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In 2016 the company posted EUR 5.862 mln in turnver and EUR 803,104 in profit.

The company’s EBITDA was EUR 1.766 mln or by 35% more than in 2016. In 2017 all IPO related costs were written off as expenses in the amount of almost EUR 300,000, which can be considered as onetime costs, and the mentioned result reflects the company’s activity result after the write-off of IPO costs.

The consolidated turnover of the company formed EUR 7.4 mln. This is very similar to the turnover guidance for 2017, which was EUR 7.6 mln. It is positive that the growth was essentially reached in existing sales channels, which have continued to develop solidly. The growth can be characterized as balanced and healthy, and is relatively evenly distributed among all sales channels. The management’s revenue guidance for 2018 remains in place (EUR 10 mln), the company said.

Similarly to 2016, almost 90% of the turnover came from EU countries (including Latvia). In 2017 the proportion of EU countries increased to 60.5% of turnover.

The largest market outside of Latvia is Finland. Turnover in Finland in 2017 formed EUR 1.7 mln, which is a 13% y-o-y increase. The parent company (Oy Transmeri Group Ab) of the distributor of the Madara Cosmetic’s production in Finland – Oy Natcos parent company, has become one of the company’s shareholders (6%), which is considered a positive signal for future development in the market of Finland. At the end of the year a new four-year distribution agreement with Oy Natcos was signed, which during a period of four years plans to double the 2017 Finnish sales results.

The company said that the situation in the natural cosmetics sector in Europe can be assessed as positive. The company’s position and future expectations can be assessed as stable. Natural cosmetics convincingly continue their success, by occupying an ever-increasing market share. The company expects that the existing trends will also continue in the coming years.

The company representatives also said that the company successfully implemented the initial public offering (IPO) and admission to trading on Nasdaq Riga alternative market First North for the company’s shares. The market reaction was positive and within less than two months the price of the shares in secondary trading rose by 20% from the IPO price – hence from EUR 6.25 to EUR 7.50 by the end of December 2017.

At the end of 2017 a new e-commerce platform was successfully introduced, which functionally provides significantly wider possibilities and allows a number of new e-commerce and marketing tools and solutions to be integrated.

Founded in 2006, Madara Cosmetics has several shareholders, mostly Latvian individuals. Since November 10, 2017, the company’s shares are listed on Nasdaq Riga alternative market First North.