SIPEX, over 5% increase in turnover, supported by a 30% sales growth in the B2B channel

SIPEX, one of the largest distributors of construction and finishes materials from Romania, listed on the Bucharest Stock Exchange, on the AeRO market (stock symbol SPX), with a 26-year presence in this segment, announces its financial results for the first half of 2023. The company recorded a turnover of 145 million lei, a 5.5% increase compared to the same period in 2022, supported by the advance of sales in the B2B channel by over 30%.

“We continued to strengthen the B2B segment, which accounts for over 40% of our turnover, and we recorded an increase in the number of clients served. In the same direction, we established partnerships to expand the range of products distributed through our 12 logistic centers nationwide. We adapted to the market context and achieved the best semester in terms of turnover for the company in the last three years, serving over 2,900 clients and maintaining our trajectory of a profitable company year after year. We expect to continue this upward trend, and for the third quarter, we anticipate even better results compared to the same period of last year,” says Irinel Gheorghe, CEO of SIPEX.

The growth of SIPEX’s business was supported by careful inventory management, accurate sales forecasting, as well as prudent management of expenses.

The net profit realized was 3.32 million lei, a decrease compared to the first half of 2022, due to increased operating expenses, particularly in relation to merchandise costs. Compared to the first quarter of 2023, the net profit saw a significant increase in the second quarter, driven by the growth in sales volume.

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Considering the nature of SIPEX’s business activity, the main expense category (accounting for 84% of total operating expenses) is represented by costs related to goods, which increased by 14% in the first six months of 2023.

The company 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 own 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 used application allocates orders to the nearest work points, ensuring the delivery is made in the shortest possible time.

The detailed report including the preliminary financial results can be found here.