Kri-Kri Milk Industry (KRI) H1 2024 earnings summary

Executive summary

• H1 2024 sales grew 15.8% year-over-year to €130.87m, driven by strong growth in yogurt exports and ice cream segments.

• Net profit after tax increased 24.2% year-over-year to €26.32m, benefiting from a one-off €5.3m state subsidy related to CapEx projects.

• Yogurt exports now represent about 63% of total yogurt sales, with significant growth in the UK (+42%) and Italy (+18%).

• EBIT was €26.91m (20.6% margin), and EBITDA was €29.44m (22.5% margin), both up year-over-year.

• Exports accounted for 53.4% of total sales, up 26.7% year-over-year.

Financial highlights

• Gross profit margin was 34.6% (down from 36.6% in H1 2023), with gross profit at €45.22m.

• EBIT margin dropped by 2.7 percentage points year-over-year, mainly due to increased transportation costs and sales mix changes.

• Ice cream sales grew 20.6% to €28.52m, with margin improving to 49.5%.

• Yogurt sales rose 14.5% to €101.14m, with volume gains offset by lower price levels.

• Operating expenses increased 22.2% year-over-year.

Outlook and guidance

• Management expects total 2024 sales to exceed €245m, up 13% year-over-year.

• EBIT margin for 2024 projected around 16%.

• Double-digit sales growth is anticipated for the next three years.

• CapEx for 2024 expected between €21m and €25m, mainly for yogurt plant expansion.