Food Blends activity now occupies significant space in ELTON’s growth planning, with management setting a target of doubling turnover from blends and launching investments to increase production capacity.
Speaking to Euro2day.gr, Group General Manager Thanos Iliopoulos and CEO Alkistis Papathanasiou explain what ELTON saw in the acquisition of N. Lekos, how it plans to develop this specific activity in Greece and in the group’s other markets, and what the next steps are.
At the same time, they give a “clearly positive” signal for the first-half results, confirm the decision to enter Hungary during 2026, and reveal that new potential acquisitions are also on the table.
The strategy behind the Lekos acquisition
The starting point of the investment in Lekos is linked to ELTON’s very business model. The group already has a strong presence in the distribution of chemical raw materials and a broad customer base in the Greek market.
“We are distributors of chemical raw materials. Looking at Greece, acquisitions of competitor companies do not have specific added value for ELTON, because essentially we end up with the same customers,” explains Thanos Iliopoulos.
Lekos had a different characteristic. In its portfolio there was the activity of specialized blends for the food industry, which ELTON did not have.
“Blends are something that we did not have in our portfolio and they create two opportunities,” notes Mr. Iliopoulos. The first is the possibility of growth in a new activity resulting in increased turnover. The second concerns the relationship created with the customer.
“Every blend we sell is an ingredient of the final product. The taste, the texture, in general how a final product turns out depends to a very large extent on the blend the producer will use,” he explains.
Thus, provided that no problems arise in supply adequacy, production, or customer service, replacing a blend that has already been successfully incorporated into the final product is not an easy decision.
“A customer will not easily remove your blend to put in a blend from a competing company. Therefore, a relationship of greater trust and a long-term relationship with customers is created”, he adds.
New products to existing customers
The next step for Food Blends moves in two main directions. The first is leveraging ELTON’s existing customer base, with the development and proposal of more products and applications. As Mr. Iliopoulos describes, the goal is for the company to be able to go to an existing customer and, beyond what it already produces, propose new products that can be created using specific blends.
The field is already broad, with blends for dairy, bakery, and meat products, while management sees significant room for further enrichment of the range.
The second direction is leveraging the group’s network. ELTON is present in six countries including Greece, and in the foreign subsidiaries detailed presentations have already been made of the blends and the process through which they can be promoted to local customers.
Their sale, however, is more complex than that of a simple raw material. Trials, small production runs, and checking the result in the final product are required before a customer decides to adopt a new blend.
Target to double blends
As regards expectations for Food Blends’ contribution over time to the group’s total turnover, Mr. Iliopoulos explains: “Today, about 60% of Lekos’ turnover (Food Blends) comes from its products and the remaining 40% from traded goods. With the absorption of the company by ELTON, the traded goods will be integrated into the group’s broader commercial activity, while the blends, which constitute its production part, will be developed separately.
For this reason, a simple comparison cannot be made as to how much today’s Lekos will grow as a company, since it will not exist in the form we know today. However, as regards blends exclusively, our goal is to double the turnover of this activity”.
For her part, Alkistis Papathanasiou believes that the breadth of the market and the possibilities for developing the product range support this goal.
“Food blends on their own have a very broad growth spectrum. We intend to enrich the existing structure and knowledge, developing new blends for various food categories.. That is why what Mr. Iliopoulos says about doubling is something we truly consider feasible”.
Investments for the next phase of growth
The momentum of the activity is already visible in production, which has recently been operating at particularly high levels. “Just think that we have been working at the peak of our production capacity for the last two months”, Mr. Iliopoulos characteristically states.
This picture is also the basis of the investment plan that has been drawn up specifically for Food Blends. The first interventions begin immediately and concern increasing the productivity of the existing unit, optimizing the facilities, and certifying storage spaces. The goal is for the production base to be able to support the greater volume of work that management expects from the development of blends in Greece and in the group’s other markets.
Part of the investments is expected to be completed by the end of the year, while the broader plan will continue through 2027.
“We are monitoring developments in Oinofyta very closely”
The priority currently given to Food Blends has shifted in time ELTON’s previous investment in Oinofyta.
“We are reassessing the group’s priorities including the investment in Oinofyta,” says Ms. Papathanasiou.
The area, however, remains steadily on the company’s radar. ELTON is monitoring developments around the Business Park and is examining how it can best leverage its presence and assets there.
“The value of the area has risen and we are looking at how we will make the best possible use of it. We are following developments very closely in order to make the right strategic decision,” emphasizes Ms. Papathanasiou.
She sees the development of the new infrastructure as an opportunity to create another strong industrial hub near Attica. “Until now the logistics center was Aspropyrgos. Now all this seems to be creating a counterweight as well,” she notes, estimating that the completion of the planning could create an organized industrial infrastructure that is currently lacking in the wider area.
How the group’s key markets are moving
Overall, management divides the markets in which ELTON operates according to their degree of maturity and the possibilities for further growth.
Greece, Romania and Serbia fall into the first category, as mature and strong markets that contribute significantly to the group’s profitability. Management places the activity in Romania and Serbia among the two strongest players in the respective markets. In Romania, despite the difficult economic environment, ELTON continues to see significant room for growth, while the subsidiary has maintained an upward course even in periods when the distribution sector came under pressure.
As regards the case of Turkey, the possibilities are great, but management is choosing more careful steps due to the financial environment. The activity is growing at rates of 15%-20% annually, while, as Mr. Iliopoulos characteristically states, “if we decided tomorrow to invest in Turkey, we could achieve a significant increase in turnover and an improvement in results”. However, the current circumstances are not considered suitable for taking such a risk, as “many companies have lost significant amounts of money in Turkey”.
In Ukraine, ELTON’s presence remains profitable, with the group waiting for the opportunity that will arise after the end of the war to move more dynamically.
In Bulgaria a full reorganization has been completed into a more “lean” model. As management notes, from next year the changes are expected to begin to pay off, with 2027 being the year in which it is estimated that the new picture will by then also be visible in the financial figures.
Finally, a new stop in ELTON’s geographic footprint is expected to be Hungary. Management has now made the decision to enter this specific market within this year and is examining the model through which the move will be carried out, within 2026.
“Clearly positive” and “very satisfactory” the first half
Particular weight is also attached to management’s message regarding ELTON’s financial course, characterizing performance in the first half as “very satisfactory”.
It is recalled that, at group level, sales increased by 5.5% to 94.92 million euros, while EBITDA strengthened by 35.2%. Profit before tax amounted to 4 million euros, up 74.4%, with the gross profit margin rising to 17.6% from 15.5% a year earlier.
Acquisitions under review
At the same time, interest in acquisitions remains active, with specific cases already under evaluation. “We have in mind some cases that we are examining. I cannot say anything more at this moment,” Mr. Iliopoulos characteristically states.
Investments, however, are not limited to production or geographic expansion. ELTON is also investing in new executives and in systems that cover the group’s operation as a whole, from ERP and CRM to artificial intelligence applications.
Management places particular emphasis on the latter, making it clear that the goal is not simply the adoption of AI as a trend, but its utilization where it can have a real operational benefit.
Management’s message, however, is that the moves do not stop here. Entry into Hungary has been decided, new acquisitions are already under review, while investments in production, systems, and human resources continue.
“Things are happening,” as Mr. Iliopoulos characteristically put it, leaving open the possibility of news from the group in the coming period.