19.5 C
Bucharest
August 11, 2022
BUSINESSBUSINESSCOMPANIESECONOMY

In 2021, Farmec achieved a turnover 8.4% higher compared to the pre-pandemic period, respectively compared to 2019

Farmec, one of the largest Romanian companies, announces the financial results recorded in 2021, a year characterized by a slight economic recovery after the periods of sanitary restrictions in the last 2 years and a reduction in demand for some products, such as disinfectants.

Thus, the company’s turnover was 285 million lei, 8.4% higher compared to 2019 and 1.2% lower compared to the result of the previous year, 2020, a year in which the large share in sales was made by disinfectant products. Without the disinfectants category, Farmec sold almost 4% more products in 2021 compared to 2020, the turnover related to them being 8.1% higher.

Increasing sales, except for disinfectants, have been recorded in most product ranges, whether we are talking about cosmetics or home care products. Significant increases compared to the sales in 2020 were recorded by the Gerovital Sun, Gerovital Men and Gerovital H3 Evolution ranges, relaunched at the beginning of last year, followed by Nufăr, Triumf, Gerovital Tratament Expert and Gerovital H3 Classic.

The positive results are due to the increase in the notoriety of Farmec’s brands among consumers, the rapid adaptation to market conditions and the investments. In the last 5 years, Farmec made investments worth over 37 million lei in equipment, new production lines, modernization of storage spaces, expansion of the car park, its own stores, and digitalization. Thus, Farmec has relaunched its e-commerce platform, the channel with the highest value growth during the pandemic – by almost 60% in 2021 compared to 2019.

The research and the development expenses of the company exceed 230 thousand euros annually and are focused on upgrading existing product ranges and creating new ranges of products. One of the latest actions to update and rebrand the formula targeted the Gerovital H3 Evolution range, following an investment of 400 thousand euros, an amount allocated for research, design and communication.

“The economic recovery in 2021 has found us ready for consumers’ growing appetite for quality products. Our long-term development strategy, modified in 2020 under the influence of the pandemic, has been successfully resumed and continued in 2021, which allowed us to register increases for the main categories, with the exception of disinfectants. We benefit from the position of local leader and strong brands, appreciated by the Romanian consumers, especially in the case of Gerovital as the Nielsen studies have shown in recent years. We will continue the 3 million lei investment program, announced last year, and we are counting on the launch of new products to improve our offer. Therefore, we are starting from a top position in 2022 and we are confident that we will improve the performances of last year”, said Mircea Turdean, CEO Farmec.

According to the data of the Nielsen research company, the brands in the Farmec portfolio have also maintained their leading positions in the top of consumer preferences in 2021, Gerovital and Nufăr brands being market leaders in the anti-acne segments and descalers.

In addition, Farmec continues the social responsibility campaign “Ai grijă de natură așa cum ai grijă de tine”, extended in 2021 in all Farmec and Gerovital brand stores accross the country, and ends the year with 83,000 packages selectively collected from consumers for recycling.

Gerovital products are available in Romania in a network of over 30 brand stores – the most recent store opening being a franchise in Baia Mare -, online and in partner stores. The brand is present in over 30 countries, through solid partnerships with distributors, its own e-commerce platforms or brand stores opened through local partners. Moreover, in 2021, the products were also listed on the Amazon platform.

Farmec has developed an integrated business flow, starting from the research and development of products to their manufacture and distribution on all sales channels. The company has a number of over 700 employees, who have generated every year added value to the company and additional income to its Romanian shareholders. Also, annually, the company paid the Romanian state through taxes and fees over 10 million euros.

 

 

Related posts

Romania’s GDP growth at 5.2pct in H1 2016, 6pct in Q2 2016 YoY

Nine O' Clock

Coca-Cola HBC Romania invests EUR 7 million in the Timisoara factory. The first high-speed dose bottling line in Romania has a capacity of 90,000 doses per hour

Nine O' Clock

Cyprus to receive EUR 1 bln from IMF

Nine O' Clock