KRI-KRI Milk Industry has released its annual financial statements for the fiscal year 2014.

Parent company's turnover of products amounted €62,950k against €67,476k of 2013 (a drop of 6.7%). It should be mentioned that the turnover figure as presented on the statement of comprehensive income (€77,150k) also includes a figure of €14,200k relating to sales of raw materials to outsourcing partners.

Parent company's profitability measures were as follows:

-  Ebitda amounted €6,192k against €7,575k of 2013,

-  Profit before tax amounted €4,657k against €5,344k of 2013,

-  Net profit after tax amounted €3,571k against €5,125k of 2013.

The consolidated net profit after tax attributable to parent's shareholders amounted €3,577k against €5,120k of 2013.

It should be mentioned that current period's income statement includes a non-recurring amount of €976k resulting from the settlement of insurance claim.

Following the unfortunate event of the fire of 24.12.2013 that destroyed our yogurt production facilities, our investment activity focused on the construction of a new, modern yoghurt factory. The construction of this new factory is already completed and it is expected to support the company's growth potential in Greece and abroad. Build on the same site, in Serres, Greece, the new yogurt factory is of higher efficiency and of double capacity, compared to the factory that was destroyed by the fire. The total budget of this investment amounts €20,027k and it is state subsidized by 30%. Thus, a state subsidy of €6,008k is expected.

In the yogurt sector, our full production was outsourced to third party production units for 8.5 months in 2014. During that time, we focused on maintaining smooth supply of the market and seamless delivery of customers' orders, trying to keep stock-outs to minimum. However, the disturbance of the yogurt supply chain caused temporary stock-outs, leading to loss of sales. Thus, yogurt sales dropped by 11.1% amounting €39,913k against €44,893k of 2013.

With our new factory, we are looking forward to high growth in our yogurt sales. We have already signed new agreements with customers from abroad, such as in Belgium with the super market chain “Collruyt”, and also in UK with a large national super market chain where yogurt deliveries are about to start in a few days' time.

In the ice-cream sector, the economic climate continues to affect adversely the market size. However, in line with our strategy, we actively promoted our sales network expansion. Ice-cream sales present a slight increase of 2.0% amounting €23,037k in 2014 against €22,583k of 2013. For the next ice-cream season, KRI-KRI is launching a new set of frozen yogurt ice-creams. This product category aims, mainly, to the touristic areas of Greece and also to the markets abroad, where the Greek frozen yogurt theme seems to have a strong growth potential.