Methodically and without fanfare, the historic ION chocolate industry is strengthening its production footprint, looking to international markets.
After all, Spyros Theodoropoulos, president and CEO of Bespoke SGA Holdings, which owns 66.1% of ION’s share capital and was recently elected to the position of SEB president, has always maintained – and maintains – that the biggest investment to be made in Greece is the change of mentality, emphasizing the production.
New ION factory in Arta
As Mr. Theodoropoulos reports to OT, “the construction of a new wafer factory in Arta is underway, the completion of which is expected in September 2025”.
Spyros Theodoropoulos, president and CEO of Bespoke SGA Holdings
The new unit, according to him, will operate alongside the existing ION factory in Arta, significantly increasing the production capacity of the chocolate industry, while the goal is to develop new innovative products, based on the changing demands and preferences of consumers.
The amount of investment will reach 20 million euros says the head of Bespoke, while last year ION in its three production units in Neo Faliro, Markopoulos and Arta made investments of 16.8 million euros in mechanical equipment and infrastructure which will form the foundation for the achievement of the company’s long-term strategic development plan.
Code extroversion
Currently the “jewel in the crown” of Bespoke SGA Holdings, ION’s strategy is focused on extroversion, as is the entire food group envisioned and created by Mr. Theodoropoulos.
It should be noted that sales in foreign markets fluctuate in a percentage of more than 10% of the company’s total turnover, which reached 2023 – another year of positive performance for the company – at 114.38 million euros from 112.95 million. euro in 2022.
The comeback of candies
At the same time the chocolate industry is expanding further into the sweet snack sector. Thus, two weeks before the versatile businessman was elected president of the country’s largest employer, and specifically on June 5, 2024, the signing of a preliminary agreement was unanimously approved for the acquisition of 74.99% of the shares of the candy companies “Lavdas Anonymi Etairia Zacharodis” and “Olympic Hermes A .E.” The transaction is expected to be completed within this year.
This acquisition brings the historic industry back to familiar “paths”, signaling a dynamic come back in the confectionery industry.
In fact, according to Mr. Theodoropoulos, strong relaunches of codes, which ION had until 2016, such as the iconic baloo candies, have been launched.
The absorption of Brothers I. Kotsiopoulos and the payment of the bond
At the same time, in the context of internal reorganization, in 2023, ION proceeded to absorb the company Afoi I. Kotsiopoulos SA.
The company Brothers I. Kotsiopoulos SA. since its establishment, it has had as its primary purpose the exclusive distribution and disposal of the products of the ION SA company, having a fleet of passenger and truck vehicles operating throughout Greece.
In addition, in March of this year, the company proceeded to repay a bank loan of 27.5 million euros with an equal amount of long-term bond loan, which was covered by the parent company Bespoke with an expiration date of August 2031.
The challenges of 2024
“The maintenance of the price of cocoa at high levels and the persistence of inflation, which is likely to limit the disposable income of households, prescribe the challenges that the company will be called upon to face during 2024”, it is stated by the management of ION in its financial report for the previous year.
However, as Mr. Theodoropoulos notes, this year will be a much better year for ION’s performance both in terms of revenue and profitability indicators.
The fund of 2023
Although the financial results of 2023 are not comparable to 2022, since the chocolate paste sales are missing from last year’s balance sheet, the company’s turnover increased last year by 12,132,001 euros, or 12.1%, while pre-tax profitability was to 7.4 million euros.
Profits after taxes amounted to 5,698,103 euros from 9,985,290 euros in 2022, while if the transaction is excluded from the sale of the participation it would rise in 2022 to 4,279,888 euros.
We remind you that from the agreement of the acquisition of ION by Mr. Theodoropoulos, the activity related to the production, distribution and distribution of chocolate paste products (e.g. “Nucrema”, “Sokofretta-cream”, “Noisette cream” etc.) was excluded. etc.), the whole of which was transferred to the company Interion which belongs to the old main shareholders of ION etc. Konstantina Kotsiopoulou, Vasilios Vytogiannis, Efstathios Loizos and Nikolaos Karkazis and its production has been transferred to Bulgaria.
Source: OT
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