Papoutsanis – Increase in revenues but also concerns about raw materials

Although the management of Papoutsanis estimates that the prospects remain positive for the company, in the financial statements for the first half of the current year it is pointed out that any continuous increase of raw material prices, maintenance of fares at historically high levels but also increase of costs will negatively affect operating profitability.

As mentioned, the company’s management largely managed this sharp increase in costs by passing on the increase to customers, especially in the categories of third-party product producers and industrial soap sales. Also, part of the materials consumed during the first half of the production, the Company either kept it in stock since the previous year or had negotiated and agreed with key suppliers a specific quantity and price at lower levels than those in force in 2021.

In any case, and based on current data, the outlook remains positive, the company notes with its management estimating that the second half of the year will show improved operating profitability compared to the first half of 2021 and the corresponding second half of of the previous year.

In the first half, Papoutsanis recorded a growth in turnover of 16%. Specifically, the turnover amounted to 24.2 million euros compared to 20.9 million euros in the corresponding period of 2020.

The increase in Papoutsanis’ turnover is due to the high performance of the categories of branded products (excluding antiseptics), producers for third parties, but also to the increase in sales of special soaps, and 0raw material for the production of solid soap.

Papoutsani’s exports amounted to 14.4 million euros in the first half of 2021, which represents 60% of total turnover, recording an increase of 38% over the same period last year.

23% of the total income comes from sales of Papoutsanis branded products in Greece and abroad, 8% from sales to the hotel market, 54% from productions of products for third parties and 15% from industrial sales of soap masses.

Gross profit was positively affected by sales growth during the current period and amounted (for the group and the company) to 8.0 million euros compared to 7.1 million in the corresponding period of 2020, showing an increase of 13%. The gross profit margin was 33% compared to 34% in the first half of 2020.