SIPEX: 9% increase in turnover driven by advance of sales in all 3 distribution channels

Business Forum

19 August, 2024 at 11:29 AM

SIPEX, one of the largest distributors of construction and finishes materials from Romania, listed on the Bucharest Stock Exchange, on the AeRO market (symbol SPX), with over 27-year presence in this segment, announces its financial results for the first half of 2024. The company recorded a turnover of RON 158 million, an increase of approximately 9% compared to the same period in 2023, driven by the advance of sales in all three distribution channels.

Irinel Gheorghe, CEO SIPEX: "The results from the first half of 2024 reflect our ability to adapt and respond effectively to market dynamics. We prioritized strengthening our market position and successfully managed challenges, from tax changes to labor shortages, obtaining the best half-year turnover in the last three years. The 9% growth in our business and the consolidation in the B2B channel encourage us to pursue our ambitious goals. We are focused on expanding our product portfolio, addressing the needs of the logistics, industrial, and infrastructure construction markets. At the same time, we are exploring new opportunities for the development of the business and sustainable growth, with the aim of reaching a turnover of €100 million by the end of 2026."

SIPEX's business growth was supported by careful inventory management, accurate sales forecasting, and diligent expense management, with positive sales developments across all three distribution channels. In the revenue structure, sales in the traditional retail channel increased by 6%, B2B channel sales grew by 14%, and sales through the store and online channel saw a 29% increase.

The net profit for the first half of 2024 was RON 3 million, a decrease of 6.6% compared to the first half of 2023, due to increased operating expenses, particularly those related to the purchase of goods, salaries, utilities, and the new minimum turnover tax. Compared to the first quarter of this year, net profit saw a significant increase in the second quarter, driven by a 28% growth in sales.

SIPEX operates with an integrated business model, organized into three business lines: sales and distribution of construction and finishes materials, services (technical consultancy), and sales of finished colored products.

Distribution is carried out through three channels:

Traditional Retail - stores of various sizes, excluding DIY (Do It Yourself) stores, with sales through dedicated agents.
Business to Business (corporate) - construction companies, developers, state or private institutions, craftsman teams, and individuals who build or renovate their properties. Since 2019, the company has had a dedicated channel for this segment, www.sipexcomenzi.ro, aimed at simplifying the sales process to existing partners and reducing operational costs by providing self-service facilities.
Company-Owned Online Store - with a mobile, tablet, and laptop application. The application allocates orders to the nearest work points, ensuring the delivery is made in the shortest possible time.

Throughout its 27 years of activity, SIPEX has built long-term partnerships, employs approximately 300 people, owns 12 logistic centers, and operates a fleet of 191 vehicles. The company's operating and sales points are in: Brașov, Bucharest, Cluj, Craiova, Iași, Ilfov (Pantelimon), Focșani, Piatra Neamț, Prahova (Ariceștii Rahtivani), Râmnicu Vâlcea, Suceava, and Timișoara.

SIPEX was listed on the Bucharest Stock Exchange, on the AeRO market on June 3, 2022, following a private placement through which it raised RON 10.6 million from 54 investors. Starting March 20, 2023, SIPEX's shares have been included in the BETAeRO index.