Sarantis Group records sales drop in 2009

By Katie Nichol

- Last updated on GMT

Related tags Currency

Greece-based consumer products company Sarantis has reported a drop in sales for fiscal 2009, and remains cautious for 2010.

Consolidated turnover declined by 14.93 per cent to €220.65m ($294.63m) in 2009 compared to a figure of €259.37m in 2008.

Gross profit came in at €110.58m, the company reported, representing a fall of 16.27 per cent on 2008’s figure of €132.06m.

Sales dipped in cosmetics division

The drop in sales across the company’s cosmetics division, which contributed to 42.78 per cent of the company’s annual turnover in 2009, was greater than that of the household products division.

Sales figures for cosmetics came in at €94.39m, which equates to a decrease of 16.79 per cent on the previous year’s figures.

This was due to the slowdown in consumer spending and unfavourable foreign exchange rates in the group’s foreign markets, it was reported.

Although cosmetics sales in the fourth quarter of 2009 fell by 13.88 per cent, the three-month period outperformed previous quarters. According to the company, this was mainly due to the stabilization in currency devaluation across the group’s foreign markets during this period.

2010 outlook

Looking to the 2010 financial year, Sarantis management expects that difficult trading conditions as a result of the economic downturn will continue.

The company expects to achieve net sales of €230m for 2010, an increase of 4.2 per cent on 2009 figures.

In order to drive sales growth, Sarantis says it plans to focus on its own brands portfolio, which includes cosmetics and household products.

Own brands contributed to 72.24 per cent of Sarantis’ turnover in 2009, and the company plans to focus on increasing the market share of such brands in the Eastern European region.

In addition, the company will look for acquisition targets that will allow for synergies based on market share, profitability and cost structure, it said in a statement.

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