KRI-KRI Milk Industry has released its interim financial statements for the second quarter 2013.
Parent's company turnover amounted € 35,384 th. against € 30,606 th. of 2012 (a rise of 15.6%), whereas the profitability measures were as follows:
- Ebitda amounted € 5,902 th. against € 6,128 th. of 2012,
- Profit before tax amounted € 4,781 th. against € 4,645 th. of 2012,
- Net profit after tax amounted € 4,182 th. against € 3,982 th. of 2012
On the group level, net profit after tax, attributable to parent's shareholders, reached € 4,177 th. against € 4,154 th. of 2012. It should be mentioned that KRIKRI DOO KUMANOVO, which was included in the consolidated statements of the comparative period 1/1-30/6/2012, it is not included in the current's period consolidated statements, since the whole participation of the company on KRIKRI DOO KUMANOVO was sold.
Profitability measures were negatively affected by increases on raw materials' prices, which led to the reduction of yogurt's gross margin by about 2.5 points, and also by increased advertising and promotional expenses.
In the ice-cream sector, where sales present a marginal reduction of 0.7%, we actively promoted the expansion of our sales network in Greece, while reconstructed our sales network in FYROM and Bulgaria. In addition, we continued the brand building of our main ice-cream brands through advertising and by promoting the “made in Greece” feature of our ice-creams, in order to address the recent turn of Greek consumers to Greek-made products.
In the yogurt sector, due to bad economic conditions, we maintain our competitive pricing strategy. Besides, we aggressively promoted the exclusive use of 100% Greek milk, coming from the local region of Serres, which is a distinctive feature of our products. Furthermore, consistent to our export-oriented strategy, we emphasize on strengthening our presence on Western Europe's markets. A recent example is the entry to UK's Greek yogurt market, by launching a trade agreement with Waitrose, a British supermarket chain. As a result, yogurt sales increased by 23,4% year on year.
As far as our investing activity is concerned, the state subsidized investing plan for ice-cream is complete by more than 50% of its total budget. Besides, the rising market shares in the yogurt market of Greece, combined with the increasing demand for Greek yogurt from abroad, led KRI-KRI's management to revise company's investment plan for yogurt. The revised plan of €8m aims to further increase yogurt's production capacity, by the summer of 2014.