Sarantis plans acquisitions after posting strong results

By Guy Montague-Jones

- Last updated on GMT

Related tags: Europe, European union, Eastern europe

Greece-based Sarantis has announced plans to acquire new brands in
the near future after reporting strong annual sales and profit
growth.

Benefiting from the strong performance of Eastern European markets, the cosmetics and household goods firm posted a 12 per cent increase in 2007 sales to €241.6m. Profit figures followed suit with the gross margin increasing slightly to 50.32 per cent taking gross profit up 13.4 per cent to €121.5m. Net profits grew even faster rising 40 per cent year on year to €31.92m. Nine acquisition targets​ On the back of its strong financial results, Sarantis said in a conference call that it has nine acquisition targets in mind and expects to close some deals in the coming months. The company is aiming to acquire profitable firms that operate in its established markets. Cosmetics and fragrances are at the core of the business, representing 43.5 per cent of total turnover. They are also driving growth at Sarantis with sales increasing 20 per cent over 2007. Among last year's highlights was July's successful launch of its Mustang fragrance line in the US, for which it received an order for an additional 1m units from Estee Lauder. The company plans to build on the success of the range in 2008 by rolling it out in Latin America. Growth strategy ​ In terms of its growth strategy for the coming years, Sarantis is planning to increase the turnover contribution of fast-growing Eastern European markets while sustaining solid sales figures at home. In particular the firm will focus on developing distribution networks in its new markets of Ukraine, Turkey and Russia. Currently, the Greek market accounts for 44.39 per cent of total turnover but the highest growth rates are coming from countries in Eastern Europe such as Hungary, Bulgaria and the Czech Republic.

Related topics: Business & Financial

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