Papoutsanis reports 8.6% revenue growth to €63.7M in 9M 2026

Revenue reached €63.7 million, up 8.6% from €58.6 million in the corresponding period of 2025.

Exports accounted for 56% of total revenue, reaffirming the company’s international orientation. Meanwhile, an improvement in gross margin and higher operating earnings reflected the positive trend in its financial performance.

Gross profit increased by 12.4% to €22.7 million, compared with €20.2 million in the first nine months of 2025. The gross profit margin rose to 35.6%, from 34.4% a year earlier.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) increased by 11.4% to €9.4 million, compared with €8.5 million. Pre-tax profit reached €6.3 million, up 19% from €5.3 million, while net profit after tax amounted to €5.2 million, an increase of 9.1% from €4.8 million in the comparable period.

Double-digit growth in branded products

Branded products were the main growth driver, recording an 11% increase in sales during the nine-month period, with positive performance in both the domestic and international markets.

Domestic sales rose by 10%, while exports in this category increased by 23%. At the individual product level, Home Care stood out with growth of 21%, while Personal Care sales increased by 5%.

By contrast, the overall hotel products category recorded a 6% decline compared with the first nine months of 2025. This performance was primarily attributed to the high comparative base of the previous year, when exceptional production runs had been carried out for a specific customer during the first quarter.

Nevertheless, branded hotel products continued to grow, with sales increasing by 10% as the company expanded its customer base in Greece and abroad.

Third-party manufacturing sales increase by 11%

Performance was also positive in the third-party products category, which includes industrial sales and private-label products. This business accounts for 44% of Papoutsanis’ total revenue and recorded an 11% increase in sales during the nine-month period.

Growth was driven by the strengthening of existing partnerships and the addition of new customers. Industrial sales of soap noodles also increased by 11%, with management expecting this positive momentum to continue through the remainder of the year.

Double-digit revenue and pre-tax profit growth targeted for 2026

For the full year 2026, Papoutsanis management has reaffirmed its forecast for double-digit revenue growth. The main drivers are expected to be the expansion of existing partnerships, the development of new collaborations, continued growth in branded products and opportunities arising from changes in Europe’s manufacturing landscape.

Particular importance is attached to the prospects for third-party manufacturing and soap noodles, as changes in industrial production across Europe are creating opportunities for new partnerships and business expansion.

At the same time, higher sales, combined with targeted measures to improve cost efficiency and rationalise expenditure, are expected to deliver double-digit growth in pre-tax profit for the full year.

Net profit is also expected to increase, albeit at a slower rate, as the company completed the utilisation of tax incentives linked to its investment programmes in 2025.

Challenges to achieving these targets include geopolitical developments in the Middle East and disruptions to energy and trade flows. These conditions are keeping energy, fuel and transportation costs elevated while also putting pressure on the prices of certain raw materials.