The Carioca group, a renowned Italian manufacturer of pens and pencils, has reported a remarkable financial turnaround in 2024, showcasing a 40% increase in net profit, reaching 2.5 million euros. This growth comes despite a general downturn in the stationery market, highlighting the company's successful expansion into new territories, particularly in Mexico and Northern Europe.
According to the company, sales of their writing instruments, including markers and pencils, rose by 3% this past year. This positive trend was significantly bolstered by the brand's aggressive push into emerging markets, where they found fertile ground for their products. Enrico Toledo, the CEO of Carioca, explained, "We are continuing to invest in the American continent, where we have already seen excellent results, especially in South America and Mexico." This strategic focus on international markets has proven fruitful, as evidenced by the impressive growth rates reported in various regions.
The company's EBITDA also saw a healthy increase, climbing 18% to over 5 million euros. This financial performance is particularly noteworthy given the overall revenue for Carioca increased by just 1%, totaling 36.1 million euros in 2024. The modest revenue growth indicates that while the company is performing well, the broader market conditions remain challenging.
Growth was not uniform across all markets, however. Established markets such as Spain, Turkey, and Belgium contributed positively, with growth rates of 1%, 16%, and 9%, respectively. The standout performer was Northern Europe, which experienced a staggering 66% increase in sales, a testament to the brand's successful market penetration and consumer acceptance in that region.
In addition to Northern Europe, the expansion in Central and South America has been significant, with Mexico leading the charge as a key driver of growth for the Carioca brand. The company's efforts to establish a foothold in these markets are paying off, as they continue to see a rise in demand for their products.
Looking ahead, Carioca plans to build on this momentum by relaunching its Pennarelli range, which will feature an improved washable ink. This move is aimed at capturing the interest of consumers who prioritize sustainability, as the company also intends to enhance its eco-family product line. The emphasis on innovation is crucial, especially in a market where traditional sales have been declining.
Giorgio Bertolo, the general manager of Carioca, acknowledged the challenges facing the stationery market in Italy and Europe, particularly due to a decline in student populations. He stated, "The stationery market in Italy and Europe is suffering, especially due to the drop in students. To continue growing as we have in recent years, we are focusing on product innovation and entering new markets." This commitment to innovation and market expansion is vital for ensuring the company's continued success amidst fluctuating market dynamics.
Among the products that performed exceptionally well in 2024 was the Carioca Plus line, which specifically targets teenagers and adults. The line's popularity reflects a shift in consumer preferences, as more adults engage with creative activities that require quality writing instruments. Additionally, the sales of erasable pens surged by 23% compared to the previous year, indicating a growing interest in versatile and user-friendly writing solutions.
While the overall performance of the Carioca group is commendable, it is essential to recognize the broader context of the stationery market. The decline in student populations, particularly in Italy, poses a significant challenge to companies like Carioca. As schools adapt to changing educational environments and digital tools become more prevalent, traditional stationery products may face increased competition.
Despite these challenges, Carioca's strategic initiatives and focus on international markets position the company well for future growth. By continuing to innovate and adapt to consumer preferences, the brand aims to maintain its competitive edge and expand its global presence.
In summary, the Carioca group has demonstrated a remarkable ability to navigate the complexities of the stationery market, achieving substantial growth in net profit and sales in 2024. Their expansion into new markets, particularly in Mexico and Northern Europe, has played a crucial role in this success. As the company looks to the future, its commitment to innovation and sustainability will be key drivers in maintaining its upward trajectory in a challenging economic landscape.
