A quarter-on-quarter increase in revenues from cosmetics and household chemicals sales by more than 12% percent, stable contracts, the positive effects of last year’s investments in our own brands and building production efficiency are the key elements which confirm Global Cosmed Group’s stable position in extremely volatile times.
Global Cosmed Group generated 5.46 million in EBITDA in the first half of this year. Its Q2 to Q1 doubling is the result of a rapid response to the conflict in Ukraine and a consistently implemented strategy of Global Cosmed S.A. It is based on production efficiency, strong own brands, and long-term contracts with business partners.
The temporary mismatch between sales values and raw material costs in the first quarter was related to the deepening crisis of price increases for key components and packaging, as well as Russian aggression in Ukraine. The need to maintain the trust of business customers and the continuity of product supply has necessitated the acceptance of prices for production components at levels that could not have been predicted in the budget plans.
In the second quarter, the results improved due to the renegotiation of trade contracts. The process is still ongoing and the effects will be spread over time. Its pace depends on the level of global and local inflation. All the while, very high prices for energy carriers next year remain a challenge.
An important pillar for building profitability is to consistently improve efficiency. Although the high costs of building efficiency are weighing on current results, we are already seeing positive effects. This applies to the areas of production capacity and cost optimisation. Two pouring machines have been put into operation at the German factory in Stadtilm. A total of 3 lines were retrofitted, which increased the efficiency of the factory by several percent with lower employment, pointed out Magdalena Mielimonka, Vice President of the Board of Global Cosmed S.A.
The first half of the year also saw important activities in the area of Global Cosmed brand management. Following the re-launch of the Bobini brand implemented in March and its positive reception by the market, the objectives for building the brand’s distribution were realised in the second quarter.
In March, the Group adopted an ESG Strategy. The published Sustainability Report presents details of its pillars as well as the bodies responsible for implementing the various objectives. The debut in the Polityka Leaves and Responsible Companies Ranking, as well as joining the Partnership for Achieving the Sustainable Development Goals (SDGs), are evidence of a credible and comprehensive approach to the issue.