Biosphere Corporation plans to increase revenue by 20% in 2025
Biosphere Corporation, a leading manufacturer and distributor of household products, plans to increase its revenue by an average of 20% in 2025 compared to 2024, reaching at least UAH 8.5 billion, according to the company’s founder and CEO, Andriy Zdesenko.
"The corporation's business is actively growing both in Ukraine and internationally. In 2024, all key business segments collectively generated around UAH 7.5 billion in revenue. Compared to the previous year, that's a growth rate of approximately 20%. We are setting the same 20% target for the upcoming year," Zdesenko stated on February 26 during the Business Breakfast event organized by Forbes.
According to him, the company was less profitable last year due to rising costs in raw materials, logistics, energy, inflation, and wages.
When asked about the company's exact profit figures, Zdesenko responded, "We need to analyze the details."
"However, we have a benchmark, and each business segment operates at a different level. For instance, our tea business, which we are heavily investing in, is currently running at a significant loss. We are investing aggressively in market expansion, advertising, and marketing, both in Ukraine and internationally. Given these efforts, we expect to reach break-even by the end of the year and start generating profit moving forward," he elaborated.
Last year, 70% of Biosphere's revenue came from Ukraine, while 30% was generated abroad.
"Our ambition is to achieve a 50-50 revenue split between Ukraine and international markets within three years. Moreover, we don't consider our European operations as mere exports. For example, in Romania, we have our own production facility, brand, sales team, marketing strategy, and headquarters in Bucharest. We see the Romanian and Austrian markets as our domestic markets," Zdesenko explained.
Speaking about the development of the Graff tea production line, which entered the Ukrainian market over a year ago, Zdesenko revealed that the company has invested around EUR 5 million in production, equipment, and raw materials.
He estimated Graff's market share at 3-5% and aims to increase it to 10% by the end of the year.
"Beyond tea production, last year we acquired an advanced plant specializing in professional cleaning products for our Biosphere Professional division. Additionally, a top executive has become a partner and personally invested in the venture," the CEO shared.
Zdesenko clarified that the plant is located in Slavutych, "near the Belarusian border."
"This acquisition brings our total number of production facilities in Ukraine to six. The new division is called IMO (Industrial Cleaning Equipment)," he said.
According to data from Opendatabot, IMO LLC (Industrial Cleaning Equipment) was registered in Kyiv in 2016. Since December 2023, Zdesenko has been the ultimate beneficial owner with a 79% stake, while Serhiy Agibalov holds a 20% share.
Biosphere Corporation has been operating in Ukraine for over 25 years. Its product portfolio includes more than 1,000 items across 16 proprietary brands, such as Freken BOK, Fainy Bonus, Vortex, Lykit, Smile, Smile Baby, Superfresh, Bambik, Novita, Lady Cotton, Alufix, PRO Service, GoWipes, Chystaya Pobeda, Pany Blisk, and PoketMon. The corporation is also an official distributor of international brands such as TORK, Selpak, and Fantom.
Biosphere's production facilities in Ukraine span a total manufacturing area of 35,000 square meters across Dnipropetrovsk, Kyiv, and Khmelnytsky regions, supported by logistics complexes covering an additional 30,000 square meters. In partnership with the French Groupe Lemoine, Biosphere also owns an 8,500-square-meter cotton product manufacturing plant in Estonia.
At the end of 2023, Biosphere launched its new FOOD division with in-house production under the Cupsoul brand, featuring tea lines such as Graff, Ritz Barton, and others.