Greek food manufacturer E.I. Papadopoulos SA ended 2025 with sales above €250 million, but the company’s top-line momentum came under pressure from rising costs, slimmer margins and a heavier investment cycle as it advanced a major upgrade of its Volos factory, home to its Caprice wafer line.
Revenue Growth Came At A Margin Cost
According to the company’s 2025 financial statements filed with Greece’s General Commercial Registry, turnover increased 3.7% to €252.52 million, from €243.44 million a year earlier. That growth, however, was not matched by profitability.
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Pre-tax profit declined 12.95% to €8.68 million, while net profit fell 17.36% to €6.94 million, reflecting a year in which higher input and operating expenses absorbed much of the benefit from stronger sales.
Cost of sales rose to €147.51 million from about €139.93 million in 2024, pushing gross profit only modestly higher, to €105.01 million. The gross margin narrowed to 41.6% from 42.5%, while operating profit slipped to €9.21 million from €10.65 million.
Payroll also moved sharply higher, climbing 12.5% to €53.29 million as the workforce expanded to 1,796 employees, up from 1,672 at the end of 2024.
Input Inflation Continued To Weigh On The Business
The company said it remained under pressure from raw materials and other operating costs. Flour and grain prices eased slightly during the year, and sugar costs also softened. But cocoa and cocoa derivatives stayed elevated, reflecting tighter production in key producing markets.
Packaging, energy, storage and transport costs also remained high, underscoring the broad inflationary backdrop facing industrial food producers across Europe. For a business with a wide branded portfolio and complex logistics footprint, those pressures can quickly erode pricing gains.
Broader Product Mix Supported Sales
Turnover growth was supported by a broader product mix. Of total sales, €233.88 million came from products manufactured by the company, compared with €227.41 million in 2024. Merchandise sales rose to €17.42 million from €15.02 million, while a further €1.22 million came from raw materials, materials and by-products.
Papadopoulos said it maintained its leading position in biscuits, while cereal bars also performed well. Sales of rusks, breadsticks and Krispies strengthened, and the company expanded its packaged bread range with the launch of TOST Psicha.
The brand also retains a strong presence in Cyprus, where Vassos Eliades Ltd, Vassos Eliades Ltd, imports and distributes Papadopoulou biscuits. The group says the products are available through hypermarkets, supermarkets, grocery stores and kiosks across the island, while Caprice, Digestive and Petit Beurre have become established names in the domestic retail market. Papadopoulou products are also sold by Cypriot retailers such as Alphamega and through Cyprus Duty Free at the island’s airports.
Working Capital Tightened As Inventories Rose
Higher activity levels were also reflected in working capital. Inventories increased 21.7% to €22.86 million at the end of 2025, from €18.78 million a year earlier. That included €9.58 million in finished and semi-finished goods and €11.93 million in raw materials and consumables.
The stock build reduced operating cash flow by €4.08 million, contributing to a fall in net cash generated from operating activities to €7.46 million from €19.67 million in 2024. Cash and cash equivalents subsequently dropped to €5.66 million from €13.75 million at the end of the previous year.
During 2025, the company spent €8.63 million on tangible and intangible assets and paid €4.76 million in dividends. The board has proposed a further €3.43 million dividend for 2025, subject to shareholder approval.
Bank borrowing stood at €23.3 million at year-end, broadly in line with €23.8 million in 2024. But the decline in cash lifted net bank debt to about €17.64 million from €10.05 million. Equity increased to €151.68 million from €147.47 million.
A Larger Investment Cycle Is Underway
The results come as Papadopoulos prepares a much larger capital programme at its Volos production site. The company is investing €59.6 million to modernise the plant and expand capacity, with the project covering new equipment and greater automation through artificial intelligence and robotics. Additional staffing is also part of the plan, which is tied to the company’s export ambitions. Naftemporiki has also reported on the project.
Capital expenditure was already picking up in 2025, with additions to tangible fixed assets reaching €8.39 million, including €4.39 million in machinery and equipment. Assets under construction rose to €4.22 million from €1.62 million in 2024.
Investment is also continuing at the company’s Thessaloniki plant, where new equipment is being installed in the municipality of Delta. Meanwhile, projects with a combined budget of €46.27 million had been completed by the end of 2025 under Greece’s development law 4399/2016. Those projects qualify for €11 million in support through tax-exempt reserves, of which €4.5 million had been used by year-end.
Across its wider investment programme, Papadopoulos said it will continue to focus on production equipment, infrastructure, new products, digital transformation and training in new technologies. The company operates four factories in Tavros, Thessaloniki, Volos and Oinofyta, along with three distribution and storage centres in Aspropyrgos, Thessaloniki and Volos.
Looking Ahead To 2026
Management said cost conditions remained challenging entering 2026, citing geopolitical tensions in the Middle East and their impact on energy markets and supply chains. Natural gas and electricity prices have increased, while some packaging materials have also become more expensive. Higher fuel costs have added to transport and warehousing pressure.
The company said it will continue its commercial and pricing policy in an effort to offset those increases and protect margins.
Property Restructuring Strengthens The Operating Base
Papadopoulos also completed a major restructuring of its property holdings during the year. The company absorbed I.K.E. Akinita SA, bringing three adjoining Tavros properties into the operating business with a combined estimated value of €28.55 million.
The properties, which Papadopoulos was already using while paying annual rent of €1.27 million, include the site housing its main production activity on Petrou Ralli Street. The merger also eliminated two bond loans totalling €7.7 million, for which Papadopoulos itself was the sole bondholder.
The net value transferred through the transaction was assessed at €20.88 million, and the merger was accompanied by a €4.72 million increase in share capital to €15.22 million.
