Madara Cosmetics sells the Mossa brand for 4 million euros :: Dienas Bizness

Company MADARA Cosmetics On April 30, he concluded a deal with the Finnish company Oy Transmeri Ab for the sale of the cosmetic brand MOSSA.

MOSSA is one of the brands in AS MADARA Cosmetics portfolio and its sales amount is 4 million euros. This transaction is a significant factor in the future growth and investment of the company, and also contributes to the increase in the volume of contract manufacturing.

AS MADARA Cosmetics CEO Gunta Šulte explains: “The sales value of the MOSSA brand highlights the professionalism of the MADARA Cosmetics team in creating strong and profitable brands. I can confirm that the sale of the MOSSA brand marks a new development cycle for the company “MADARA Cosmetics” and the MÁDARA brand. Regarding the development of the MÁDARA brand, we will be able to focus even more aggressively on strategic priorities, in particular on the investment plan in attracting new talent, brand recognition and building teams locally in France, Germany, Sweden.”

Sara Rosin, CEO of the Finnish company Oy Transmeri Ab, comments on the transaction: “We are pleased to take over the ownership of the MOSSA brand and take on its further development. We already see the MOSSA brand as a strong player in the mass market segment and we will develop this growth both in Finland and elsewhere in Europe. We highly value the excellence of MOSSA products and therefore we will maintain cooperation with MADARA Cosmetics laboratory and production facility in Latvia to continue the production of existing and new products together.”

G. Šulte adds: “Considering that the sales strategy of the brands represented by MADARA Cosmetics currently primarily covers premium and e-commerce channels, while the main sales channel of the MOSSA brand is the mass market segment, the current stage of development of the MOSSA brand is beneficial for both parties involved in the transaction . As a result of the transaction, the funds obtained by MADARA Cosmetics will be able to be invested in the company’s further growth opportunities, while the MOSSA brand will carry out global integration in its segment under the responsibility of the new owner. We also appreciate the opportunity to be a fundamentally important partner in the further development of the MOSSA brand, ensuring the production of all products, which will allow us to increase the volume of contract manufacturing of our company. We will also continue to represent and distribute the MOSSA brand in Latvia.”

The co-owner of the WKND advertising agency, marketing consultant Edgars Pētersons comments on this transaction as a strategic step in the company’s development, drawing parallels with the practice used in global cooperatives: “In order to maintain the spirit of growth and creative thinking in large corporations, an appropriately formed internal atmosphere and culture is necessary, or as the definition is known in business” intrapreneurship’. A commonly cited guideline for the proportion of resources to be allocated within such a system is the 70-20-10 rule, inspired by Google’s approach. This means that 70% or most of the resources are allocated to the company’s core operations, about 20% are allocated to innovative projects with the potential to contribute to the future growth of the company’s business, and 10% are allocated to experimental projects. As a result, some of these projects integrate into the core business, while other concepts that are not related to the company’s core business or priorities are passed on, as in the case of the sale of the MOSSA brand, so that the company again effectively uses the invested funds in its growth potential.

Accordingly, I consider MADARA Cosmetics’ decision to establish a “brand laboratory” as progressive, which will allow the company to work in a structured manner on creative future projects, while maintaining the stability of the core business and providing potential for new growth opportunities.”

The representatives of “Madara Cosmetics” emphasize that the management maintains the previous guidelines, which envisage achieving at least a 10% increase in turnover in 2024 compared to the previous year, that is, achieving at least 22.25 million euros in turnover.

The turnover of “Madara Cosmetics” concern in the first quarter of 2024 was 5.5 million euros, which is an increase of 4% compared to the corresponding period in 2023.

The turnover of the “Madara Cosmetics” concern last year, according to preliminary data, was 20.234 million euros, which is 8.2% more than in 2022, while the profit of the concern increased by 42.3% – up to 1.595 million euros.

The company was registered in 2006, and its share capital is 377,058 euros. The largest owners of “Madara Cosmetics” are Uldis Iltners (23.92%), Lotte Tisenkopfa-Iltner (23.76%), Finnish “Transmeri Group Ab” (22.93%), Liene Drāzniece (6.79%) and Zane Tamane (6.35%). “Madara Cosmetics” shares are listed on the “First North” alternative market of the “Nasdaq Riga” stock exchange.