FAGE: Investments of 15.7 million in Greece, USA and a new factory

By George Lampiris

In the first nine months of 2021, FAGE made a total investment of 15.7 million dollars, money that was directed, among other things, to the Greek factory, as well as to the plan to build a new factory in Western Europe and in America, where it operates. The company is now fully reviewing its plan to build a new plant following a failed attempt in Luxembourg and its involvement with local authorities in the area and conditions under which the plant would be built there. Characteristic is her report on the creation of a new factory in Western Europe through the financial statements of nine months of this year, in order to be able to meet the ever-increasing demand for yogurt in the European market. To this end, the company has signed guarantees with suppliers and manufacturers. At the same time, in order to maintain its momentum in the American market, it is investing in the factory it maintains in Johnstown, having also signed relevant agreements for the execution of works in the United States unit.

More specifically, of the total capital expenditures of $ 10.8 million in the first nine months of 2021, $ 3.2 million corresponds to expenditures for the US plant, $ 5.6 million is related to facilities in Greece and 2.0 millions of dollars related to our new production unit. Net cash used in investment activities amounted to $ 15.6 million for the nine months ended September 30, 2020.

Sales growth in Europe, shrinkage in the US

At the same time in the nine months ended September 30, 2021, FAGE recorded an increase in sales in Europe from $ 166.9 million in 2020 to $ 188.3 million in 2021, with pre-tax profits being 22 , $ 28 million compared to $ 24.47 million last year. At the same time, in America its turnover was by 7 million dollars reduced to 220.27 million euros, compared to 227 million dollars last year. Total turnover for the company in the first nine months of 2020 was $ 408.6 million, compared to $ 394.38 million in 2020 with pre-tax profits of $ 25.17 million versus $ 43 million.

The increase in sales in value for the nine months ended September 30, 2021, compared to the nine months ended September 30, 2020, is mainly due to the increase in sales in volume by 4.8% and the positive effect by 2.7% sales in value due to the weakening of the US dollar against the euro and the British pound, which were partially offset by the reduction of the average net selling price in all markets by 3.9%. Sales in value increased in Italy, the United Kingdom and Greece by 20.0%, 8.8% and 3.9%, respectively, which were partially offset by the decrease in value sales in the United States by 3, 2%.

85% of sales outside Greece

Respectively, sales in volume for the nine months ended September 30, 2021 increased by 4.8% compared to the nine months ended September 30, 2020. This was mainly due to increases in sales volume in Italy, Greece, the United Kingdom and the United States by 12.5%, 7.3%, 3.6% and 0.8% respectively. Sales in value outside Greece represented 85.3% of total sales in value for the nine months ended September 30, 2021, compared to 85.4% for the nine months ended September 30, 2020.