A significant increase in its turnover was recorded by Wella Hellas the first year of its autonomous activity in the domestic market after the “divorce” from Sarantis groupalthough its profitability did not show equally “shiny” results.
Specifically, in the previous fiscal year (07/01/2022 to 06/30/2023), the turnover of Wella Hellas increased by 46% to 23.3 million euros from 15.9 million euros in the previous year.
Retail made the difference
The increase in the turnover of the company, compared to the previous year, comes from the marketing of consumer products, such as dyes, hair care and styling (Retail Hair Products), an activity that was taken over from July 2022 by the company Sarantis ABEE. This activity constitutes 24.4% of its total turnover, it is pointed out in the company’s financial statements.
Let us recall here that the traffic of hair care products through retail stores and supermarkets from 2018 until the end of June 2022 was owned by the Sarantis group, while the Wella salons and professional products sector remained the responsibility of the French Coty group.
The “divorce” of Wella Hellas with Sarantis was the result of another “divorce”, that of Wella with Coty, as the well-known hair products company became independent from December 2020, passing to the control of the investment company Kohlberg Kravis and Roberts (KKR).
Profitability did not follow
However, an 80% increase in cost of goods sold was recorded, reflecting inflation and the pressures on the global supply chain. This large increase significantly affected the profitability of the company.
Profits before taxes amounted to 443,832 euros, reduced by 28.47% compared to 620,511 euros of the previous year, while profits after taxes amounted to 346,348 euros from 620,511 euros in the 2021-2022 financial year.
The company, whose parent company is Switzerland-based Wella International Operations Switzerland Sarl, will not distribute profits.
Optimism for this year
For the current financial year 2023-2024 the company, which cooperates with over 20,000 businesses, hairdressers, barbershops and beauty and extremity care institutes in Greece, states in its financial report that it “aims to further improve sales by value, expanding capabilities of the network and making use of the quality and technology of its products, while aiming to expand its market share”.
He also notes that “she is optimistic and plans the future plans behind the strategic priorities of the group. Specifically, management will continue to remain committed to the company’s long-term goals, pursuing further sales growth, further improvement in profit margins, free cash flow generation and continued value creation.”
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