Net sales increase from $76.78 million (€61.9m) in the first six months of 2003 to €91.24 in the first six months of 2004. This meant that comparable net income increased from €6.4 million to $8.6 million during the same period, while operating profit rose 20 per cent to just over $16 million.
Net profit on an EBITDA basis rose 22 per cent to $17.2 million, reflecting an increased margin of 18.7 per cent from 18.4 per cent.
The company said that the increase in its sales came from the success of a number of its main lines, particualry its facial care offerings. Sales of the company's facial care products were said to have increased between 20 - 25 per cent.
A focused shift towards higher margin products had paid dividends, helping to improve profitability. This, combined with a concerted sales and marketing programme to promote the high margin products in the company's product portfolio had helped to push both sales and profitability.
Kalina was formed in 1999 and is an amalgamation of Russian and Western European cosmetics operations, including subsidiaries Pallada and Lola Atir Upa in Uzbekistan as well as Kosmetik in Germany and Kalina Overseas in the Netherlands.
Main product areas include skin care, oral care, hair care, baby care, fragrances and male grooming. The company's sales grew at a rate of 30 per cent between 2002 and 2003 and last year's net profits topped $10 million. Currently it has a 34 per cent share of the Russian skin care market and a 15.8 per cent share of the oral hygiene market.