Personal Hygiene firm Septona gets bigger slice of market

With export sales beig a strong suit, Septona, a dominant player in the personal hygiene sector, expects better returns in the near future, continuing to invest in the full verticalization of its production.

The company, under the management of the president and managing director Ms. Konstantinas Evangeliou, is investing in the creation of a new factory in Oinophyta, the sixth in a row, as it has four others in Greece and one in Bulgaria, with the aim of better managing operating costs.

The high prices of energy and raw materials combined with the decline in consumption due to inflationary pressures, are squeezing the company’s, which this year strengthens its presence in the category of baby wipes, in new categories of cosmetics and liquid soaps.

Exports

The company’s significant exports balance out domestic pressure.

With a vertical production model, 55% of the company’s turnover comes from its presence in international markets, mainly in the private label segment, while its export sales include the Septona brand in 49 of the 70 countries to which it exports its products .

The most important markets are those of England, Germany, France, Austria, Switzerland and the Arab countries. It is also present in markets such as the USA, South America, Russia, China, Australia and Zimbabwe.

At the end of 2021, Septona employed 545 persons (569 in 2020), and has distribution centers in Europe.

Increase in sales decrease in profits

Group sales in the 2021 financial year amounted to 84.3 million euros, compared to 83.2 million in the previous year, an increase of 1.4%, which was entirely driven by the overall increase in Septona sales by 3.5 million euros, as its subsidiary in Bulgaria showed a decrease in sales by 2.1 million euros.

The group’s gross profit in 2021 amounted to 34.4 million euros compared to 33.7 million euros in 2020, an increase of 2.0%.

The group’s earnings before taxes, financial results and depreciation (EBITDA) amounted to 7.9 million euros compared to 12.1 million euros in the previous year, while in the net results after taxes the group showed a profit of 2.47 million .euros, against profits of 6.16 million euros for the 2020 financial year.

Management proposed not to distribute a dividend for the 2021 financial year as well.

Septona is a 100% Greek family company with almost 50 years of presence on the Greek market.

It was founded in 1973 with a multi-shareholder composition with the basic product being the cotton swab. In 1982, a bank employee and a pharmacist, Thomas and Roi Evangeliou, bought 50% of the company, while after eight years the young couple gained full control.

Soon the new owners decided to verticalize and grow the company, producing all parts of the product from the plastic sticks and cotton to the final packaging, while focusing on exports along with expanding into new products.

The change in the production model as well as the favorable situation took off the company’s figures and, since 1997, when the first 100% vertically integrated production unit was implemented in Oinophyta, with the aim of increasing production capacity, the company’s turnover jumped from 3, 3 million euros, to 29.6 million euros in just one decade, i.e. in 2007.

In 2017, the turnover exceeded 66.3 million euros, while already in 2014 the company expanded its activities in the food market, creating two innovative lines of gluten-free products, rice wafers and breakfast cereals.

The extroversion of the business, especially during the crisis years, as well as continued investment, were the factors that helped it to grow further. Between 2010 and 2017, Septona’s investments exceeded 35 million euros.