A 16% increase in sales revenue in the first half of 2023, i.e. more than PLN 30 million (to PLN 212 million for the six months) is expected to mark the beginning of the growth period. More than three times year-on-year EBITDA is another argument that Global Cosmed S.A. is worth taking an interest in.
Global Cosmed S.A., cosmetics and household chemicals manufacturer, started the year strongly. After an apparent rebound in the first quarter, the second quarter brought the expected further increases cumulatively in the first half of 2023 with a nearly PLN 30 million increase in sales. The first half of the year also saw an increase in EBITDA to PLN 17.4 million (compared to PLN 5.5 million in the first half of 2023 and PLN 12.6 million generated for the full year 2022). This means a large net profit of PLN 7 million.
In June, the company’s management and supervisory bodies changed. Mr Andreas Miele, the previous President of the Management Board, started to head the Supervisory Board. Magdalena Miele, acting Vice-President of the Management Board, assumed the position of the President of the Management Board and the responsibility for managing the company was assumed by Mr Kamil Szlaga, the previous Financial Controlling Director, and Mr Arthur Mielimonka, Joint Managing Director for the German companies. The new management will continue with the existing growth strategy based on development of own brands, exports, and production efficiency.
A return to growth has been our goal for over a year. The very strong performance during the COVID-19 period allowed us to invest in technology and brands and compete for new markets. We have improved our production efficiency. For example, at the German Stadtilm plant, production capacity in 2022 increased by 50% and will ultimately be doubled compared to 2021. We have also transformed all our brands and acquired new foreign customers, including in Georgia, Asian countries, and Armenia. It has been worth it. We have embarked on the revenue and profit growth path set out in the strategy. However, this still does not reflect our potential, said Magdalena Miele.
Chart: Consolidated amount of revenue in 2021-2023
The increase in sales is due to, among others, sales of Global Cosmed S.A. brands. Let us see them one by one. The company’s product portfolio includes Kret, the market leader in drain cleaners. The brand, building on its credibility and effectiveness, has expanded its range to include, among others, toilet gels, rim blocks, and cleaning products. Bobini, Children’s Brand of the Year 2022 and winner of the Gold Innovation Award in the Household Chemicals category, is a brand that safeguards the needs of children from their first days of life. The brand stands out with high-quality cosmetic and hygiene products for baby and child care as well as detergents for washing and rinsing children’s clothes. Global Cosmed S.A. also includes Sofin, a brand that has boldly entered the huge category of laundry detergents. It started with softeners, which were well received by the market, followed a short time later by capsules, washing liquids, and gels. Apart, the final brand, is a specialist in body care (liquid soaps, shower gels, bath liquids, and intimate hygiene products).
In the last quarter, the contract for the sale of own cosmetic and household chemicals brands of Global Cosmed Group S.A., based in Jawor, obtained the status of a master agreement for Rossmann Supermarkety Drogeryjne Polska sp. z o.o., the largest drugstore chain in Poland, which was a success. Previously, the status was obtained by the contract between Global Cosmed GmbH, based in Hamburg, Rossmann GmbH, and dm-drogerie markt GmbH + Co.KG.
As of the end of August, the company achieved 90% compliance with the principles of the Good Practices of WSE Listed Companies 2021 (overall compliance rate of 78%), placing it in the top four companies in the apparel and cosmetics sector in terms of compliance with listed corporate governance principles.
The company’s commitment in sustainability, intensive work on the implementation of the CSRD, and advanced activities in the circular economy are recognised by the market and result in numerous invitations to cooperate and share knowledge. Hence, the long-term cooperation with the Association of Stock Exchange Issuers (training on reporting and greenwashing), the Polish Association of the Cosmetics Industry (best practices in circular economy), and industry organisations (participation in a panel at the Innovation Day or Time for ESG conferences). As a member of the SDG implementation initiative, representatives of the company will run a workshop at a conference at the Ministry of Development and Technology. All this confirms our commitment to our sustainability strategy and builds credibility in the eyes of investors, added Magdalena Miele.