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• Revenue Growth: 24% increase compared to 2023.

• Organic Growth: 9% excluding Stella Pack.

• EBITDA: Grew by 33% to EUR 81.6 million; EBITDA margin increased by 80 bps to 13.6%.

• Net Income: EUR 46 million, up by 17% from 2023.

• Earnings Per Share: EUR 0.71, a 21% increase from the previous year.

• Beauty and Skincare Sales: 24.1% increase in net sales.

• Home Care Solutions Sales: EUR 212 million, impacted by Stella Pack acquisition.

• International Skincare Sales: EUR 19.3 million, a 12% increase.

• Greece Sales: EUR 170.6 million, a 9.3% increase.

• Poland Sales: EUR 184 million, a 67% increase, largely due to Stella Pack.

• Net Debt: EUR 8.5 million, converted to net cash position by January 2025.

• Free Cash Flow: EUR 33 million generated in 2024.

• Proposed Dividend: EUR 20 million, a 33.3% increase from last year.

• Warning! GuruFocus has detected 4 Warning Sign with FRA:SSA1.

Release Date: March 13, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Gr. Sarantis SA reported a strong revenue growth of 24% for 2024, with an organic growth of 9% excluding the acquisition of Stella Pack.

• The Beauty and Skincare category experienced significant growth, with a 10.4% increase in volume and 24.1% in net sales.

• The company achieved a 33% increase in EBITDA, reaching EUR 81.6 million, with an improved EBITDA margin of 13.6%.

• The proposed dividend payout for 2024 is EUR 20 million, a 33.3% increase from the previous year, reflecting a 43.5% payout ratio.

• Gr. Sarantis SA's international expansion, particularly in the skincare segment, showed promising results with a 12% sales growth and a 41% increase in EBIT.

Negative Points

• The Ukrainian market faced challenges, with no growth reported due to difficult market conditions, impacting the overall performance.

• Despite the overall revenue growth, the EBIT margin remained relatively flat at 37.7%, indicating potential pressure on profitability.

• The company anticipates a lower growth rate of 4.7% for 2025 compared to the 9% organic growth achieved in 2024.

• Increased CapEx for 2025 is planned at EUR 40 million, up from the initial plan of EUR 33 million, which may impact free cash flow.

• The integration of Stella Pack is ongoing, with some activities continuing into 2025, potentially delaying full synergy realization.

Q & A Highlights

Q: Can you explain the improved EBIT margin for 2025 compared to the five-year plan? A: Ioannis Bouras, Deputy CEO, explained that the improvement is due to a favorable mix, particularly in the Skincare and Beauty category, which is performing better than expected. Additionally, operational expense management and margin improvement initiatives are contributing to the enhanced margins.