Papoutsanis Sa · ATHEX:PAP
Papoutsanis Sa — Small Cap Conference 2024
30 slides from Papoutsanis Sa's conference presentation, Nov 12, 2024
Slide 1: Small Cap Conference
Small Cap Conference Eirini Chatziioakeimidou, Branded BU Director Zoi Mylonopoulou, Financial Controller November 12th, 2024
Slide 2: Disclaimer
Disclaimer BY VI EWING OR RECEIVING THIS PRESENTATION, YOU ARE AGREEING TO BE BOUND BY THE FOLLOWING LI MITATIONS. This presentation has been prepared by Papoutsanis S.A. (the Company) solely for informational purposes and cannot be used for any other purpose nor can it be addressed to any other per
Slide 3: Our Achievements to date
Our Achievements to date Sustainability People Plant Investment Own Brands New Partnership On Route to Gold Great Place to Significant spare +14% in Net Sales Initiated in Q2, full in 2025 Work Certified capacity (50%) led by Arkadi & Exports development from Q4 Solar Panels Installed Small Cap Conf
Slide 4: 9M Financials in sum
€ 49,6M € 19Μ Net Sales Gross Profit +4,5% vs 9M ‘23 +3M vs 9M ‘23 37,6% GP € 8,1M % net sales EBITDA 9M Financials +460bps vs 9M ‘23 +1,2M vs 9M ‘23 in sum 16% EBITDA 53% Exports 0,14 EPS % net sales % on total +41% vs 9M ‘23 +174bps vs 9M ‘23 Small Cap Conference, Nov 2024
Slide 5: Our Ambition
Our Ambition To be recognized as an iconic Greek corporation that leads sustainable innovation and financially solid growth. A reference for agility, consistency and resilience. Small Cap Conference, Nov 2024 5
Slide 6: Our Network
Our Network 41% EUROPE 7% 1% AMERICA ASIA 47% GREECE FRANCE, ITALY, UK, SPAIN, GERMANY, HUNGARY, PORTUGAL, POLAND, CYPRUS, BELGIUM, THE NETHERLANDS, AUSTRIA, SWEDEN, DENMARK, FINLAND, SWITZERLAND, IRELAND, SERBIA, ROMANIA, BULGARIA, LITHUANIA, UKRAINE, CZECH REPUBLIC, CROATIA, SLOVENIA, SLOVAKIA, NO
Slide 7: Four Pillars for Growth
Four Pillars for Growth Hotel Amenities Specialty Bases 18% of turnover 16% of turnover Own Brands 3rd Party & PL 30% of turnover 36% of turnover 9M Financial Results 2024 7
Slide 8: Our Strategic Imperatives
AGGRESSIVELY BUILD & DRIVE OWN DIVERSIFY BRANDS CONTRACT GROWTH CLIENT BASE LEAD ATTRACT & SUSTAINABLE ENGAGE FUTURE INNOVATION IN READY TALENT Our Strategic OUR INDUSTRY Imperatives FUEL PROFITABLE GROWTH EMBRACING VALUE -ADDING CHANGE
Slide 9: Own Retail Brands Aggressive Growth in 5YRS
Own Retail Brands Aggressive Growth in 5YRS 1. INCREASE 2. BRAND 3. GEOGRAPHICAL & PENETRATION STRETCH CHANNEL EXPANSION 9M NET SALES PAP NIELSEN MARKET SIZE 9M EXPORTS NET SALES In Million € In Million € In Million € 0,93 15 599 8,4 8,6 0,37 188 0,18 96 2020 2022 2024 2020 2022 2024 2020 2022 2024
Slide 10: Own Retail Brands to Double in next 5 YRS
Own Retail Brands to Double in next 5 YRS 1. INCREASE 2. BRAND 3. GEOGRAPHICAL & PENETRATION STRETCH CHANNEL EXPANSION NATURA AROMATICS KARAVAKI ARKADI PAPOUTSANIS # 1 IN SANITISERS BIG ENTRY IN LEADING GROWTH #1 BABY DETERGENT #1 IN BAR SOAP # 2 IN LIQUID SOAP SOFTENERS IN SHOWER GEL & +80% GROWTH
Slide 11: Hotel Amenities Vision
Hotel Amenities Vision To become the undisputable leader in Greece and a strong player abroad in the next 5YRS, led by our own brands (53% of total Hotel Pillar in 9M ‘24 Net Sales)
Slide 12: Hotel Amenities Strategic Priorities
Hotel Amenities Strategic Priorities Sustainable Domestic State of Art Strong European Customer Focus Solutions Coverage Presence Network & Options First-to-market with Penetration Growth Image Building Partners & Distributors Collections to cover eco, practical & through all channels Campaigns, Exh
Slide 13: Third Party & PL Strategy
Third Party & PL Strategy Extend Client Strengthen New New Product Base Partnership Categories Diversify customer Establish partnership Expand current portfolio with new multinational collaborations with new propositions and Initiate new collaborations Expand portfolio of categories in all sub-segme
Slide 14: Specialty Bases Strategy
Strong Specialized Partnerships & Certified Syndet Category SPECIALTY BASES 9M NET SALES STRATEGY 10,7 8,2 7,1 6,1 4,4 2020 2021 2022* 2023 2024 In Million € *One-off Commodity Soap Bases sales
Slide 15: Specialty Bases Highlights
Specialty Papoutsanis Strengths Bases No1 Soap Manufacturer in Europe Highlights Global Presence (Mexico, Egypt, Europe, Israel, Australia, New Zealand) Leading & high-end brands manufactured by partners with Papoutsanis specialty soap bases (L’ Occitane, LVMH etc) Customized formulas based on custo
Slide 16: Customers & Partners
Customers & Partners THIRD PARTY PRODUCTION SPECIALTY SOAP BASES HOTEL AMENITIES
Slide 17: Our Certifications
Our Certifications Small Cap Conference, Nov 2024
Slide 18: Sustainability in Action
Sustainability in Action 100% REPURPOSED RECYCLABLE ESPRESSO GROUNDS Monomaterial doypack UpC Collection of hotel 4,5 T refill easily recyclable 40% amenities LESS PLASTIC ECOCERT/RSPO Removal of secondary packaging Certified oil-based raw for own brand bar soap materials Small Cap Conference, Nov 2
Slide 19: Our ESG Performance & Targets
Our ESG Performance & Targets Green Sustainable Commitment Packaging 2030 Ambition 100% Plastic Free own brand bar soap packaging Clean 30% of plastic packaging from PCR (775tn in 2023) Formulas Continuous efforts for Water, Energy and CO2 Emissions reduction 82,1% 100% -4% -26% OF ELECTRICITY FSC C
Slide 20: Our Financials
9 MONTH 2024 PERFORMANCE Our Financials Small Cap Conference, Nov 2024
Slide 21: 9M Financials in sum
€ 49,6M € 19Μ Net Sales Gross Profit +4,5% vs 9M ‘23 +3M vs 9M ‘23 37,6% GP € 8,1M % net sales EBITDA 9M Financials +460bps vs 9M ‘23 +1,2M vs 9M ‘23 in sum 16% EBITDA 53% Exports 0,14 EPS % net sales % on total +41% vs 9M ‘23 +174bps vs 9M ‘23 Small Cap Conference, Nov 2024
Slide 22: 9M Sales by Category (in €'000)
9Μ Sales by Category (in €‘000) 9M 2024: +4,5% OWN RETAIL BRANDS HOTEL AMENITIES +14% +53% +195% +2% 0% -24% -6% 13.079 14.962 +14% 12.259 8.409 8.590 8.572 9.332 8.750 2.805 4.153 9M 2020 9M 2021 9M 2022 9M 2023 9M 2024 9M 2020 9M 2021 9M 2022 9M 2023 9M 2024 3RD PARTY & PL SPECIALTY BASES +12% +27
Slide 23: Financial Results (in €'000)
Financial Results (in €‘000) GP% EBITDA +4,600 bps @16,4% EAT% +200 bps ∙ Gross Profit improvement attributed to increased Own Retail Brands contribution ∙ Earnings after Tax benefited by reduced tax liability for the year due to investments’ completion leading to tax exemptions Interim Dividend 0,0
Slide 24: GP & EBITDA (adjusted) Evolution 9M 2024
GP & EBITDA (adjusted) Evolution 9Μ 2024 (in €‘000) GROSS PROFIT & GP% 9Μ 38% 34% 34% 33% 27% 28% 26% 18.630 15.631 13.030 13.873 ∙ Gross Profit & GP margin 10.337 6.204 historically high 4.917 ∙ GP% improvement attributed 2018 2019 2020 2021 2022 2023 2024 to increased contribution of Own Retail Br
Slide 25: 9M Review by Business Segment (in €'000)
9M Review by Business Segment (in €‘000) EBITDA (Adj) EBITDA (Adj) +€1,17M @16,4% NET SALES EBITDA (Adj) EBITDA (Adj) % vs 9M 23 OWN BRANDS Margin Dif % vs 9M 2023 Improved in All HOTEL AMENITIES Segments Dif % vs 9M 2023 3rd PARTY & PL Dif % vs 9M 2023 ∙ Specialty Bases leading in EBITDA% and margi
Slide 26: 2024 FY Estimate
2024 FY TURNOVER Estimate • Own Retail Brands expected to deliver strong double-digit growth & market share increase • Hotel Amenities expected to close the gap in performance vs 2023, led by own hotel brands exports • 3rd Party & PL is projected to close 2024 slightly lower vs prior year as the new
Slide 27: 12M Prospects Overview
12M Prospects Overview A Challenging Macro Papoutsanis Strengths & Environment Opportunities Global Upheaval (War in Ukraine & Production cost consolidation and the Middle East, American Elections efficiencies Result, Political Instability) Entry in new categories (Homecare) and Stubborn Inflation &
Slide 28: Papoutsanis Success Imperatives
Papoutsanis Success Imperatives SUSTAINABLE ENHANCE PLANT GROW ON ATTRACT & PROFITABLE INNOVATION COMPETITIVENESS 4PILLARS ENGAGE TALENT GROWTH Lead the sustainability State-of-the-art plant, Own Brands dynamic Train & upskill Restructure & Rationalize agenda in our industry vertically integrated gr
Slide 29: 2025 Projection
2025 Projection Double Digit Turnover Growth vs 2024 Significant volume increase and efficiencies thanks to full effect of new customer (delayed in 2024) and additional new projects Capex at similar level to 2024 (€4,5M) Actively looking for new acquisitions Small Cap Conference, Nov 2024 29
Slide 30: Thank you
Thank you Happy to answer any questions you may have