Iltners mentioned that the natural cosmetics industry in Europe continues to be a relevant and growing cosmetics segment. When shopping online, a trend typical of the Covid-19 era, people are increasingly getting to know and evaluate the ingredients and origins of cosmetics, preferring to use natural resources.
He stressed that the situation of Covid-19 led many outlets to rethink their operating strategy and reorient to modern natural cosmetics brands. “Madara Cosmetics and Mossa fit in very well with this market trend. Overall, the results and experience gained in the first half of the year allow us to look with optimism at the rest of this year,” said Iltners, noting that the company’s goal to reach 15 million euros of turnover remains in force. He also predicted that the development of e-commerce would continue.
Iltners acknowledged that the specifics of the Latvian perfumery and cosmetics industry and its added value lie in the high share of the industry’s exports and innovations, creating new products, where Latvian scientists also have a hand. More than 75% of cosmetics produced in Latvia are exported.
“The current market situation has forced us and other companies in the industry to pay more attention to e-commerce sales channels. We increased this focus, working both to improve the company’s own e-commerce platform and to strengthen cooperation with other e-commerce channels in target markets.” said Iltner.
He noted that despite the strict sales restrictions in many European countries, this has also been a successful period for attracting new customers or physical stores, for example, in Germany and France, the company has opened several dozen new outlets in the first half of the year. Investments in new products have also resulted in the new products bringing the company a total of 793,000 euros in the first half of the year.
It has already been reported that the turnover of the Madara Cosmetics group in the first half of this year was 8.217 million euros, which is 47% more than in the corresponding period of 2019, but the group’s profit has increased 2.2 times and amounted to 1.807 million euros. Among other things, the Group’s revenue from sales in Latvia in the first half of 2020 has increased by 56.6% compared to the first half of 2019, reaching 2.282 million euros, revenue from sales in other European Union countries has grown by 45.5%, reaching 5.43 million euros, but revenues from sales of products in other markets have increased by 19.2%, amounting to 401.3 thousand euros.
The largest market outside Latvia for Madara Cosmetics is Finland. In the first half of 2020, the company’s revenue in Finland amounted to 1.32 million euros, which is 2% less than in the corresponding period last year. The company’s largest owners are Uldis Iltners (24.08%), Lote Tisenkopfa-Iltnere (23.92%), Finland’s Transmeri Group Ab (23.09%), Zane Tamane (7.61%) and Liene Drāzniece (6 , 83%). Madara Cosmetics shares are listed on the Nasdaq Riga alternative market First North.
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