Press release

KRI-KRI SA Milk Industry has released its annual financial statements for the fiscal year 2020. Turnover amounted €125.98m against €112.90m of 2019 (an increase of +11.6%).

Basic profitability measures were as follows:

• Gross margin amounted €40.43m against €39.10m of 2019,
• EBITDA amounted €22.29m against €21.12m of 2019,
• Profit before tax amounted €18.42m against €17.57m of 2019,
• Net profit after tax amounted €15.86m against €15.02m of 2019.

In the domestic ice cream market, sales reached €20.70m from €21.70m. The Greek ice cream market was hit hard from the lockdown, in response to COVID-19 pandemic. The period that followed presented clear signs of recovery, with sales presenting only a slight decline of -4.6%. The Kri Kri brand is ranked in the 2nd position of the Greek ice cream market, with a share in volume of 14.6% (NIELSEN data, December 2020).

In the yogurt market of Greece, sales amounted €49.98m, increased by +12.9%. This performance can be attributed to the 3.7% increase of the market size, the strengthening of our branded yogurts market share, as well as the increase in sales of private label products. Branded yogurts market share reached 16.3%, maintaining the 2nd position (IRI data in volume, December 2020).

In overseas markets, yogurt exports continue surging (+24.0% year-on-year). Export sales reached €50m, which represents 50% of total yogurt sales.

Regarding the investment activity, in 2020 total CAPEX exceeded €10.2m. Despite the difficult situation caused by the COVID-19 pandemic, KRI-KRI's healthy balance sheet and high liquidity allows the seamless implementation of our CAPEX plan.

KRI-KRI's management is cautious about the situation and developments in the economic environment.

The yogurt sector proved to be particularly resilient, as it is considered basic food, while it is distributed by the supermarket channel. From the data so far, there was no particular negative impact on sales, as a result of measures to limit the spread of COVID-19.

On the other hand, the ice cream segment appears more vulnerable. This is because it is associated with spontaneous consumption, while it is also affected by tourist flows. However, the emerging trend of increased ice-cream consumption at home, via the supermarket channel, helped mitigating the negative effects of the COVID-19 pandemic. For this year 2021, we expect a strong recovery in the sales of ice cream.

Based on currently available data, the management estimates that, for the year 2021, the growth in total sales at a rate similar to that of 2020 is achievable, while maintaining at least the operating profit margins of 2020.

Finally, regarding dividend policy for the fiscal year 2020, the Board of Directors decided to propose to the Annual General Meeting the distribution of gross dividend of €0.20 per share (2019: €0.18 per share). This distribution is subject to approval by the Annual General Meeting.