KRI-KRI Milk Industry has released its financial statements for the second quarter 2014.

Parent company's turnover of products amounted €31,993k against €35,047k of 2013 (a drop of 8.7%). It should be mentioned that the turnover figure as presented on the statement of comprehensive income (€42,262k) also includes a figure of €10,270k relating to sales of raw materials to outsourcing partners.

Parent company's profitability measures were as follows:

-               Ebitda amounted €4,790k against €5,902k of 2013,

-               Profit before tax amounted €4,108k against €4,781k of 2013,

-               Net profit after tax amounted €3,679k against €4,182k of 2013.

The consolidated net profit after tax attributable to parent's shareholders amounted €3,663k against €4,177k 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.

In the yogurt sector, due to outsourcing of our full production to third party production units, 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 11.3% amounting €18,267k against €20,591k of 2013.

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. In addition, we promoted the strengthening of our presence to markets abroad, such asSenegal. Ice-cream sales present a drop of 5.1% amounting €13,725k against €14,457 of 2013. This development is mainly due to weather conditions that prevailed in May and June and hindered ice cream consumption. Improved weather conditions in the forthcoming summer months, together with the increased foreign tourism, helped us mitigate losses on sales of ice cream.

As far as investing activity is concerned, within the next few weeks the construction of the new yogurt factory is to be completed. Build on the same site, inSerres,Greece, the new yogurt factory is of higher efficiency and of double capacity, compared to the factory that was destroyed by the fire of 24/12/2013. 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.