own brand.