Published: 2020-04-21 15:00:00 CEST
MADARA Cosmetics
Company Announcement

In the first quarter, the turnover of AS MADARA Cosmetics increased by 25%

Inside information, 2020-04-21 15:00 CEST -- In the first quarter of 2020, the consolidated (unaudited) turnover of the Company amounts to EUR 3,228 thousand, which is a 25% increase compared to the corresponding period last year.

Despite the challenging conditions due to the impact of the COVID-19 disease (from the coronavirus), the Company has been able to continue growing and meet its first-quarter sales targets. The Company's sales channels are well diversified both geographically and by business models, and the physical sales channels are well balanced with e-commerce channels. The sales decline in some of the retail channels has been fully offset by an increase in e-commerce channels, where both the Company's own e-commerce platform and the Company's customers with an e-commerce profile are showing good results. Many customers are also successfully adapting to the market situation and increasing their presence in digital sales channels. In general, we believe that the current situation, where the popularity of cosmetics sales through e-commerce channels has sharply risen, is a positive tendency and in the medium term it will allow the Company to gain an advantage over competitors and strengthen the Company's various brand positions in key markets. Conclusion: the Company's current focus and the investments in e-commerce channel development are paying off.

By geographical distribution, in the European Union countries (excluding Latvia) a turnover increase of 18% has been achieved, in Latvia - an excellent 38% increase and sales outside the European Union in the first quarter have grown by 33%.

In the first quarter, 62% of sales were generated in the European Union countries (excluding Latvia), 33% in Latvia and 5% outside the European Union.

10% of the first quarter’s turnover is attributable to the sale of the makeup category, which has taken a firm place in the Company's product range since its launch in September last year.

Following the current trends, in the first quarter, the Company has launched the ANTI hand cleaner line, which is both a small contribution to the Company's overall sales results and the Company's response to current demand trends.

In the first quarter under the social responsibility program, in response to a request from the Ministry of the Interior of the Republic of Latvia, the Company processed free of charge 5000 liters of confiscated ethyl alcohol into surface disinfectants, hoping to make a small contribution to curbing the further spread of the virus.

The situation in the Company's main markets is expected to remain challenging to predict in the coming months. However, at the time of publishing this update, it is known that April sales targets will be met or even exceeded. The Company is working actively to make the most of the opportunities presented to it. The previously announced target of AS MADARA Cosmetics management to reach turnover of EUR 15 million in 2020 remains intact.

The shares of Madara Cosmetics are admitted to trading on Nasdaq Baltic First North Market.

The Certified Adviser for AS Madara Cosmetics is AS LHV Pank.

MADARA Cosmetics, founded in 2006, is the local pioneer in the field of natural cosmetics. In 2016 and 2017 the company and its managers were ranked among the top-10 Most Admired Business Leaders in Latvia. MADARA develops and manufactures all products exclusively at its own laboratories and facilities to ensure 100% control over processes. Further evidence of its passion for quality and perfection in every detail are the company’s ECOCERT organic certification, GMP (ISO 22716:2007) standard, and in vitro and in vivo research. For more information, visit

         Contact information:
         Address: 131 Zeltiņu Street, Mārupe district, Mārupe, LV 2167, Latvia
         Contact person: Uldis Iltners, member of the Management Board
         Phone: +371 67 470 243
         Certified advisor:
         AS “LHV Pank”
         Contact person: Ivars Bergmanis
         Phone: +372 680 2720