Baltic Export, Good for Business, Latvia, Markets and Companies

The group's revenue from selling Madara products in Latvia grew 56.6% y-o-y to EUR 2.282 mln, while sales in other European Union member states grew 45.5 % to EUR 5.43 mln. Sales in other exports markets rose 19.2% to EUR 401,300.

Sales in Finland, which is Madara's largest export market, dropped 2% from the first half of last year to EUR 1.32 mln in January-June 2020.

"In the first half of 2020, the company has made big steps forward, continuing fast growth and achieving excellent results. At the same time this was also a very unusual period that passed under conditions of great uncertainty and has made the company revise its operational strategy. Looking back, now we can surely say that the company’s response to the situation caused by COVID-19 has been right and the series of decisions made in relation to the revisions in operational strategy of the company has allowed us to achieve the fastest growth of recent times," said Madara board member Uldis Iltners.

He indicated that the results of the first six months and the experience gained allow the company to look forward to the remaining part of the year with optimism. "We will strive to keep up the current dynamics and to use the strengths of the company in order to achieve even higher goals. The company is in an all-time best position for continued growth," said Iltners.

According to the company's financial statement, Madara achieved fast growth in the first half of 2020 thanks to focusing on e-commerce, attracting new retail clients, particularly in France and Germany, as well as a successful launch of new products on the market.

"In response to the situation caused by COVID-19 and the huge increase in demand for hand cleansing and disinfection products, the company launched ANTI line products. The share of the ANTI product line in the total turnover was 3.3%. The ANTI line in the company’s product portfolio is of a complementary nature and the company does not plan to focus on the development of this product segment," the company's management said in the report.

Madara Cosmetics has not changed its turnover target for 2020, which remains at EUR 15 mln.

In the first half of 2019, Madara Cosmetics turned over EUR 5.59 mln, which is an increase of 19.9% against the respective period in 2018, while the group’s profit dropped 18.8% y-o-y to EUR 809,007. In the full 2019, Madara Cosmetics raised turnover 21.2% to EUR 11.546 mln and its profit grew 3.1% to EUR 1.563 mln.

Founded in 2006 by several individuals, Madara Cosmetics has been listed on the Nasdaq Riga alternative market First North since November 10, 2017.