Production and sale of postcards S.Brothers&Co for sale InVenture

About company

The company was founded 10 years ago and today is one of the leaders in the greeting cards market in Ukraine.

The company sells postcards and gift bags in supermarket chains (Auchan, Silpo, Novus, Knigarnya “Є”, Aurora, Epicenter, Chistenko, Librarium, etc.). Today, we are represented in 800+ locations. Very low production costs (15% percent of the sales price), together with marketing, logistics and PO costs. The business has about 50% profitability from turnover.

Status of business development

We developed the business exclusively on our own. We took out a loan for development and repaid it in full during the war, a year before the end of the loan agreement. Business during the war had a growth trend and we continue to develop it. It has grown both physically in retail market share and in dollars.

Since the business was developed on its own, it was limited in development and expansion. There are still a large number of networks where we can expand our presence, where we have not yet begun active negotiations, as well as preliminary agreements with networks either on expansion in their new segments or on the start of cooperation. The main products we sell are postcards and gift bags; we sell them in limited quantities, as we do not have enough resources for expansion (this requires additional investment).

Product Information

We sell postcards and bags of European quality. We use raw materials from Italy (paper). We order illustrations from top illustrators in Ukraine. Due to brand recognition and a good reputation among illustrators, in recent years it has become much easier to attract top illustrators for cooperation than in the beginning of the business.

Market and competitive environment

There is potential to increase the business with postcards alone by 2-3 times (over a period of 1-2 years), together with packages and other gift stationery up to 4-5 times.

We are not present in low segment networks such as Eva, ATB, Varus. This is about 3 thousand stores, and we also do not yet cooperate with the Aurora chain (it is in their more mass and cheaper segment, we began cooperation with Aurora Maxi in 2024), and this is another 1.3 thousand stores. In total, there are another 4.5-5 thousand stores where expansion is possible. You can also expand the assortment (in addition to postcards, sell gift bags, possibly notebooks and other goods). In the medium+ segment we have a leading position and our share occupies more than 40%; in some networks our sales account for 60% of all postcard sales.

Sales and promotion

We have a website, but sales through the website are not active. It plays a big role in the presentation of the company. As for the main channel, these are retail networks. The main idea of promotion within the network is unique retail equipment and the best assortment (design, quality), at the best price.

List of main assets

Remains in the warehouse, balances in partner stores, brand, website and long-term retail contracts with top chains.

Team and staff

Two founders. One is taking maximum part, the other is now minimally involved. The warehouse has one employee, and there is also an accountant on staff who deals with accounting issues and primary documentation. Printing, collection of postcards, merchandising in networks, illustrations are outsourced.

Financial and economic indicators of business

Year	Turnover, UAH	Turnover, USD	Exchange rate
2019	1 395 000	55 800	25
2020	1 453 000	58 120	25
2021	4 713 000	181 269	26
2022	7 145 000	193 108	37
2023	7 124 000	187 474	38
2024 - 1 H	4 000 000	100 000	40
Forecast 2024	8 400 000	204 878	41

* Average profitability – 50%

Reason for selling the business

The owners are located abroad. Growing a business remotely is difficult. There is a desire to close all projects in Ukraine and build a new life in exile.