KRI-KRI SA Milk Industry has released its annual financial statements for the financial year 2022. Turnover amounted to €171.88m compared to €134.60m in 2021 (an increase of +27,7%).

Basic profitability measures were as follows:

• Gross profit amounted €31.46m compared to €41.17m in 2021,
• EBITDA amounted to €8.86m compared to €20.96m in 2021,
• Profit before tax amounted to €3.83m compared to €16.53m in 2021,
• Net profit after tax amounted to €3.18m compared to €13.21m in 2021.

In the yogurt market, our sales increased by +29,5% in value and +17,1% in volume. In the overseas markets, yogurt exports show a strong double-digit increase by +32,7% exceeding €72,5m of sales (53,8% of total yogurt sales). Additionally, there was a significant increase from the Italian market (+37,6%), the United Kingdom (+26%), and from other countries such as Sweden, Germany and Austria.

In the yogurt market in Greece, our sales achieved a double-digit increase by +26,0%, exceeding €62m. Due to the current situation of high inflation conditions, there were significant upheavals in the overall yogurt market. Currently, the overall value of the yogurt market returned to positive figures showing an increase of +4,6% (IRI data in value, January - December 2022), despite the decrease in volume. Τhe market share of KRI-KRI yogurts is now 17,0%, increased by +0,8 p.p. [IRI data in value, Jan.-Dec. 2022]. Furthermore, under the current situation, the market share of private label yogurts is strengthening, because of the shift of consumers to value for money products. This is expected to benefit KRI-KRI, as it is the largest producer of private label yogurts in the domestic market.

In the domestic ice cream market, our sales show a strong double-digit growth of +14,7%. This is mainly due to the expansion of the sales network and the launch of the new premium range of Master Rich ice creams, combined with the strengthening of tourist flows from abroad. KRI-KRI's ice cream market share increased by +0,5 p.p. in volume (15,2%) and decreased by -0,1p.p. in value (15,5%) [NIELSEN data, Jan.-Dec. 2022].

The increased prices of raw materials and energy led to the reduction of profit margins, as a result of the company's conscious decision to support the consumers, farmers and employees during this difficult period.

More specifically:

- Consumers: effort to maintain the selling prices of yogurt and ice cream products in a specific level, despite the continuous increases in the prices of raw materials, transportation and energy costs.

- Raw milk farmers: fair remuneration to milk producers by offering competitive market prices for raw milk.

- Employees: provision of horizontal support to all our employees using “inflationary allowance” schemes and targeted salary increases in low-wage employees.

- Environment and energy saving: invest in a biogas unit and a photovoltaic park aiming to reduce the company's environmental footprint and at the same time to save energy in order to reduce the production cost.

In relation to KRI-KRI's investment activity, the company has developed, and it is implementing investment projects aiming to increase production capacity, as well as technological upgrading, of both yoghurt and ice cream factories. In the financial year 2022, total CAPEX exceeded €8,7m. In the financial year 2023, KRI-KRI will implement investment projects amounting to approximately €20m.

KRI-KRI's Senior Management is highly optimistic about the improvement of the company's financial results in 2023, despite the current demanding economic and business environment. In the current financial year 2023, sales are expected to continue their upward trend, showing a double-digit growth rate so far. Based on Senior Management's estimate, total sales are expected to reach €200m in 2023 compared to €172m in 2022. At the same time, a significant improvement in profit margins is expected. Based on Senior Management's estimate, EBIT margin for 2023 is expected to reach 2021 EBIT margin level i.e. 12.4%.

In relation to KRI-KRI's dividend policy, despite this year's reduced level of profits, the BoD decided to keep a constant dividend level, proposing to the Annual General Meeting of the shareholders a dividend distribution of a gross amount of €0.20 per share. Part of that dividend payment will be covered by previous years' profits. Dividend distribution is subject to the approval of the Annual General Meeting of the shareholders.