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Kri-Kri: 4.3% increase in EBITDA and 7.3% in turnover in the nine months

Kri-Kri’s financial results improved both in the nine months and in the third quarter of the current financial year.

More specifically, the turnover for the first nine months of 2021 amounted to 110.24 million euros compared to 102.75 million euros in the corresponding period last year, recording an increase of 7.3%.

EBITDA during the same period amounted to 22.29 million euros compared to 21.37 million euros, improved by 4.3%.

In terms of the third quarter, turnover increased by 8.7% and amounted to 40.01 million euros compared to 36.82 million euros in the corresponding period last year, with EBITDA showing a marginal improvement of 0, 9% to 7.64 million euros compared to 7.57 million euros.

During the third quarter of the year 2021, there were no significant changes in the loan position and the capital structure, as well as in other figures of the Company’s financial position.

Effects of Covid – 19 spread

The Company’s Management has taken a number of measures to manage the health crisis and minimize the negative effects on its activities. Throughout this health crisis, employee safety is a top priority.

To this end, the Company has developed the following initiatives through the establishment of a special team, which reports to the Senior Management, monitoring all relevant developments and evaluating the potential impact of COVID-19. The Group, in line with all the protocols of the WHO, EODY and other competent authorities, has already prepared and fully implemented a plan to ensure business continuity. This plan also includes additional planning for staff performing operations critical to production and business continuity in general, in order to minimize the risk of downtime.

Also, business travel has been kept to a minimum and remote work systems (teleworking) are being implemented where possible.

Finally, emergency arrangements have been put in place for employees belonging to vulnerable groups and policies that require staff to report any suspicious symptoms. Now, from the experience we have gathered, it seems that the Company can manage the risks posed by the health crisis of covid-19 in an effective way.

According to the course of the COVID-19 coronavirus pandemic to date and the financial position of the Company, its effects are not expected to have a significant impact on the continuation of business activities and financial results. In addition, the Company has a strong financial position, an extremely low net leverage ratio, and total available liquidity of up to € 13 million.

Impact of the energy crisis

The current global energy crisis has a multifaceted impact on the Company’s cost base. First, by directly increasing the cost of electricity and gas used in the production process. In the fiscal year 2020, energy expenditure accounted for about 2% of total expenditure.

It also indirectly affects transport and distribution costs. In the fiscal year 2020, these expenditures accounted for about 5% of total expenditures.

Finally, the current energy crisis is burdening additional costs and various other parts of our supply chain. For example, it has had a catalytic effect on increasing the cost of producing agricultural products, thus burdening the cost of feed and therefore the cost of producing raw milk. Also, the prices of plastic, which is a basic packaging material, have increased significantly.

Assessment for the development of activities during the fourth quarter

For the rest of the fiscal year 2021, the management of KRI-KRI maintains a cautious attitude. The recently emerging inflationary environment has also affected our basic input costs. More specifically, we have recently experienced price increases in transport costs and energy. At the same time, the pressure for price increases in basic raw materials that we use and in packaging materials has become intense.

From this development, our profit margins may be pressed, despite our efforts to pass on part of our cost increase to the selling prices of products.

The Management closely monitors the developments in the market of raw materials and energy and makes every effort to better manage the above developments and reduce the negative consequences on its financial results.

According to the current data, the Management estimates that in the year 2021 an increase of the total sales in a single digit percentage and a small decline of the operating profit margins could be achieved.

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Source From: Capital

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