Published: 2019-05-14 14:28:52 CEST
MADARA Cosmetics
Annual report

AS MADARA Cosmetics Publishes 2018 Audited Annual Report

Inside information, 2019-05-14 14:28 CEST -- AS MADARA Cosmetics publishes its audited unconsolidated and consolidated annual reports for the 2018 financial year. The reports are available in the attachment (in English).

The reporting 2018 year for MADARA Cosmetics AS has been dynamic, the Group has continued its rapid growth in major sales channels. The reporting year has been important with the introduction of new, innovative products on the market. It has been a significant contribution to the growth and reputation of the Group, which has reaffirmed itself as one of the most innovative companies in the industry in Europe. In 2018, several large-scale development projects were launched. One of the most significant projects of the last 5 years is the development of a natural certified makeup line. The Group has also continued active work and invested in the brand recognition in foreign markets, creating positive conditions for future growth.

In 2018, the Group has successfully worked on the sales channels developed in previous years, reaching a 29% increase in turnover compared to 2017. The turnover of the Group has increased along with increase of profit to 1,52 million EUR after taxes, which is an increase of 21.7% compared to previous year. In 2018, the Group continued to improve and automate the production process at the plant in Marupe, 131 Zeltinu Street, resulting in the gross profit margin increase from 62,9% in 2017 to 63,5% in 2018. During 2018 the total investments have been made in the amount of 321 000 EUR in order to improve the production process. Improvement of the production process will be continued further in the next years. 

The production capacity of the Parent Company is sufficient to sustain growth at its current pace.

The production capacity of the Parent Company is sufficient to sustain growth at its current pace. The 2018 year is important for the Group with the successful launch of new products in the trade markets. The main achievement is the introduction of a mineral-based sunscreen range, which has been one of the most successful new product launches in recent years. The sun care range has been developed further, and three new products of this category have been launched in the market in 2019: SUN20 Weightless Sun Milk SPF20, SUN15 Beach BB Shimmering Sunscreen SPF15 and FAKE IT Natural Look Self Tan Milk. Sun protection products will be also introduced in the MOSSA brand. In the reporting year, work on product research and development has been successful. Work on the development of functional hair care products has been successfully completed. These products will complement the existing hair care range of the MADARA brand, offering specific solutions for hair growth, volume, texture and resistance, as well as for reducing scalp irritation and preventing dandruff. Three new hair care products have been launched in the first quarter of 2019. 

In 2018, special emphasis was put on the development of e-commerce system and implementation of IT projects with the aim of automating various business processes. The existing e-commerce system has gained a number of significant improvements and tools to enhance its performance. Regarding IT projects, the introduction of a business intelligence system will help to speed up data processing and analytics. In total, EUR 280 000 were invested in the development of e-commerce system and IT projects during the reporting period.

In the following years, the growth of the Group will be based mainly on the development in foreign markets – the activities will be strengthened in the existing export markets and will be expanded in several new markets. In order to achieve this goal, the Group company’s organization has been improved and 25 new job positions have been established in 2018. Group’s organization improvement will continue in the upcoming years.


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