MADARA Cosmetics Eyes Middle East Expansion and Continues Innovation Investment
MADARA Cosmetics, a Northern European cosmetics manufacturer, is strategically expanding its focus to the Middle East, with Saudi Arabia identified as a key target market. This expansion is coupled with ongoing investment in product development and e-commerce initiatives, aiming for continued growth despite recent financial challenges.
Middle East Expansion Strategy
According to Gunta Šulte, CEO of MADARA Cosmetics, the company sees significant growth opportunities in the Middle East. Beyond Saudi Arabia, MADARA Cosmetics is evaluating potential in Kuwait, Oman, and the United Arab Emirates. Šulte emphasized that establishing business-to-business (B2B) partnerships in these regions requires a deliberate and phased approach due to varying regulations and market specificities. The company prioritizes markets where the brand resonates and long-term, financially sustainable collaborations are possible.
In addition to the Middle East, MADARA Cosmetics is also exploring opportunities in Southeast Asia, North Africa, and the United States.
Investment in Innovation and Product Development
MADARA Cosmetics is committed to enhancing operational efficiency and technological advancements. The company is investing in new production solutions, with a particular emphasis on expanding its lip product line, developing “stick” format products, and creating skincare innovations based on scientific research.
Financial Director Tatjana Nagle revealed that MADARA Cosmetics invests approximately €200,000 annually in new product development, excluding employee costs. Including personnel expenses, the total investment in innovation reaches nearly €1 million per year. Approximately 20% of these investments are recouped through funding from various European Union projects supporting innovation.
E-commerce Focus and Financial Performance
In 2026, MADARA Cosmetics will continue to prioritize its e-commerce strategy even as diversifying its sales channels. The company projects a turnover of at least €25.54 million for the year.
Preliminary data indicates that MADARA Cosmetics’ turnover in 2025 reached €23.217 million, a 7.9% increase compared to 2024. However, the company reported a loss of €208,118 in 2025, contrasting with a profit in the previous year. In 2024, the company’s turnover was €21.522 million, a 6.4% increase from 2023, with profits reaching €5.436 million – a 3.4-fold increase.
Company Overview
MADARA Cosmetics was established in 2006 and has a share capital of €378,298. Major shareholders include Uldis Iltners (23.84%), Lote Tisenkopfa-Iltner (23.68%), Finnish Transmeri Group (22.86%), Liene Drāzniece (6.75%), and Zane Tamane (6.19%). The company’s shares are listed on the “First North” alternative market of the Nasdaq Riga stock exchange.
As of March 9, 2026, Gunta Šulte serves as the Chief Executive Officer of MADARA Cosmetics, having assumed the role in May 2023. The Org
Uldis Iltners, co-founder and current member of the Board, is transitioning his day-to-day management responsibilities to Šulte, allowing him to focus on the company’s development strategy and new business ventures. Marketscreener