25.7 million PLN of consolidated EBITDA in 2021 and 18.8 million PLN invested in innovative manufacturing assets are the most important financial indicators of Global Cosmed S.A. for 2021. The company’s management board assesses the results as satisfactory, taking into account the entire list of factors weakening the purchasing power of zloty and the growing costs of manufacture.
Historically high investments carried out by Global Cosmed S.A. in 2021 (70% higher than in 2020) is an expression of the company’s strategic and long-term approach to the development of the Capital Group. Raging inflation, rising costs of energy or increasing market requirements related to environmental issues actually force investments in more cost-effective and energy-efficient machinery. In line with its business strategy (and the Sustainable Development Strategy included in it), the company is looking for its competitive advantages in automation, the highest quality production and product standards, the development of its own brands and cost savings, e.g. from the circular economy model.
At the same time, shareholders should welcome the substantial consolidated EBITDA of PLN 25.7 million, dividend payment of PLN 5.2 million and reduction of net debt by over PLN 0.7 million in 2021, despite the increases in the prices of raw materials for manufacturing (by up to 70% year on year in some cases) or the risks of disrupting supply chains due to the COVID-19 pandemic.
The Capital Group also ends the financial year with a high amount of own share buy-backs, the amount allocated for this purpose being PLN 1.1 million.
The most important word in 2021 was costs. The second half of the year was special in this regard and the talks with suppliers and buyers were extremely difficult. In order to maintain the profitability of production and be able to develop strategically important directions, it was necessary to increase efficiency and reduce production costs thanks to automation and robotization. Along with technological investments, work was underway on the rebranding of our brands: the line of Apart soaps, bath foams and shower gels as well as Sofin rinsing liquids. The flagship brand Kret, apart from drainers, can boast of new product lines, just like the children’s brand Bobini, which has just launched products after a comprehensive rebranding. We are also developing new products with the Global Cosmed logo, as exemplified by organic cosmetics and household chemicals by the Biophen brand, commented Magdalena Mielimonka, Vice President of Global Cosmed S.A.
The company emphasizes that investments in 2021 were carried out in a situation of abrupt and unpredictable changes in the prices of raw materials and production components. The profitability of commercial contracts is being monitored on an ongoing basis, and sales price negotiations take place immediately when profitability deteriorates. Russia’s invasion of Ukraine intensifies global inflation processes in 2022, which creates many new challenges in the current operations and forces the Management Board to adopt a conservative approach in the hopes that the investments made and the increase in performance should start to bring benefits in the coming quarters.
We do not want the unstable political and economic situation to dampen our ambitions. Investments in an effective and environmentally friendly machinery and very good products with the Global Cosmed logo are the aces up our sleeve. Our goals set in the strategy in ESG areas, which you can read about in the recently published Sustainable Development Report for 2021, are our directions for further strengthening the solid foundations of the company’s operation, President Magdalena Mielimonka summed up.
The non-financial report published together with the financial one discusses in detail the company’s approach to sustainable development and the 4 pillars that have been set as leading directions, i.e.: Responsible Management, Green Global Cosmed, By People for People and Quality Guaranteed by GC. The document was prepared for the first time in line with the Global Reporting Initiative Standard, the WSE Guidelines, and also includes a section devoted to the EU Taxonomy. It is worth taking a closer look at the detailed analysis of the production and product quality building system as well as the company’s response to the circular economy.