Global Cosmed comments on 2022 financial results: we are over the worst!


Global Cosmed Group sums up 2022 operations: The war in Ukraine is a test for the most tenacious. Visible sales growth, modernisation of factories towards efficiency and strong branding are our successes. All this despite massive inflation and upheaval in the market for production components due to the war in Ukraine.

The financial results are assessed by the GC Board as being far from expectations and absolutely not reflecting the company’s potential. A 13% increase in consolidated revenues to almost PLN 400 million in 2022; a decrease in consolidated EBITDA to PLN 12.6 million due to a significant increase in the cost of raw materials and consumables (+ 24% YoY); maintaining cost discipline in other categories.

Technological improvements in factories, the rebranding of all Global Cosmed brands, the development of exports and a strong commitment to sustainable growth are all elements of Global Cosmed Group’s long-term growth strategy.

The increase in production was based on automation and robotics through the purchase of high-performance production lines (a record investment in machinery in 2021). Their adaptation and installation took the whole of the last year. The effects can be seen, for example, at the German plant in Stadtilm, where production capacity increased by 50% in 2022 and will eventually double compared to 2021.

The last two years have also been used to develop Global Cosmed’s brands. The rebranding of the Bobini brand (named Children’s Brand of the Year 2022), the introduction of new product lines in the Kret brand (market leadership confirmed by the Golden Receipt award), the entry of the Sofin brand into the most valuable market category, i.e. laundry detergents (and the launch of innovations for the visually impaired – special Golden Innovation award), are expected to lead to an increase in the share of private label sales.

Finally, the third pillar of the business strategy is the export development of Global Cosmed brands. We are pursuing this through growth in markets where we are already present and by winning contracts in new countries (e.g. Georgia or Asia). At the same time, we have increased private label sales in Germany by 50% YOY.

“Our performance expectations for 2022 were significantly higher. We assumed that the end of the pandemic would allow the company’s growth to accelerate. However, instead of the expected stabilisation of the market situation, the outbreak of war brought further turbulence.  The result was a further increase in raw material prices and a further reduction in their availability. Production costs rose faster than the ability to verify prices with major customers. In the short term, therefore, costs outstripped sales. However, we took advantage of this difficult period to invest in our branding and modern machinery. This will allow us to realise our growth potential in the coming years, starting in the first months of this year”, commented Magdalena Miele, Vice President of the Management Board of Global Cosmed S.A.

Part of building a market advantage is the adoption of a Sustainability Strategy in 2022. Structures for managing ESG risks and opportunities, direct responsibility for Strategy implementation by a member of the Management Board, Working Groups with specific objectives are strong foundations for building a modern business. Results after the first month include the development and implementation of our Climate Policy, Sustainable Supply Chain Management according to ESG criteria, Health and Safety at Work and Community Involvement. The company has also adopted the Integrated Product Development Programme, which applies the principles of a closed-loop economy to the manufacture of cosmetics and household chemicals (a programme that has won gold in the ESG Innovator competition).