Alcoy Korott company dedicated to the manufacture of food supplements and phytotherapy products, among others its turnover fell 26% last year to 13.8m euros, due to its strong dependence on its main client, Mercadona. The low volume of orders from the Juan Roig chain causes the company to try to diversify its customer portfolio; this strategy has led the company to join the Euro Vital Pharma group recently, which will enable it to reach new markets and improve its results in the future. year.
Taking into account that the turnover came from 18.7 million Euros in the previous year, Korott made public the results of 2021, a period when the turnover saw a significant decline. exercise is also Closed with a negative balance of 1.2 million EurosIt represented a 133% decrease.
The company’s management report attributes these disruptions to the loss of business with Mercadona, the company’s main customer. working hard to reduce this addiction. A step considered decisive in this regard was its merger with the German Euro Vital Pharma Holding in June 2021, which allowed the creation of a new Europe-wide group specializing in the production and marketing of food supplements. dietetics and other parapharmacy products, especially private label.
operation, especially uncovered a conglomerate with a total turnover of more than 100 million Euros per year, with around 300 employees and a customer network of more than 10,000 supermarkets, pharmacies, parapharmacies and specialized centers across Europe. The aim of the Alcoy company is to be the industrial and R&D leg of this holding, as Euro Vital’s own production capacity is quite small so far.
This integration was at the time Korott’s Buy PowerGym sports nutritionist and most recently Viveplus, the Madrid group dedicated to the distribution, marketing and sale of dietary foods and nutritional supplements.
However, company sources explain that while these operations bear fruit in 2021 and 2022, Mercadona’s dependency continues and this is reflected in its income statements. Hopes for what will happen after 2023 have been pinned, because given the company’s financial solvency and acquisition of additional and alternative customers to the main client, The turnover, which is expected to continue in the coming years, is expected to enter an increasing line..
The same sources say that although dependence on Mercadona has begun to decline, by the end of this year It will continue to account for approximately 30% of the total turnover.