Kri-Kri Milk Industry (KRI) H2 2024 earnings summary

Executive summary

• Sales for 2024 increased by 18.5% to €256.4 million, driven by strong yogurt export performance and ice cream sales, despite lower yogurt prices reducing sales by €5.4 million.

• Gross profit margin declined by 3.8 percentage points to 29.7% due to rising input and labor costs.

• EBITDA reached €42.6 million (16.6% margin), and EBIT was €37.2 million (14.5% margin), missing the revised EBIT margin target of 16%.

• Net profit after tax increased 7.1% to €34.5 million, supported by a €5.3 million state subsidy as tax relief for CapEx projects.

• Yogurt exports now represent 63% of total yogurt sales, with significant growth in the UK (+43%) and Italy (+17%).

Financial highlights

• Operating cash flow was €30 million, down €20 million from 2023, mainly due to higher tax outflows and increased trade receivables.

• Gross profit for 2024 was €76.1 million, with a margin of 29.7%.

• Yogurt export sales grew by €32.5 million to €130 million, now 62.8% of total yogurt sales.

• Domestic yogurt sales were stable in value at €76 million but saw a 43.7% decline in EBIT due to price reductions and market realignment.

• Domestic ice cream sales rose by 13.4%, with EBIT up 11.9%.

Outlook and guidance

• 2025 sales are estimated to reach €300 million, a 17% increase over 2024, with Q1 2025 sales already up over 20%.

• EBIT margin is expected between 14%-15%.

• CapEx for 2025 is projected at €21-25 million, part of a three-year €50 million plan, with anticipated subsidies.

• Tax relief from CapEx subsidies expected at €4.7 million in 2025, €3.2 million in 2026, and €2 million in 2027.

• No material impact from U.S. frozen yogurt pilot expected in 2025; sales in 2026 are possible.