Table of Contents
- 1 The price for Lavdas candies and Olympic Hermes jellies
- 2 The financial footprint of Lavdas
- 3 Candies in the Age of Ozempic?
- 4 With the increasing emphasis on health and wellness, how should consumers navigate the vast array of candy options available? What advice would you give to those looking to enjoy sweets while still prioritizing their health?
With almost triple net profits and turnover increased by 16.2%, to 28.38 million. euros, the Lavdas caramel factory was closed in 2023, which will formally join the potential of the historical ION chocolate industry with key shareholder Spyros Theodoropoulos, president of SEB.
The price that ION will pay for the acquisition of 75% of Lavdas, as well as a corresponding percentage in Olympic Hermes, reaches a total of 22.5 million. euros, as revealed a few days ago in a document posted on GEMI.
The price for Lavdas candies and Olympic Hermes jellies
Specifically, the transaction concerns the purchase of: a) 1,326,010 issued shares of the company “Lavdas S.A.” which correspond to 74.99% of its share capital. As noted “part of these shares belongs by ownership to the party connected with the Company, Mr. Spyridona Theodoropoulos who is Vice Chairman of the Board of Directors and controlling shareholder of the Company’s majority shareholder”.
The shares will be purchased for a price of 14.52 euros per share. That is, about 19.25 million euro. b) 82,493 issued shares of the company “Olympic Hermes ABEE”, which correspond to 74.99% of its total share capital. And here part of these shares belong indirectly to S. Theodoropoulos. The shares will be purchased for a price of 39.32 euros per share. That is, a total of about 3.24 million euro.
The first investment move by ION in the Theodoropoulos era, which was announced in June this year, returns the chocolate industry to familiar “paths”, signaling a dynamic come back in the confectionery sector.
It is recalled that candies have been an important asset in the ION portfolio for decades. Certainly the older ones remember the legendary O-Mamy brand, the ION Health candies as well as the Baloo butter candies, which will be relaunched.
The financial footprint of Lavdas
The financial performance of Lavdas last year was more than satisfactory.
The turnover of the company which is one of the strongest players in the domestic candy market, having developed an expanded portfolio with popular products such as: Jelly Pop, Eclair, Charleston, Geneva, Ageladitsa, Lavdas, Golden Milk, Piccolo, Gum On! and Zero, amounted to 28.38 million. euros from 24.42 million euro in 2022.
In terms of profitability, the pre-tax result was 2.59 million. euros, four times more than 806 thousand. euro of 2022.
The net profits after taxes were many times higher, as last year they amounted to 1.88 million. euros from 677 thousand euro in 2022.
It should be noted that in addition to the domestic presence, in recent years Lavdas has also developed export sales in the markets of Europe, the USA, Asia and the Arab states where it directs more than 50% of its products.
The average collection time of the company’s trade receivables is 85 days, while there are receivables from customers of 10.879 million. euros and from postdated checks receivable amounting to 1.035 million, representing 3.65% of the turnover.
Lavdas employed 201 people at the end of 2023, compared to 193 people in 2022.
Candies in the Age of Ozempic?
At a time when the growing popularity of obesity drugs like Ozempic is changing not just fashion, but the food industry (eg Nestlé launched a line of smaller-portion frozen meals specifically for GLP-1 drug users) , because the versatile Spyros Theodoropoulos gives 22.5 million euros for… candies?
Because quite simply, all international studies show that candies and in general the confectionery and chocolate sector “defeat” diets and health concerns at points.
Certainly for its part the industry, having realized the new trends for less – or no – sugar due to the increasing prevalence of diabetes, is focusing on the development of attractive and innovative products. In fact, the emphasis on clean label products and compliance with stricter regulations has led to the use of organic and natural ingredients, contributing to the expansion of this category.
It should be noted that Lavdas has invested in zero-sugar products with the Zero series.
The confectionery market size is estimated at USD 69.20 billion in 2024 and is expected to reach USD 83.46 billion by 2029, growing at a compound annual growth rate (CAGR) of 3.82%.
In fact, in Greece the growth appears significantly higher. At the end of 2023, total sales of the chewing gum and candy category showed a volume increase of over 6% in supermarkets and a much higher value increase of 22.5%.
Source OT
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Guest 1: Dr. Maria Katsarou, Nutritional Scientist and Expert in Obesity Management
1. As a nutritional scientist and obesity management expert, what are your thoughts on the popularity of candies and sweets amidst the recent trend of obesity drugs like Ozempic? Do you think there is a place for candies in a healthy diet, or should they be avoided altogether?
Guest 2: Mr. Antonis Papadimitriou, Founder and CEO of “Healthy Sweets”, a sugar-free candy company
2. As a leader in the sugar-free confectionery industry, what are your thoughts on the role of candies in today’s health-conscious market? Do you think there is a demand for healthier versions of sweets like yours, and how do you see the industry evolving in the future?
3. With the acquisition of Lavdas and Olympic Hermes by ION, it seems that the chocolate industry is making a comeback in Greece. What do you think sets companies like Lavdas apart from others in the confectionery market, and how do you plan to maintain their success in the face of growing health awareness among consumers?
4. The financial performance of Lavdas in 2023 has been impressive, with double-digit growth in both revenue and profitability. Is this evidence that people are still willing to indulge in sweets despite concerns about their health implications? How do you balance profitability with consumer demands for healthier options?
5. As we move forward into a digital age, how do you see technology impacting the confectionery industry? Do you see any potential for innovative uses of technology to create healthier or more customized sweets for consumers?
Guest 1: Dr. Maria Katsarou, Nutritional Scientist and Expert in Obesity Management
1. Candies and sweets should definitely be enjoyed in moderation as part of a balanced diet. However, what’s important is to pay attention to portion control and the overall quality of the product. There are now many options available on the market that are lower in sugar and calories, and incorporating these into a healthy diet can be a
