3ο χλμ. Σερρών - Δράμας, 62125, Σέρρες
Τηλ: +30 23210 68300
email: info@krikri.gr website: https://www.krikri.gr
ΑΦΜ.: 094289571,
Αρ. ΓΕΜΗ: 113772252000
KRI-KRI MILK INDUSTRY S.A.3rd km. Serres - Drama, 62125, Serres,
Tel: +30 23210 68300
email: info@krikri.gr website: https://www.krikri.gr VAT no.: EL094289571,
Reg no: 113772252000
Transcript of analysts' briefing on FY.2025 results [23.04.2026]
Hello and welcome to this webcast. I am Kostas Sarmadakis, KRI-KRI's CFO. In this session, we will discuss in detail our performance for the full year 2025 and I will give you an update on the business for the current year 2026. After a short presentation, Q&A will follow. You can post your questions using the chat tool.
Page 3Now, let's have a look at our P&L statement. Sales continue to show strong growth, with an increase of 28.2%, exceeding €328m. Most of this growth is attributed to higher selling quantities, while the price effect is estimated at about 2%. Gross profit margin was 27%, which is 2.7 percentage points lower than that of 2024. EBITDA increased by +13.4% and reached €48.3m with a margin of 14.7%. EBIT shows similar increase of 13%, at 42.1m with a margin of 12.8%. It should be noted that Profit After Tax had a benefit of €1.4m that relates to tax relief, as a state subsidy for completed CAPEX projects. For the previous period, the tax relief was much higher, at €5.3m. And this explains why the Profit After Tax figure is marginally reduced. We have applied to be certified for completed state subsidized CAPEX projects. Following the successful completion of audits, we will be given the right to tax exemptions in future periods, totaling €6.7m
Page 4Now, compared to targets: actual sales figure well exceeded the revised estimate of above €300m. And also, we achieved the EBIT figure target of €42m, even marginally. But we missed the EBIT margin target by about 1 percentage point. And this difference is translated to about €3m less at the bottom line.
In the yogurt segment, our gross margin improved in the second half of 2025, broadly in line with our estimates and after our price adjusting initiatives. However, we had some cost overruns, as shown on the table on the right-hand side of the page. Firstly, about 1.1m
relates to increased cost of raw materials for ice cream. Prices of key raw materials, such as cocoa, chocolate and vegetable fats remained at high levels during the last quarter of 2025, when we proceed to mass purchases for the next season. In 2026, these prices have dropped significantly. A second element is the increased waste in yogurt production. This comes from the shortage of available capacity that made our factory to operate well above the optimal utilization rate, to cover the demand. Also, we had increased transportation cost because of the change in sales mix regarding geography. So, sales in distant markets like UK have grown at higher pace. Finally, in 2025 we upgraded our SAP ERP system and moved to the cloud version. We expect this upgrade to support our digital transformation initiatives and facilitate the introduction of AI to more areas of the business. Unfortunately, the project went a little over budget.
Page 5Moving on to input costs, the graph shows the evolution of raw milk prices. The blue line shows the price of Greek milk, which consists our basic raw material. You can see that it stubbornly stands at high level, a little above 55. On the other hand, with the green color, you can see that the price EU milk has dropped significantly in Q4 and continues in 2026 at even lower levels. This is explained by the abundance of raw milk supply. This development has a direct positive impact on our costing base as it relates to dairy commodities that we mostly import, such as butter and proteins. Also, it might drive the Greek milk price lower, as buyers of Greek milk may replace some quantities with imported milk.
Now, about the impact of the Middle East conflict. It is very difficult to estimate the impact, both the financial and the operational, on our business; especially if the conflicts last for long. Given that effects are temporal and energy markets will soon return back, the estimated total surcharge to our costing base is about €5.5m. The most part of it is currently offset by lower dairy commodities prices. And, also, we are preparing for price adjustments if the effects on our costing base escalate.
Page 6Moving on to segment review, yogurt export sales show a strong double-digit growth of
+45.7%, exceeding €188m. It is worth mentioning that yogurt exports sales make up about 70% of total yogurt sales. The boost in our sales mostly comes from the major markets of UK and Italy. You can see on the graphs that the size of Greek yogurt market in these two countries is growing rapidly. And with the currently available information, we expect this growth at high pace to continue.
Page 7Moving on, in the domestic market, it seems that the market has entered a growth phase. In 2025 it showed an increase of +10% in value and +7% in volume. And this positive trend seems to continue during the first months of 2026. Our sales in 2025 have followed the growth of the market. In general, consumer preference for private label yogurts continues, primarily driven by the significant price gap compared to branded products. And although we overall benefit from this development, it exercises pressure to our branded yogurt market share.
Page 8In the ice cream segment, in the domestic market, our sales show an increase of +8,0% in value. The prevailing inflationary environment has primarily affected the traditional sales channel, leading consumers to shift towards supermarkets and private label products. This, also, means higher discounts and pressure to margins. In response, our growth strategy focuses on expanding our sales network and promoting our Greek Frozen Yogurt range of products, particularly in tourist areas.
In exports, the US case is going according to the plan. However, it seems that it will take some time until sales there reach a material level. In addition, there are efforts to tap into new markets. A recent case is China, where we have a scheduled a launch of Greek frozen yogurt with SAM's club, a subsidiary of Walmart.
Page 9Let me now move on to our estimates for 2026. We expect sales growth to continue at high pace. Our estimate for 2026 is a figure above €390m. Our EBIT figure is expected to be around €60m, provided that current geopolitical developments will not have a material impact on our cost base. The financial performance in the first quarter of 2026 supports those estimates. Specifically, sales are showing an increase of over +30%, while profitability margins have improved.
Page 10Finally, the shareholders' structure. Tsinavos family holds about 70% of the share capital.
Institutionals abroad hold 14,0%, domestic institutionals about 10% and retail about 6%.
Thank you all for attending this meeting.
Please post any questions you may have at the chat tool. I will return in a little and try to answer them.
[…]
Q&A:Thank you all for posting your questions. There are many questions, but I will try to answer as many as possible.
Can you provide an approximate percentage of Kri Kri's annual expenses that is
attributed to energy consumption?"
Energy was about €7m in 2025. We are not a very heavy energy consumer. I think this accounts for about 3% of the cost.
Can you comment on the U.S. market performance of Kri Kri and how it has developed so far?
We expect to see some good figures in the U.S. market coming from 2026. We have launched our branded products in a large supermarket chain, mostly in Texas State. And also we have a contract for private label with a large American retailer.
Do you expect yogurt profit margins to increase in 2026, while ice cream margins decline due to a weak start to the season (e.g., bad weather)? If so, how would this impact overall consumption?
Overall, we see an improvement in the profit margins. This comes both from a lower level of raw material prices, along with initiatives of price adjustments that took place in the second half of 2025.
Are there any plans to purchase new trucks for product distribution in 2026? We don't own trucks. All the transportation is done by third parties.
With annual yogurt demand growing at over 30%, how long can Kri Kri sustain this
growth using its current production infrastructure?"
Of course, it is very challenging to keep up growing at such pace. In many cases, we are running out of capacity. Especially in periods when demand is peaking. This is why we are having heavy capex projects in order to build up our capacity and be able to fulfil the rising demand.
Are there specific plans to further expand production capacity after the Greek Yoghurt Dynamo project?
This project is expected to be completed by the end of 2027. If we see that we need further expansion, I think we will have a plan for further capex as well.
Could you provide more detail on the expected tax relief in the coming years, including an estimate of the amount per year?
With the recent application for certification for completion of our capex project, we will have about 6.5m in tax relief for the next years. I think four of these will be available for use in 2026 and the rest in 2027.
What percentage of cost of goods sold (COGS) for Kri Kri is attributable to Greek raw milk versus EU-sourced raw milk?
Our imports of raw milk are very limited. We mostly use Greek milk, but we import some dairy commodities such as butter and proteins.
Do you expect the UK market for authentic Greek yogurt to surpass that of Italy? What we are seeing is that the UK market is growing at a very high pace and very aggressively. If this trend continues, we might see it surpassing the market of Italy in a couple of years.
Has Kri Kri signed a contract with Walmart in the U.S.?
No, we don't have a contract with Walmart. We have one with Kroger for private label products.
Why do you consider the Chinese market approachable for Kri Kri, and could you elaborate on that?
I'm not sure I understand the point here, but the general idea is that we try to sell where we find opportunities, and if China can offer such, we will tap into this market as well
Can you provide more details on Kri Kri's progress in the U.S. market, and what factors are preventing faster growth in the region?"
I said that, overall it is going according to the plan. We will see some good figures coming out from there in the current year. We might have cultivated some greater prospects, but it seems that it will take some time for material sales to come from there.
Could you outline the sectors where Kri Kri plans to invest the €26-30m this year? Most of the Capex is going to be in the yoghurt factory in order to increase capacity.
What are the main drivers behind your EBIT margin target of 15.4% for Kri Kri
compared to this year's margin?
I think I answered this.
Regarding the German market: has Kri Kri stopped delivering yogurt products to EDEKA? If so, are you considering exiting the German yogurt market and focusing more on other key markets such as France, Poland, and Austria?
I think we stopped delivering yoghurt there, and also we were delisted, at least from some supermarkets, after a slight price increase that we tried. But sales there were not significant.
Could you explain what drove Q1 performance by geography for Kri Kri, particularly the split between volume and pricing?
It is a little early to have more details on this. You need to wait a couple of weeks until our first quarter's financial statements are released.
Does the €60m EBIT guidance for Kri Kri include the €5.5 million impact related to
the war?
Yes, this is incorporated. And as I said, much of this is offset by lower prices of dairy commodities.
From which month could price adjustments be expected, assuming Kri Kri proceeds with them?
Last year we had some price adjustments that were effective mostly from August in 2025.
As you expand your sales network for ice cream and Greek frozen yogurt, could you elaborate on your current number of sales points and your target for 2026?
We tried to increase, to expand our sales network for ice cream. We now have more than 20,000 points of sale. And each year we try to add about 1,000 new points of sale to our network.
Why is the UK market growing so much faster for Kri Kri compared to the lower growth in Italy?
I think it has incorporated most trends of healthy diet that comes along with Greek yoghurt. And also, the consumption behavior is different there. British mostly consume plain yoghurt as a food ingredient. Whereas Italians prefer flavored yoghurt and consume it as a dessert.
What is the expected CAPEX in 2026?
I think we have this here. It is about €26m to €30m.
With cocoa prices returning to more normal levels, should we expect an improvement in ice cream margins going forward?
Yes, we have seen that cocoa prices and chocolate prices have dropped significantly in the first months of 2026. And this will have a positive effect on our ice cream margin.
Could developments in the Middle East affect milk prices and potentially increase costs?
Yes, this is a risk. This happened also in 2022. But the energy crisis back then started in June 2021. And it took about nine months after affecting milk prices. Currently, the case seems different. Because raw milk supply is very high all across Europe.
When do you expect the new factory for Kri Kri to become operational?
Currently, the project Greek yoghurt dynamo is related to expanding our current facilities and not building a new factory. And as I said, all new production lines are expected to be operational by the end of 2027. But these new lines will add to production gradually.
What percentage of supermarket contracts for Kri Kri include cost pass-through clauses, and how are these typically implemented?
This mostly consists of contracts with UK retailers. And I think they now consist of more than 60% of sales there.
What assumptions has Kri Kri made regarding the Greek yogurt market for 2026 in terms of volume and price/mix?
We are seeing that the market is entering a growth phase. But competition is still very hard domestically. And I think this pressure over prices will continue. So, we need to have very elegant commercial moves with our branded yoghurts.
In which quarter is the €3m variable compensation expected to be booked in FY26? Part of this consists of increases in salaries. And this will be all along the current year, 2026. So this will be split evenly. And a part of this will be variable compensation, a bonus that will affect the last quarter.
What are you currently observing in cost trends (milk prices, energy, and transport costs)?
I think I have answered this.
What were the key assumptions underlying the margin guidance provided by Kri Kri? As I said, the assumption was that the conflict will end soon. It will not take more than the next three or four months. And the energy market will return in the coming months as well. So, the effect will be about six to seven months.
Could you explain how much Kri Kri's sales depend on specific retail partners? What percentage of total revenue comes from your largest retailer? In key markets such as the UK, do you work with a single partner or a diversified retail base?
We have many retailers that we work with. Only two customers exceed the 10% threshold. One is a UK retailer and the second is our customer, the importer, that serves the Italian market.
Could you provide more details on the China launch?
As I said, we have scheduled a launch with Greek frozen yoghurt. The shipment is on the way, and it is expected on the shelves in the coming months.
In the domestic market, branded share declined from 14.9% to 13.7%. At the same time, private label is growing. Do you expect this trend to reverse?
Currently, domestically, the price gap between branded yoghurt and private label is very high, it's about 50%. Normal price gap is about 30%. So if relative prices remain the same, we expect that private label will continue gaining market share.
Is your strategy increasingly focused on international markets and private label as growth drivers?
I think the opportunity lies with the international market. Our strategy is to capture as much of this growth as we can.
With €60m EBIT and €390m revenue implying a 15.4% margin, what milk price assumption is embedded in this guidance?
There are some underlying assumptions that we expect to happen. But these are relatively according to current market prices.
Does Kri Kri use hedging or long-term contracts for raw material procurement?
We don't have any hedging contracts because our raw materials are not reflected to financial instruments directly.
Compared to end-2025, how much is production capacity expected to increase by end-2026 and end-2027?
With the Greek yoghurt Dynamo project, we expect to double our capacity compared to 2024.
What is the current growth rate of the UK market in Q1?
The UK market continues to grow at a very high pace. I think it is more than 45% or 50%.
What is the latest update on expansion efforts into the French market?
In France we have a small presence. Currently, as we are facing capacity constraints and we are struggling to meet the demand, we set the priority to supply our existing customers. In this way we delay any business development in other markets.
Many companies use the term 'Greek yogurt' instead of 'Greek-style yogurt'. Is Kri Kri taking any legal or strategic actions to protect the authenticity of the 'Greek yogurt' designation internationally?
According to EU legislation Greek yoghurt can be called Greek yoghurt. Otherwise, it should be called Greek style. In our view this is not an element of protection. But we believe that the actual protection comes from high quality. And consumers perception of buying an original product.
Regarding dividends, what payout ratio should we assume going forward?
The proposed dividend is 45 cents. It has increased by about 12% compared to last year. We have much need for capex. We expect dividend to increase according to profitability in the coming years.
Given the strong sales in the UK, does it make sense for Kri Kri to consider local production there in the future?
At this point it is not on the table. Because as I explained in order to call Greek yoghurt. You need to produce it in Greece. So, by building factory production unit abroad. We will lose this benefit.
Should more marketing investment be directed toward promoting ice cream products in Greece?
That is not easy to answer. We try with our commercial strategy to increase our sales of ice cream. And I think we are effective in that way.
Is the Kroger contract exclusive for now?
Contract with Kroger is not exclusive. I think it will be important to see the actual appeal of our products to US consumers. And I believe that if this is successful, other retailers might follow.
Do you see additional partnership or synergy opportunities in ice cream?
Yes, we do have synergies, with ION for example, a chocolate maker in Greece. We have co-branded products. And these are very successful.
Should we expect gradual margin improvement from productivity gains?
This is a very good question. I believe that there are opportunities to increase our productivity. Because, as I said, all these years our focus was to try to meet the rising demand. So, some areas like cost control and waste control have been left a little behind. And those are the opportunities that can improve our margins as well.
Is Kri Kri considering any acquisitions to support demand growth?
No, currently we don't consider any acquisitions. As we see, organic growth is very high.
I think that was the last question. Thank you all for joining this session. Have a nice day.