Kri Kri Milk Industry S A : Financial Results for the third Quarter 2023

K R I - K R I M I L K I N D U S T R Y S . A . General Commercial Registry No.: 113772252000

INTERIM FINANCIAL STATEMENTS

FOR THE PERIOD

1.1.2023 - 30.9.2023

IN ACCORDANCE WITH IFRS (IAS 34)

(TRANSLATION FROM THE GREEK ORIGINAL)

KRI-KRI MILK INDUSTRY S.A.

Interim Financial Statements as of 30 September 2023	2
(Amounts in €)

CONTENTS	Page
Condensed Statement of comprehensive income	3
Condensed Statement of financial position	4
Condensed Statement of change in shareholders' equity	5
Condensed Cash flow statement	6
General information	7
Significant accounting policies	7
Notes on Interim Financial Statements	11

KRI-KRI MILK INDUSTRY S.A.

Interim Financial Statements as of 30 September 2023			3
(Amounts in €)
Condensed Statement of Comprehensive Income
	Note.	1/1-30/9/2023	1/1-30/9/2022
Sales	C1	176.673.725	137.266.845
Cost of sales		(113.934.672)	(108.793.695)
Gross profit	C1	62.739.053	28.473.150
Distribution expenses	C1	(22.192.822)	(18.627.142)
Administration expenses		(3.090.046)	(2.706.417)
Research and development expenses		(293.323)	(306.584)
Other income		596.624	644.482
Other (loss) / gain net		173.814	111.011
Profit before taxes, financial and investment income	C1	37.933.300	7.588.500
Financial income		216.589	66.189
Financial expenses		(292.903)	(197.107)
Financial cost of leasing		(21.290)	(20.483)
Financial expenses (net)		(97.604)	(151.401)
Profit before taxes		37.835.696	7.437.099
Income tax	C3	(7.643.228)	(1.510.571)
Net profit for the period (A)		30.192.468	5.926.528
Other comprehensive income after tax (B)		0	0
Total comprehensive income after tax (A + B)		30.192.468	5.926.528
Net profit per share from continuous operations
- Basic and diluted (in €)		0,9184	0,1780

The accompanying notes are an integral part of these financial statements.

KRI-KRI MILK INDUSTRY S.A.

Interim Financial Statements as of 30 September 2023	4
(Amounts in €)

Condensed Statement of Financial Position

	Note	30/9/2023	31/12/2022
ASSETS
Non-current assets
Tangible assets	C4	77.806.489	73.879.559
Rights of use of assets		593.830	520.111
Investment in properties		10.082	10.082
Intangible assets		189.118	185.147
Other non-current assets		172.032	181.735
		78.771.551	74.776.634
Current assets
Inventories	C5	15.227.427	15.299.030
Trade and other receivables	C6	41.557.174	28.690.740
Current income tax receivables		0	2.110.152
Financial instruments		1.993.516	0
Cash and cash equivalents		28.603.870	7.221.288
		87.381.987	53.321.210
Total assets		166.153.538	128.097.844
EQUITY AND LIABILITIES
Equity
Share capital		12.564.752	12.564.752
Reserves		35.686.060	24.686.060
Reserves of own shares		(455.051)	(541.306)
Retained earnings		54.825.477	42.192.614
Total equity		102.621.238	78.902.120
Liabilities
Non-current liabilities
Long term borrowings	C7	11.850.000	6.750.000
Long term portion of leasing		378.926	355.857
Accrued pension and retirement obligations		343.294	304.149
Deferred tax liabilities		4.911.783	4.277.489
Government grants		5.235.536	5.524.536
		22.719.539	17.212.031
Current liabilities
Short-term borrowings	C7	6.151.600	7.945.948
Short term portion of leasing		243.689	190.058
Trade and other payables	C8	27.650.644	23.847.688
Current income tax liabilities		6.766.828	0
		40.812.761	31.983.694
Total liabilities		63.532.300	49.195.725
Total equity and liabilities		166.153.538	128.097.844

The accompanying notes are an integral part of these financial statements.

KRI-KRI MILK INDUSTRY S.A.

Interim Financial Statements as of 30 September 2023	5
(Amounts in €)

Condensed Statement of changes in equity

	Share capital
Balance at 31.12.2021	12.564.752
Profit for the period
Total comprehensive income for the period
Reserves increase
(Purchase) of own shares
Distribution of own shares
Transactions with owners in their capacity as owners
Dividends provided for or paid
Balance at 30.09.2022	12.564.752
Balance at 31.12.2022	12.564.752
Profit for the period
Total comprehensive income for the period
Reserves increase
(Purchase) of own shares
Distribution of own shares
Transactions with owners in their capacity as owners
Dividends provided for or paid

General	Special	Other
reserve	reserves	reserves
4.188.251	20.265.377	38.275
	125.382

4.188.251	20.390.759	38.275
4.188.251	20.390.759	38.275
	11.000.000

Reserves of own shares

(60.899)

(246.048)

191.367

(115.579)

(541.306)

(267.904)

354.160

Actuarial
gains-losses	Retained earnings	Total Equity
reserve
59.467	45.775.742	82.830.964
	5.926.528	5.926.528
	5.926.528	5.926.528
	(125.382)	0
		(246.049)
	(8.162)	183.204
	(6.613.027)	(6.613.027)
59.467	44.955.699	82.081.621
68.778	42.192.614	78.902.120
	30.192.468	30.192.468
	30.192.468	30.192.468
	(11.000.000)	0
		(267.904)
	53.423	407.583
	(6.613.027)	(6.613.027)

Balance at 30.09.2023

12.564.752

4.188.251

31.390.759

38.275

(455.051)

68.778

54.825.477

102.621.238

The accompanying notes are an integral part of these financial statements.

KRI-KRI MILK INDUSTRY S.A.

Interim Financial Statements as of 30 September 2023	6
(Amounts in €)

Condensed Statement of cash flows

Indirect method	1/1-30/9/2023	1/1-30/9/2022
OPERATING ACTIVITIES
Profit before taxes	37.835.696	7.437.099
Adjustments for:
Depreciation	3.898.970	3.898.413
Provisions	829.228	742.644
Foreign exchange differences, net	(6.907)	23.360
Amortization of government grants relating to capital expenses	(289.000)	(302.855)
Other non-cash items	354.160	191.367
Investment income	(153.758)	(119.875)
Interest and related expenses	314.193	217.590
	42.782.581	12.087.741
Changes in working capital:
Decrease / (Increase) in inventories	(16.953)	(2.116.340)
Decrease / (Increase) in receivables (trade)	(13.419.344)	(14.657.589)
Decrease / (Increase) in other receivables	527.356	(289.696)
(Decrease) / Increase in payables (except banks)	5.500.200	11.511.955
Less:
Interest and related expenses paid	(293.203)	(203.442)
Taxes paid	0	(820.140)
Cash flow from operating activities (a)	35.080.637	5.512.489
INVESTING ACTIVITIES
Purchase of tangible and intangible assets	(8.114.661)	(5.791.328)
Proceeds from sales of intangibles and property, plant and equipment	500	24.600
Interest received	216.589	66.189
Purchase of financial instruments	(1.993.516)	0
Cash flow from investing activities (b)	(9.891.088)	(5.700.539)
FINANCING ACTIVITIES
Loans	9.800.000	8.000.000
Repayments of loans	(6.500.000)	(4.355.000)
Repayments of financial leases	(228.132)	(204.162)
Purchase of own shares	(267.904)	(246.049)
Restricted deposits	0	2.230.000
Dividends paid to company's shareholders	(6.610.931)	(6.611.073)
Cash flow from financing activities ( c)	(3.806.967)	(1.186.283)
Change in cash and equivalents (a+b+c)	21.382.582	(1.374.333)
Cash and equivalents at beginning of period	7.221.288	10.749.735
Cash and equivalents at end of period	28.603.870	9.375.402

The accompanying notes are an integral part of these financial statements.

KRI-KRI MILK INDUSTRY S.A.

Interim Financial Statements as of 30 September 2023 (Amounts in €)

Α. General information

KRI-KRI MILK INDUSTRY S.A. operates in the dairy indus- try. Its main business activities is the production of ice- cream and yogurt.

The headquarters are located in 3rd km Serres-Drama, 62125, Serres, Greece, its website is www.krikri.gr and its shares are listed on Athens Stock Exchange (Food sector).

These financial statements have been approved by the Board of Directors on 22 November 2023.

The interim condensed financial statements have not been audited.

Β. Significant accounting policies

Β.1 Basis of preparation

These financial statements covering the period from 1.1.2023 to 30.9.2023 have been prepared according to IAS 34. The basis of their preparation is the historical cost and the "principle of going concern", taking into account all macroeconomic and microeconomic factors and their impact on the smooth operation of the Company.

The interim financial statements for the nine-month period have been prepared on the basis of the same accounting principles followed for the preparation and presentation of the financial statements for the year 2022, except for the new standards and interpretations adopted, the implementation of which was compulsory for periods after 1 January 2023.

Any differences that arise between the amounts in these interim financial statements and the corresponding amounts in the selected explanatory notes as well as in sums are due to rounding.

The interim financial statements should be read in conjunction with the audited financial statements for the year ended 31 December 2022, which have been posted on the Company's website and have been prepared in accordance with IFRSs.

The earnings tax in the interim financial statements is calculated using the tax rate applicable to annual profits.

New standards, amendments to standards and in- terpretations:

Certain new standards, amendments to standards and interpretations have been issued that are mandatory for periods beginning on or after 1.1.2023. The Company's evaluation of the effect of these new standards, amendments to standards and interpretations is as follows:

7

New Standards, Interpretations, Revisions and Amendments to existing Standards that are effective and have been adopted by the European Union

The following new Standards, Interpretations and amendments of IFRSs have been issued by the International Accounting Standards Board (IASB), are adopted by the Eu- ropean Union, and their application is mandatory from or after 01/01/2023.

IFRS 17 "Insurance Contracts" (effective for annual periods starting on or after 01/01/2023)

In May 2017, the IASB issued a new Standard, IFRS 17, which replaces an interim Standard, IFRS 4. The aim of the project was to provide a single principle-based standard to account for all types of insurance contracts, including reinsurance contracts that an insurer holds. A single principle-based standard would enhance comparability of financial reporting among entities, jurisdictions and capital markets. IFRS 17 sets out the requirements that an entity should apply in reporting information about insurance contracts it issues and reinsurance contracts it holds. Further- more, in June 2020, the IASB issued amendments, which do not affect the fundamental principles introduced when IFRS 17 has first been issued. The amendments are designed to reduce costs by simplifying some requirements in the Standard, make financial performance easier to ex- plain, as well as ease transition by deferring the effective date of the Standard to 2023 and by providing additional relief to reduce the effort required when applying the Standard for the first time. The above have been adopted by the European Union with effective date of 01/01/2023.

The amendments do not affect the company's Financial Statements.

Amendments to IAS 1 "Presentation of Financial State- ments" (effective for annual periods starting on or after 01/01/2023)

In February 2021, the IASB issued narrow-scope amendments that pertain to accounting policy disclosures. The objective of these amendments is to improve accounting policy disclosures so that they provide more useful information to investors and other primary users of the financial statements. More specifically, companies are required to disclose their material accounting policy information rather than their significant accounting policies. The above have been adopted by the European Union with effective date of 01/01/2023.

The amendments do not affect substantially the com- pany's Financial Statements.

KRI-KRI MILK INDUSTRY S.A.

Interim Financial Statements as of 30 September 2023 (Amounts in €)

Amendments to IAS 8 "Accounting Policies, Changes in Accounting Estimates and Errors: Definition of Accounting Estimates" (effective for annual periods starting on or after 01/01/2023)

In February 2021, the IASB issued narrow-scope amendments that they clarify how companies should distinguish changes in accounting policies from changes in accounting estimates. That distinction is important because changes in accounting estimates are applied prospectively only to future transactions and other future events, but changes in accounting policies are generally also applied retrospectively to past transactions and other past events. The above have been adopted by the European Union with effective date of 01/01/2023.

The amendments do not affect substantially the com- pany's Financial Statements.

Amendments to IAS 12 "Income Taxes: Deferred Tax related to Assets and Liabilities arising from a Single Trans- action" (effective for annual periods starting on or after 01/01/2023)

In May 2021, the IASB issued targeted amendments to IAS 12 to specify how companies should account for deferred tax on transactions such as leases and decommis- sioning obligations - transactions for which companies recognise both an asset and a liability. In specified circum- stances, companies are exempt from recognising deferred tax when they recognise assets or liabilities for the first time. The amendments clarify that the exemption does not apply and that companies are required to recognise deferred tax on such transactions. The above have been adopted by the European Union with effective date of 01/01/2023.

The amendments do not affect substantially the com- pany's Financial Statements.

Amendments to IFRS 17 "Insurance contracts: Initial Application of IFRS 17 and IFRS 9 - Comparative Infor- mation" (effective for annual periods starting on or after 01/01/2023)

In December 2021, the IASB issued a narrow-scope amendment to the transition requirements in IFRS 17 to address an important issue related to temporary accounting mismatches between insurance contract liabilities and financial assets in the comparative information presented when applying IFRS 17 "Insurance Contracts" and IFRS 9 "Financial Instruments" for the first time. The amendment aims to improve the usefulness of comparative information for the users of the financial statements. The above have been adopted by the European Union with effective date of 01/01/2023.

8

The amendments do not affect substantially the com- pany's Financial Statements.

New Standards, Interpretations, Revisions and Amendments to existing Standards that have not been applied yet or have not been adopted by the European Union

The following new Standards, Interpretations and amendments of IFRSs have been issued by the International Accounting Standards Board (IASB), but their application has not started yet or they have not been adopted by the Eu- ropean Union.

Amendments to IAS 12 "Income taxes": International Tax Reform - Pillar Two Model Rules (effective immediately and for annual periods starting on or after 01/01/2023)

In May 2023, the International Accounting Standards Board (IASB) issued amendments to IAS 12 "Income Taxes": International Tax Reform-Pillar Two Model Rules. The amendments introduced a) a temporary exception to the requirements to recognise and disclose information about deferred tax assets and liabilities related to Pillar Two income taxes and b) targeted disclosure requirements for affected entities. Companies may apply the temporary exception immediately, but disclosure requirements are required for annual periods commencing on or after 1 Jan- uary 2023.

The Company will examine the impact of the above on its Financial Statements, though it is not expected to have any.

The above have not been adopted by the European Union.

Amendments to IAS 1 "Classification of Liabilities as Current or Non-current" (effective for annual periods starting on or after 01/01/2024)

In January 2020, the IASB issued amendments to IAS 1 that affect requirements for the presentation of liabilities. Specifically, they clarify one of the criteria for classifying a liability as non-current, the requirement for an entity to have the right to defer settlement of the liability for at least 12 months after the reporting period. The amendments include: (a) specifying that an entity's right to defer settlement must exist at the end of the reporting period; (b) clarifying that classification is unaffected by manage- ment's intentions or expectations about whether the entity will exercise its right to defer settlement; (c) clarifying how lending conditions affect classification; and (d) clarifying requirements for classifying liabilities an entity will or may settle by issuing its own equity instruments. Furthermore, in July 2020, the IASB issued an amendment to defer by one year the effective date of the initially issued amendment to IAS 1, in response to the Covid-19 pandemic.

KRI-KRI MILK INDUSTRY S.A.

Interim Financial Statements as of 30 September 2023 (Amounts in €)

However, in October 2022, the IASB issued an additional amendment that aim to improve the information companies provide about long-term debt with covenants. IAS 1 requires a company to classify debt as non-current only if the company can avoid settling the debt in the 12 months after the reporting date. However, a company's ability to do so is often subject to complying with covenants. The amendments to IAS 1 specify that covenants to be complied with after the reporting date do not affect the classification of debt as current or non-current at the reporting date. Instead, the amendments require a company to disclose information about these covenants in the notes to the financial statements. The amendments are effective for annual reporting periods beginning on or after 1 Janu- ary 2024, with early adoption permitted.

The Company will examine the impact of the above on its Financial Statements, though it is not expected to have any.

The above have not been adopted by the European Union.

Amendments to IFRS 16 "Leases: Lease Liability in a Sale and Leaseback" (effective for annual periods starting on or after 01/01/2024)

In September 2022, the IASB issued narrow-scope amendments to IFRS 16 "Leases" which add to requirements explaining how a company accounts for a sale and leaseback after the date of the transaction. A sale and leaseback is a transaction for which a company sells an asset and leases that same asset back for a period of time from the new owner. IFRS 16 includes requirements on how to account for a sale and leaseback at the date the transaction takes place. However, IFRS 16 had not specified how to measure the transaction when reporting after that date. The issued amendments add to the sale and leaseback requirements in IFRS 16, thereby supporting the consistent application of the Accounting Standard. These amendments will not change the accounting for leases other than those arising in a sale and leaseback transaction.

The Company will examine the impact of the above on its Financial Statements, though it is not expected to have any.

The above have not been adopted by the European Union.

Amendments to IAS 7 "Statement of Cash Flows" and IFRS 7 "Financial Instruments: Disclosures": Supplier Finance Arrangements (effective for annual periods starting on or after 01/01/2024)

In May 2023, the International Accounting Standards Board (IASB) issued Supplier Finance Arrangements, which amended IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures. The IASB issued

9

Supplier Finance Arrangements to require an entity to provide additional disclosures about its supplier finance ar- rangements. The amendments require additional disclosures that complement the existing disclosures in these two standards. They require entities to provide users of financial statements with information that enable them a) to assess how supplier finance arrangements affect an en- tity's liabilities and cash flows and to understand the effect of supplier finance arrangements on an entity's exposure to liquidity risk and how the entity might be affected if the arrangements were no longer available to it. The amendments to IAS 7 and IFRS 7 are effective for accounting periods on or after 1 January 2024.

The Company will examine the impact of the above on its Financial Statements, though it is not expected to have any.

The above have not been adopted by the European Union.

Amendments to IAS 21 "The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability (effective for annual periods starting on or after 01/01/2025)

In August 2023, the International Accounting Standards Board (IASB) issued amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates that require entities to provide more useful information in their financial statements when a currency cannot be exchanged into another currency. The amendments introduce a definition of currency exchangeability and the process by which an entity should assess this exchangeability. In addition, the amendments provide guidance on how an entity should estimate a spot exchange rate in cases where a currency is not exchangeable and require additional disclosures in cases where an entity has estimated a spot exchange rate due to a lack of exchangeability. The amendments to IAS 21 are effective for accounting periods on or after 1 Janu- ary 2025.

The Company will examine the impact of the above on its Financial Statements, though it is not expected to have any.

The above have not been adopted by the European Union.

Β.2 Financial risk management

The interim financial statements do not include disclosure of all risks required in the preparation of the annual financial statements and should be read in conjunction with the annual financial statements of the Company for the year ended 31 December 2022.

KRI-KRI MILK INDUSTRY S.A.

Interim Financial Statements as of 30 September 2023	10
(Amounts in €)

Β.3 Significant accounting estimates and judgments of the management

The preparation of the interim financial statements requires the Company's management to make estimations, judgments and assumptions that affect the application of the accounting principles and the asset/liability income/ex- pense accounting values. The results are maybe different that these estimations.

For the preparation of the interim financial statements the significant judgments and estimates of the Management regarding the application of the Company's accounting principles are the same as those used for the preparation and presentation of the Company's annual financial statements for the year 2022.

Also, the main sources of uncertainty that existed in the preparation of the annual financial statements of 31 De- cember 2022 remained the same for the interim financial statements as at 30 September 2023.

Β.4 Comparative information

Comparative information is disclosed in respect of the previous period for all amounts reported in the financial state- ments, both face of financial statements and notes. Differences may arise between the amounts stated in the financial statements and the amounts stated in the notes, as a result of numbers rounding.