Toly’s Annual Review by Chairman and CEO Andy Gatesy

This is the time of year that Cosmetic brands release their 2022 year-end figures, so in line with that I would like to share with you how Toly performed in 2022.

2022 was a year that we did not expect. After 2 years of T covid restrictions and lockdowns, the world was optimistic for 2022 with a positive outlook, but nobody expected Russia to actually invade Ukraine with the resulting global economic turmoil.

During the last few years we have lived in a world that goes from one crisis to another and in 2022 we were also faced with a world that is changing faster and faster:

• A Europe at war
• A more divided world between East & West
• A more deglobalized world
• A more collaborative world
• A more digitalised world with new marketing platforms
• A more connected world, and
• A more volatile world.

Despite this scenario, Toly’s Group sales increased by +13%, to achieve €97 million. During the year, we continued to launch many exciting new products across all our categories. These included launches not just for the legacy brands, but also for the new emerging brands as well as the celebrity and influencer-led brands.

Our vision at Toly is to create a Global Beauty Product Development Platform – an ecosystem of both internal and external capabilities - and under this platform we are able to offer global manufacturing capabilities across Europe, Asia and North America, a range of different materials, as well as new partnerships and creative services, building on our spirit of creativity, our agility and our quest to be always one step ahead.

In addition to our traditional categories in makeup and skincare packaging, we have continued to step up our innovation in applicators, and within our platform we have developed an exclusive partnership with Paperfoam and extended our range of filled products launched under our Beauty Trill Division. During 2022, we opened a new factory in Korea under our Toly Korea Manufacturing footprint with a focus on stretch IBM technology for PET bottles and jars.

In Malta, we also invested in IBM capability to support our applicator strategy and our 3D printing farm and rapid prototype lab is supporting our customers with a speed to market approach.

Our theme for 2023 is:

Pushing the Boundaries …Transforming to Succeed

Pushing the boundaries means stepping out of our comfort zone and doing our best every day, always being one step ahead. And we know that with the world changing faster and faster, going from one crisis to another, we need to transform our business to both compete and succeed in this new world. And transformation needs to go across every part of our business: from our structure, to our technologies, to the way we innovate and the way we lead our teams.

Extremely important is also our approach towards sustainability. In fact every new launch needs to have a more sustainable element whether in terms of design or materials. In 2022, we achieved the Ecovadis Gold Rating and we launched our sustainability strategy. We also invested in more energy-efficient equipment to conserve resources as well as installing nearly 1000 P.V panels on our roofs in Malta to help reduce our CO² emissions.

At Toly we remain ambitious with an ultimate goal to sell 1 billion products through our platform, but to align all employees across the group, in 2022 we launched our crazy goal which is:

“Doing our best every day – creating customers for life”

We will remain a privately owned business with a long-term vision. We will focus upon things that matter and what we can control instead of worrying about things that are outside our control and we will continue to play to win. We continue to have great opportunities to scale this business, but we must be proactive, stay agile and continue to show resilience and courage.

For Toly the future is now and when we face a challenge, let’s say yes and find a way. Thank you to all our customers, employees and stakeholders for your ongoing support. The best is yet to come.

Andy Gatesy
Chairman & CEO