Kri-Kri Milk Industry (KRI) H1 2025 earnings summary

Executive summary

• Sales increased by 23.7% year-over-year to €162 million in H1 2025, driven by strong yogurt and ice cream sales and robust export growth, with exports accounting for 60.3% of total sales.

• Yogurt export sales grew nearly 40% year-over-year, with strong demand in the UK and Italy, and yogurt exports now represent 70% of total yogurt sales.

• Domestic yogurt sales rose 4.4%, while domestic ice cream sales increased by 6%; ice cream export sales also saw significant growth, especially from Greek frozen yogurt and new private label contracts.

• Net profit after tax was €19.4 million, down from €26.3 million in H1 2024, reflecting margin pressures from higher raw material costs.

• EBITDA for H1 2025 was €26.1 million, an 11.4% decrease compared to H1 2024.

Financial highlights

• Gross profit margin declined to 27.5% from 34.6% year-over-year due to higher input and manufacturing costs, mainly raw milk.

• EBIT margin was 14.3% (down from 20.6% in H1 2024), and EBITDA margin was 16.1% (down from 22.5%).

• Free cash flow to the firm was negative at -€7.3 million, compared to -€3.1 million in H1 2024.

• ROE dropped to 13.2% (from 20.0% in H1 2024), and ROA to 9.1% (from 13.9%).

• Dividend of €0.40 per share for FY 2024 was approved and distributed.

Outlook and guidance

• Full-year sales are expected to exceed the initial estimate of €300 million, with EBIT margin guidance for the year around 14% and expectations for improved margins in H2 2025.

• CAPEX for the year is projected between €21 million and €25 million.

• Greek Yogurt Dynamo project will double yogurt production capacity by 2027, with a €52 million budget and €23 million in expected tax relief.

• Targeted price adjustments and signs of easing raw milk prices may support margins in H2 2025.