Papoutsanis is aiming to nearly double its sales, targeting about €150 million over the next five years. Its priorities also include improving operating profitability, expanding its international presence and pursuing acquisition opportunities.
The new five-year business plan targets an EBITDA margin of 16%. The strategy builds on the company’s performance over the past decade. From sales of €18 million in 2016, Papoutsanis reached €80 million in 2025, more than quadrupling its turnover. For the next period, management is aiming to sustain double-digit growth, with higher sales accompanied by improved profitability.
The company now believes the €100 million milestone, originally targeted for 2028, can be reached in 2027.
Most of the projected growth is expected to come from the company’s existing operations.
According to management, the four main business pillars — branded consumer products, hotel products, contract manufacturing and specialised soap noodles — can support sales of around €140 million. The remaining amount needed to reach the €150 million target is expected to come from selected acquisitions.
Alongside organic growth, Papoutsanis is keeping the door open to acquisitions. Management confirmed that discussions on potential deals are under way, but gave no further details. The manufacturer is, however, interested in products sold through selective distribution, such as personal care products.
The company is also leaving open the possibility of setting up a facility abroad.
Establishing a production base in Europe could help ensure business continuity by reducing reliance on the company’s sole existing factory. Management said this is a factor that its major customers also attach particular importance to.
The rationale is different for the United States. There, a potential production presence is linked primarily to the need to be close to a large consumer market, which could support further growth. Company management gave no further information.
The company serves more than 1,000 active customers, with several partnerships involving multiple contracts for different projects. This diversification, across both customers and activities, limits reliance on individual partnerships and makes revenues more predictable, management said in response to a question from Euro2day.gr.
Last year, Papoutsanis produced 40,000 tonnes. Management said production capacity of around 30%-50% is available to meet additional demand.
The company is pursuing its targets amid heightened uncertainty over energy costs. Management acknowledges that conditions are difficult and could deteriorate, but believes the company has mechanisms in place to protect it against extreme price fluctuations.
In this context, Papoutsanis has entered into a significant volume of hedging contracts, securing future energy prices and limiting its exposure to market volatility. Management also sees no risk, based on current information, of a shortage of natural gas that could disrupt production.
Total energy costs, including electricity and natural gas, remain below 3% of sales, even with prices currently elevated. This level is considered manageable, although it does not remove the pressure costs place on operating results. The company’s solar installations, which have been operating for two years, meet around 35%-40% of its electricity needs.