STELIOS KANAKIS S.A. is active in the trade sector of raw materials for confectionery, bakery and ice cream and based on the National Statistical Service of Greece’s classification system (STAKOD) it belongs to the following sector:
STAKOD 51.36 “Wholesale trade in sugar, chocolate and confectionery products”.
This sector includes businesses that cover a wide range of products used as raw materials in a great selection of end products. STELIOS KANAKIS S.A. is involved in the specific field of trade in confectionery, bakery and ice cream raw materials whose end consumers are various patisserie workshops, dough product preparation units and bread industries, among others.
The wholesale trade in sugar, chocolate and patisserie materials sector is part of the wider foodstuffs sector, which is one of the most dynamic and profitable in the Greek industry. The foodstuffs sector accounts for 21% of Gross Product Value.
Growth of the sector is due to a large extent to the tendency of consumers to purchase processed products, foodstuffs, food and patisseries items, a trend that is not expected to drop off. Domestic consumption of patisserie products has been steadily increasing while per capita consumption continues to be at low levels compared to figures in other European countries with the result that there are high growth margins.
Demand for confectionery raw materials is a result of demand for the end product by consumers. Over recent years a tendency for consumers to prefer sweets and high quality products has been noted in contrast with the predominance of ‘traditional’ sweets during the previous decade. Various workshops and patisseries have adapted their products accordingly placing greater emphasis on the quality element of their materials, while at the same time developing new product categories.
Moreover, new consumer standards which demand use of low fat ingredients, ingredients processed in an environmentally friendly manner, etc. have over recent years been placed in a significant position in the confectionary raw materials market, which has significant prospects for growth.
These factors resulted in the demand for high quality raw materials to increase significantly. Such materials are primarily produced abroad. Foreseeing this emerging trend in consumer preferences, the
Company entered the specific high quality raw materials market in time and undertook to represent leading foreign firms.
The sector in which the Company is active is characterized by the existence of major producers – suppliers which cover only specific items such as butter, margarine and so on, and at the same time, small to medium sized trading companies which cover a larger range of products and wider procurement needs in terms of confectionery products, making them direct competitors of STELIOS KANAKIS S.A.
The table below shows the turnover of the largest trading companies of the sector in the Greek market.
|PURATOS HELLAS S.A.||25.604||24.757||23.240||21.467||20.318||19.595||19.413|
|STELIOS KANAKIS S.A.||20.182||19.743||18.577||18.082||17.897||17.010||17.102|
|LAOUDIS BROS S.A.||17.893||17.189||16.392||16.150||15.718||14.762||13.989|
|SEFCO ZEELANDIA S.A.||19.333||17.852||16.660||15.523||15.417||14.245||12.674|
Source: Published Financial Statements
Moreover the table below shows the ranking of companies in the sector based on pre-tax profits.
|STELIOS KANAKIS S.A.||3.000||3.129||2.985||2.616||2.336||2.089||1.375|
|SEFCO ZEELANDIA S.A.||2.626||2.026||2.489||1.209||1.141||1.168||812|
|LAOUDIS BROS S.A.||1.359||896||1.000||1.313||1.054||1.002||514|
|PROFITS FOR STELIOS KANAKIS S.A.||14,86%||15,85%||16,07%||14.47%||13,05%||12,28%||8,04%|
|PROFITS FOR SECTOR||10,01%||8,62%||9,39%||7,96%||7,39%||7,72%||5,47%|
*In thousand euros.
Source: Published Financial statements
It is to be noted that the sample of companies used, consists of companies with similar operations to those of STELIOS KANAKIS S.A., which produce or trade in a large range of products and which target the same purchasing groups (confectionery shops, bakeries, etc.).
The Company has successfully managed to stand out from the competition. This has occurred due to the high quality of its products, the awareness of the Company’s name, its long-term relations with leading foreign suppliers as well as with its customers. Moreover, the Company has developed the appropriate corporate infrastructure for promoting high quality products while at the same time has an effective sales, distribution and technical support network.