KORRES / H1 2017 FINANCIAL RESULTS

• SALES GROWTH IN GREECE
• SALES GROWTH IN STRATEGIC INTERNATIONAL MARKETS
•  OPERATING CASH FLOW INCREASE

In H1 2017, KORRES Group presented a positive performance both in Greece and in targeted priority international markets, combined with further improvement of its operating cash flow.

In Greece, sales increased further by 1%, reflecting the positive results of the successful launches in the strategic skincare and sun care categories. High double digit growth +32% was recorded by the Group in targeted priority markets in Europe – namely Germany, Norway, France and UK. In the US, the key distribution channels, such as Sephora stores, Sephora in JCPenney and the korresusa.com e-shop, registered a significant sales increase.

KORRES Group consolidated sales amounted to 30,1m euro in H1 2017 compared to 31,0m euro in the corresponding period of 2016, as a result of the transition period in US market's HSN - a sales' slowdown at HSN TV channel and Canada was owed to the restructuring of the brand's presence and the shift of the distribution model to an independent distributor respectively.

Earnings before interest, tax and depreciation (EBITDA) in H1 2017 reached 5,4m euro compared to 5,8m euro in the respective period of 2016, impacted by the above mentioned US market changes. 

Net results after tax and minority rights stood at 1,2m euro in the particular period of 2017 compared to 2,2m euro in H1 2016.

Operating cash flows increased to 3,4m euro in H1 2017 compared to 3,2m euro in the corresponding period last year.

In H1 2017, skincare and suncare product categories were the major drivers in terms of sales' growth in Greece. More specifically;

• In the Skincare category, in the antiageing segment in particular, that enjoys the largest market share, while being the most profitable one in the pharmacy channel, KORRES Group recorded double digit growth. This upward trend was primarily led by the brand's breakthrough skincare collections Black Pine and Castanea Arcadia, that were further powered with new innovative products, as well as the premium Golden Krocus Ageless Saffron Elixir. All the above were supported by a TV & print campaign, promotional activities and an intensive training program.
• In the Suncare category, Red Grape - the new generation of antiageing and suncare face products - performed exceptionally well. Following the growth path of recent years, the collection was further enriched with the complementary body range.

In the international markets (Europe and the US), the KORRES Group further enhanced brand awareness through the launch of new innovative products, by strongly supporting existing POS (points of sales)  through promotional activities and by opening new POS. 

Finally, in Latin America and in the context of its strategic agreement with AVON, KORRES Group' performance in Brazil through AVON's distribution channel remained positive.

For more information:

INVESTOR RELATIONS / Athina Lagou / Τ (+30) 213 018 8905 E athina.lagou@korres.com

PRESS OFFICE

Katerina Traka / Τ (+30)  213 018 8837 Ε katerina.traka@korres.com

George Anthoulakis / T (+30) 213 018 8835 / E george.anthoulakis@korres.com