KORRES / FINANCIAL RESULTS 2011

 

SALES INCREASE AND NET PROFIT DECREASE FOR 2011

 

• SALES INCREASE IN GREECE & ABROAD
• MARKET SHARE GROWTH IN GREECE
• EXCEPTIONAL ONE-OFF IMPAIREMENT TEST & DEPRECITION AFFET NET PROFIT

 

Despite the adverse financial environment, 2011 closed with sales and market share growth [Pharmacy Network] in Greece for the KORRES Group; outside Greece, the Group has further strengthened its international presence with its export sales increasing by 15% [in fact the sales growth for priority markets such as Germany, Spain and Russia was 18%]. Operational profitability also improved yet the net profit was affected by an exceptional one-off impairment test

and depreciation effect.

 

More specifically, sales for the Group reached 42,6m euro. For consistent comparison with 2010, it is important to note that there have been changes in the way the Group's US activity is consolidated as a result of the transition period completion in line with the distribution agreement with the Johnson & Johnson Group and the beginning of the distribution by Johnson & Johnson in this market. Excluding the consolidation effect relating to the US market from the 2010 turnover, translates into a 2% increase in consolidated sales for FY2011.

 

The Group achieved a 6% sales increase in Greece alone [Pharmacy network], enhancing its market share by 50 bps, reaching 10% in 2011 vs. 9.5% in 2010. With regards to the operational profitability, the Group's EBITDA amounted to 7,6m euro vs 8,3m euro in 2010.

 

It has to be highlighted that the Johnson & Johnson know-how & royalty proceeds in 2011 were 2.3m euro vs. 3.3euro in 2010 (contract phasing). Again for consistency, if this contract-related phasing was excluded, profit before tax, interest and depreciation (EBITDA) in 2011 would correspond to a 2% increase vs. 2010. KORRES will continue to be receiving royalties as part of its agreement with Johnson & Johnson, maintaining thus a positive impact on its Group earnings.

 

Net profit after tax and minority rights for 2011, reached -3,4m euro from 2,3m euro in 2010, due to the exceptional one-off impairment test effect and depreciation materialized by the Group given the current negative economic environment and forecasts as well as the Johnson & Johnson revenue phasing.

 

Operational Cash Flow got to 5,5m euro  in 2011 from 6,9m euro in 2010, mainly due to the Group's pre-planning for the first half of 2012.  

 

Outside Greece, the KORRES Group continues growing, through targeted initiatives focusing on its top international markets, aiming to further strengthen its presence.

 

Furthermore, the Group has successfully completed its 9.5m euro share capital increase, covered in full by ARNETA Ltd; ARNETA Ltd has obtained a 14.1% of the Group's share capital.

 

 

 

In 2012, KORRES will continue supporting its main distribution network [the brand is stocked in over 6,000 pharmacies] through an integrated plan that includes new product & category launches; print, digital and TV advertising; themed promotions and events; outside Greece, focus is placed on priority markets [US, Germany, Spain, Russia], aiming to expand its presence in pharmacies, exclusive retailers and semi selective points of sale.

 

In tune with its natural yet also high-tech skincare approach Research and Development remains a priority in the brand's continuous effort to develop skin and environmentally friendly natural problem-solving products addressing key concerns that up to now required heavy chemicals. Part of this ongoing effort is reflected in the brand's latest new launches for 2012 – an innovative hair line that does not compromise on the benefits associated with conventional haircare and its new firming and antiageing collection, Black Pine – the next step in blowing apart the theory that only conventional products work when it comes to addressing challenging needs such as ageing and hair protecting.

 

 

 

 

 

For more information:

INVESTOR RELATIONS

Athina Lagou

Τ: 213 018 8905, E-mail: athina.lagou@korres.com

                                  

PUBLIC RELATIONS

George Anthoulakis 

T (+30) 2130 188835 / E george.anthoulakis@korres.com