Korres Natural Products : 12M 2016 Financial Results Announcement

KORRES / FINANCIAL RESULTS 2016

• SALES GROWTH IN GREECE

• SALES GROWTH IN STRATEGIC INTERNATIONAL MARKETS

• STABLE OPERATING PROFITABILITY (Adjusted EBITDA)

• HIGH OPERATING CASH FLOWS

  In 2016, KORRES Group presented positive performance both in Greece and certain priority international markets combined with Gross profit margin increase and further improvement its operating cash flows.

  Korres Group consolidated sales amounted to 54,6m euro, marginally higher, + 0,1%, vs 2015.

  In Greece, sales increased by 4%, reflecting the successful impact of the new innovative products.

  Double digit growth +18%, had been achieved by the Group in certain priority markets in Europe - Germany, Norway, UK-. In the US, key distribution channels such as Sephora stores, Sephora in JCPenney and the digital store Korres US .com had significant sales increase. HSN's sales performed at lower levels. Canada sales were also at a lower level due to the transition of the distribution model to an independent distributor.

  Gross profit margin increased to 65.0% from 64.2% in 2015, due to product mix optimization and focused cost reduction efforts.

  Adjusted earnings before interest, tax and depreciation (Adjusted EBITDA) in 2016 at 8,2m euro (excluding extraordinary restructuring cost impact) were at the same level with 2015. Earnings before interest, tax and depreciation were 4,9m euro in 2016.

  Net results after tax and minority rights amounted to -2,3m euro from -1,4m euro in 2015, mainly due to the extraordinary restructuring cost.

  Operating cash flows were tripled in 2016 at 5,7m euro from 2,1m euro in 2015, strengthening Korres Group's financial position.

  In 2016, Korres Group continued to invest in research and development focusing in innovation as reflected in a range of new products in the following strategic product categories:

• In Face, the Group focused on the anti ageing-the biggest and most profitable category in pharmacy-presenting the successful Anti-Wrinkle collection Castania Arcadia-Korres global innovation based on the largest primary research of natural ingredients and the Golden Krocus, Ageless Elixir, the first cosmetic product with organic Greek Saffron extract, the best saffron variety in the world. Furthermore, Korres Group supported intensively its Black Pine range (firming and lifting needs).

• In hair colorants, the Group launched the new permanent professional colorant, Abyssinia Superior Gloss Colorant, with the exclusive Pigment-lock technology while the top selection of the category, Argan Oil Advanced Colorant, continued to be the significant pillar of the communication plan.

• In the sun care protection, the Group continued to focus in the popular category of Red Grape, the new product generation with sun care, anti-wrinkle and anti spot action. The range was enhanced by the new sun care face cream SPF30, with color.

Korres Group in the international markets (Europe and the US) continued to expand its brand awareness through the launch of new products, further supporting existing POS (points of sales) with promo actions and opening new POS.

Finally, in Latin America, Korres Group -within the context of the strategic agreement with AVON- continued to positive performance of its products distribution in Brazil through AVON's distribution channel.

For more information:

INVESTOR RELATIONS / Athina Lagou/ Τ: ([phone],E: [e-mail] PUBLIC RELATIONS

Katerina Traka/ Τ: 213 018 8837 Ε: [e-mail]

George Anthoulakis / T ([phone] / E [e-mail]