Papadopoulos Biscuits: Caprice wafer rolls set record, new investments, stakes and a century of sweet existence

2021 proved to be “sweet” for Papadopoulos S.A., a company beloved in Greece, which this year marks its centenial.

An example of resilience and value creation, the biscuit and food industry in 2021 increased sales by 3.5% to 185.04 million euros against 178.85 million euros in 2020 and 173.83 million euros in 2019.

The net profits before taxes in FY 2021 also showed a positive sign, which amounted to 15.83 million euros compared to 14.92 million in 2020, marking an increase of 6.2%. In fact, profits exceeded those of 2019 by almost 2 million euros.

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A double-digit growth rate was recorded in net profits after taxes for FY 2021 which reached 12.81 million euros against 11.59 million euros in 2020, marking an increase of 10.6%.

The number of employees of the company also moved upwards, as it increased by 5.12% to 1,538 people from 1,463 in 2020.

Consumer behavior

According to financial statements, 2021 was the second year in which the effects of the pandemic and the reactions of the consumer public to the conditions it created were the most important factors shaping consumer behavior.

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At the start of the year, overall consumption was noticeably lower than the year before as there was no large hoarding by households, as had been seen during the first lockdown the previous year and which had offset the effects of reduced tourist traffic.

In addition, the recovery in tourist traffic was significant in 2021, but it was slow to start, depressing overall demand, especially in the first months of the year.

Nevertheless, it is pointed out that the targeted promotional actions of the company, continued introduction of new products and the improvement of the market share had the result of maintaining and expanding the level of operations at satisfactory levels in relation not only to the previous year but also to pre-pandemic era.

Company brands

Regarding the course of the company’s brands, Caprice wafer rolls achieved the brand’s highest performance over time with the addition of a new code with 30% reduced sugar

Choco coated, Oatmeal, Cream Crackers and the new “No/Less Sugar” cookie codes also showed expansion.

Digestive Bars continue to gain market share and consumer confidence, despite their fiercely competitive environment.

As concerns bread products, the line of “gluten-free” products was strengthened and the market for German Bread continued to grow.

In baked goods, there was significant growth in village toast as well as “Kritsinia” bread sticks and Krispies rusks due to the 2 new codes with carob.

International markets

Despite the very real difficulties due to the pandemic, the implementation of most aspects of the long-term strategy continued for international markets as a result of which the company has a presence today in 61 countries, with significantly increased activity.

Finally, in 2021 the International Travel Retail (ITR) segment started to recover, recovering some of the losses it had suffered due to the restrictions and side effects of Covid.

The new crisis

“Although the difficulties and malfunctions caused by the pandemic in the last two years have now begun to recede, the company is now faced with the new acute challenges brought about by the explosive increases in the global prices of raw materials, packaging materials and energy”, the company has said.

In this difficult environment, the management of Papadopoulos is making every effort to limit the consequences of these price increases on the final prices that will be borne by consumers, being fully aware of the consequences of an uncontrolled price increase rally.

However, the company emphasizes that there will be no relaxation of the strict quality standards it always applies for the materials it uses in the production of its products.

Investment plan

These efforts include the company’s new significant investments aimed at optimizing production costs and increasing productivity.

In particular, the company has submitted investment plans according to Law 4399/2016 totaling on 31/12/2021 46,267,099 euros (on 31/12/2020 it was 11,086,902 euros) of which 11,000,118 euros will be subsidized using tax-free reserves of the said Law.

From the above investment program, the company has realized by December 31, 2021 investments worth 18,533,130 euros (31/12/2020 7,286,224 euros).

It has also completed the 27.4 million euro investment program which was subject to the provisions of the Development Law of 2004.

The biscuit industry maintains four factories in Tavros, Thessaloniki, Volos and Oinophyta and three distribution centers in Aspropyrgos, Thessaloniki and Volos.

Optimism for 2022

Although, a new generation of the Papadopoulou family, the fourth (today Ioanna Papadopoulou holds the position of president and managing director and her son, Evangelos Argyropoulos-Papadopoulos, that of vice president and deputy managing director), is preparing to take over the reins of management, the business strategy remains the same.

In particular, the company continues to emphasize the strengthening of equity capital and low borrowing. After all, in the last two years the debt-to-equity ratio stood at 0.06 and 0.08 in 2021 and 2020, while the short-term debt-to-equity ratio remained stable at 0.02 during the said two-year period.

For this year, “despite this unstable environment it is facing”, the company estimates that it will maintain a satisfactory activity and focuses its attention on the development of its shares both in the domestic and international markets.