"Go for Great"
Sarantis wishes to become the #1 marketing and ‘brand-selling’ organization, both in Eastern & South Eastern Europe, via a strong own brand portfolio and the strongest direct and indirect distribution network in the consumer products’ domain.
Throughout the recent years Sarantis Group has demonstrated a dynamic and successful growth course. Up to now the company has achieved:
- Leading position in the production and distribution of consumer goods in Eastern and South-Eastern Europe.
- Leading market shares.
- Strong presence in the Eastern and South-Eastern Europe via 8 subsidiaries and a powerful exports network in more than 20 countries around Europe, Asia,and Africa.
- Healthy Balance Sheet and low leverage.
- Increased participation of own brands in the Total Group turnover.
- Increased participation of the Eastern European countries in the Total Group turnover.
The Group’s 2010 financial results (excluding the effect from the sale of the participation in K. Theodoridis S.A.) are in line with management’s estimations and reflect the decline in the consumer market. The drop of the parent’s sales was offset largely by the increase of sales from affiliates. However, increased production cost, due to the price increase of the raw materials, increased advertising and promotion expenses, together with expenses for the general reduction of operating cost significantly affected the group’s profitability. The sale of the participation in K. Theodoridis was considered a necessary action under the current circumstances.
As uncertainty in the market persists, the Group’s management expects that the adverse conditions in the economic environment will continue throughout 2011 as well and continues to emphasize on bringing its cost base in line with the expected revenue.
Management remains dedicated to its policy, for strong capital structure, low debt, containment of operating cost and in general for efficient management of working capital, with the objective to further enhance the Group’s financial position.
At the same time, as always, the Group remains focused on strategic objectives that support and secure a profitable outlook for Sarantis Group and specifically on the following:
- Organic growth of the core business activities and emphasis on Sarantis own brands portfolio.
- Increase of the existing market shares of own brands.
- Continuous examination of the situation in the economies of the Group’s countries and modification of the business where deemed necessary according to the new market conditions.
- Examine possible acquisition targets in the old countries of operation, as long as market share, profitability and cost structure allow for synergies. The Group’s management considers that current conditions are in favor of exploring possible new acquisitions.