Kri-Kri: Increased turnover, EBITDA declined

The financial statements of the first quarter of 2022 were published today by the dairy industry KRI-KRI.

As announced by the listed company, the turnover amounted to € 30.73 million compared to € 28.56 million in 2021 (increased + 7.6%), while the basic figures of profitability are as follows:
The operating profit (EBITDA) amounted to € 1.75 million compared to € 4.53 million in 2021.
The profit before tax amounted to € 0.55 million, compared to € 3.55 million in 2021.
Finally, the net profit after taxes amounted to € 0.45 million, compared to € 2.82 million in 2021.

In yogurt branch Overall sales increased by + 8.6% in value and + 5.7% in volume. In foreign markets, sales show double-digit growth + 15.4%, reaching € 15 million. There is a significant boost from the market of Italy (increase + 18.8%), the United Kingdom (increase + 4.2%) , and from other countries such as Sweden, Germany and Austria. At the level of five months, yogurt sales abroad continue with a corresponding growth rate exceeding + 17%.

In the Greek yogurt market, the sales of KRI-KRI show a small increase + 1.4%, reaching € 12.25 million. The current situation with the conditions of high inflation, has led the overall market to fall, -11.3% in volume and -6.8% in value [στοιχεία IRI, Ιαν.-Μαρ. 2022]. However, some sub-categories of the market, such as those of children, infants and functional yoghurts, in which KRI-KRI has a strong presence, show high inelasticity, with the result that their fall is very limited or even strengthened. Thus, the market share of KRI-KRI yogurts now stands at 16.9%, increased by 0.9 percentage points [στοιχεία IRI σε αξία, Ιαν.-Μαρ. 2022].

At the same time, in the current situation, the tendency of strengthening the market share of private label yogurts is emerging, as a result of the shift of consumers to value for money products. It is expected to benefit KRI-KRI, as it is the largest producer for the domestic market of private label yogurts. Now, in five months, the growth of domestic yogurt sales exceeds 6%.

In ice cream industry, where the first quarter is not representative of the annual results due to the high seasonality, domestic sales amounted to € 1.93m. for € 2.50m. of the previous year. This decrease is a result of the unfavorable weather conditions that prevailed in the first months of this year. In the near future, however, the sales trend was reversed, as the weather conditions improved, and thus the result of the expansion of the sales network and the launch of the new series of premium Master Rich ice creams emerged. Thus, in the five months, domestic ice cream sales appear increased by about + 8%.

High prices of materials and energy have led to a reduction in profit margins. The company passed on part of its cost increase to product prices. The first cycle of revaluations was completed at the end of January, followed by a second cycle with revaluations that apply from May or June. Lately, the rise in material prices has stopped, showing stabilizing trends and some signs of de-escalation on the horizon.

The primary goal is to manage inflationary pressures

In the current economic climate, our primary goal is to manage inflationary pressures in such a way as to achieve the transfer of our costs from the increased prices of materials and energy, without compromising the cooperation with our customers or our consumers.

In the emerging economic environment, several opportunities are expected to emerge to expand and strengthen our presence. We can take advantage of these opportunities, as we gather all those necessary characteristics to operate effectively, while at the same time we have a strong financial position. The expected de-escalation in material and energy prices will allow our profit margins to recover, leading to higher levels of profitability.