DROMEAS: The U.S. Market as a Pillar for Growth – Debt Reduction and Entry into Amazon

With the development of strategic partnerships abroad, focusing on the American market, with innovative investments and the improvement of its financial position, DROMEAS celebrates 45 years of successful activity in the furniture industry.

The Serres-based furniture company, founded in 1979 by the three Papapanagiotou brothers – Athanasios, George, and Ioannis – is highly outward-looking, now exporting 75% of its production and competing with top international companies in Germany, Albania, the Middle East, Bulgaria, and Belgium. To date, no other Greek company has exported office furniture on this scale, and DROMEAS is the exclusive supplier to the European Union until 2027.

Annual investment rate: €1.5 million

As part of its growth, DROMEAS continues to invest in new machinery at a rate of €1.5 million per year. In the last five years, the company invested €6.5 million and launched new products targeting major international markets, such as AMAZON, where it has been active for a year, the French company OFFICE DEPOT, the German company AZOFFICE SOLUTIONS, CERN, and American construction firms. EBITDA is expected to exceed 25% with sales reaching €40 million in the coming years.

The company’s success to date is mainly due to vertical integration of production, more than 30 international patents, and its personnel – particularly technicians and department heads – as stated by the President and CEO, Athanasios Papapanagiotou, at the anniversary event held in Thessaloniki. He highlighted that employees grew from 30 to 340, covered space expanded from 600 sq.m. to 50,000 sq.m., sales increased from €0.15 million to €32 million, and EBITDA rose from €20,000 to €7.5 million.

Goals for the coming years

CEO Kostis Papapanagiotou outlined the company’s plans for the coming years. DROMEAS is innovation-oriented, developing products that meet modern needs and offer smart solutions for the workplace. For example, the new “Triplo” desk features compact packaging for transportation, and the modular “Syntheka” storage system is assembly-free and expandable without tools.

The company is also expanding international sales channels, strengthening its global presence through strategic partnerships and leveraging new challenges brought by globalization. The American market, according to Papapanagiotou, could serve as a pillar for the company’s growth in the coming years. “Our strategy includes penetrating new digital spaces, developing e-commerce, and enhancing our presence on major online sales platforms. Participation on Amazon with new products aims not only to increase short-term sales but also to boost brand recognition in countries such as France and Germany,” he stated.

Digital transformation is already underway. A new B2B platform was recently launched, combined with streamlined product coding, serving as a tool for product search, order entry, and partner support. DROMEAS invested €6.75 million in the past five years for upgrading and acquiring new machinery across all production departments.

Reduction of bank debt

Importantly, DROMEAS has significantly improved its financial position, reducing long-term bank debt from €23.3 million in 2016 to €13 million in June 2024 – a 45% reduction in just 7.5 years, made possible by the company’s successful growth and rising sales. “Our goal is to continue this path, ensuring the company remains healthy and sustainable in the long term,” Papapanagiotou emphasized.

From caravans to European furniture

DROMEAS was founded in 1979 producing foldable caravans, inspired by a trailer that expanded to create more space after the major Thessaloniki earthquake.

At the same time, the investment plan was submitted under the development law, and the first investment started in 1980. However, in 1986, caravan production was halted due to insufficient working capital, caused by year-round production but sales only over 2–3 months. Another problem was high import duties on components compared to ready-made caravans.

The company then shifted to office furniture, which seemed easier to produce but required thousands of product codes.

DROMEAS achieved its first major success in 1987, winning a competition by OTE for office furniture and chairs for 4,700 workplaces. In the 1990s, the company focused on public tenders, banks, and projects such as renovations and creation of hundreds of new bank branches domestically and abroad. The collapse of the Eastern Bloc created opportunities for private companies requiring office space and furniture.

DROMEAS expanded rapidly in Bulgaria during this period. By the end of the 1990s, sales reached €11.2 million, allowing the company to apply for and join the stock market in November 2000, raising €23.5 million by offering 23.8% of its shares. This capital allowed vertical integration of production from 2001 with investments in wood, metal, aluminum casting, plastics, metal painting, and mold construction.

This move was necessary as the Greek manufacturing industry could not provide high-quality components. Vertical integration was challenging, requiring selection and negotiation of dozens of key machines and their integration into production. Total investment cost from 2001–2009 exceeded €40 million.

When DROMEAS completed these investments, the Greek financial crisis began, collapsing office furniture sales and causing difficulties for large competitors. In 2004, DROMEAS sales dropped to 40%, but the company won a European Union tender worth approximately €40 million over five years – a lifeline, establishing DROMEAS as the EU’s exclusive supplier from 2009 to 2027. Products had to meet EU and international standards, certified by recognized institutes.

“Our ultimate goal is to successfully continue this path and maintain, as far as possible, the family character of the company. Our motivation has always been and will remain contributing to society and the Greek community, placing employee welfare at the center,” Papapanagiotou concluded.