KRI KRI Milk Industry S A : Comments on 6 months 2018 Results

3Ο ΧΛΜ. ΣΕΡΡΩΝ - ΔΡΑΜΑΣ 62125 ΣΕΡΡΕΣ

ΚΡΙ-ΚΡΙ Α.Ε.

ΒΙΟΜΗΧΑΝΙΑ ΓΑΛΑΚΤΟΣ

ΤΗΛ: [phone]

FAX: [phone] Α.Φ.Μ.: 094289571

KRI-KRI S.A. MILK INDUSTRY

3RD KM. SERRES - DRAMA 62125 SERRES TEL: [phone]

FAX: [phone] VRN: 094289571

Serres, 17.9.2018

Press release

KRI-KRI Milk Industry has released its interim financial statements for the first semester 2018.

Turnover amounted €60.00m against €41.19m of H1 2017 (an increase of +23.8%). Basic profitability measures were as follows:

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Gross profit amounted €21.43m against €16.26m of H1 2017,

Ebitda amounted €11.71m against €8.22m of H1 2017,

Profit before tax amounted €10.17m against €6.81m of H1 2017,

Net profit after tax amounted €7.36m against €4.90m of H1 2017.

In the domestic ice-cream market, sales amounted €13.58m, increased by + 15.2%. Key driver was the

expansion of sales network, along with the delivery of a strong advertising plan. We added to our network more than 1,000 new sales points and, also, strengthened our presence at super markets channel. In addition, new product launches significantly contributed to this performance. Thus, "Kri-Kri" brand ice-cream maintains its 2nd position, with a volume market share of 15.5% (Nielsen data, Jul. 2018).

In the yogurt market of Greece, sales amounted €20.31m, increased by +16.3%. Focusing on the big category of strained yogurt, we recently relaunched our strained yogurt products under the brand "My authentic Greek Yogurt". The campaign was accompanied by intense advertising communication of their quality upgrade and parallel targeted in-store promotions. Two-digit growth, also, achieved in other yogurt market sub-categories. Thus, Kri-Kri increased its share in the total Greek yogurt market, reaching 15.2% (in volume) holding the 2nd place, whereas it is leader in kids yogurts with a volume market share of 39% (IRI data, Jul. 2018).

Finally, yogurt exports are booming (+37.2% year-on-year). This result comes from expanding current collaborations, but also from the utilization of the Greek yogurt dynamics in the large markets of western Europe where we have presence. Hence, export sales account for more than 33% of total turnover.