KORRES/H1 FINANCIAL RESULTS 2013

• 1,9M EURO POSITIVE OPERATING CASH FLOW
• MARKET SHARE INCREASE IN THE PHARMACY CHANNEL IN GREECE
• HIGHER SALES IN H1 2013

Market share increase in Greece, sales improvement in total Group's sales, positive operating cash flow and strong growth outside Greece in key markets were the financial highlights of H1 2013 for the Korres group. Specifically for its priority European markets - Germany, Russia, UK, France and Scandinavia - the group achieved growth 11%.

Group consolidated sales in H1 2013, increased by 0,2%, at 21,8m euro from 21,7m euro, coming from the KORRES SA positive trend of sales in Greece as well as the positive performance of the key export markets.

Adjusted earnings before interest, taxes, depreciation and amortization excluding the extraordinary restructuring cost impact-i.e. one off receivables rationalization effect materialized by the group given the foreseen adverse financial environment-(Adjusted EBITDA) reached 4,5m euro in H1 2013 from 5,1m euro in H1 2012, due to increased promo actions and the different product mix (phasing) between the two semesters. Earnings before interest, taxes, depreciation and amortization (EBITDA), after deducting restructuring costs reached 3,0m euro in H1 2013.

The Group achieved positive operating cash flow of 1,9m euro from -0,7m euro in H1 2012, as a result of the operating cost improvement and the management efforts towards rationalization of working capital.

Net after tax and minority results reached -0,9m euro in H1 2013 from 1,4m euro in the corresponding period of 2012. Excluding the restructuring cost mentioned above, net profit after tax and minority rights were positive, i.e. 0,7m euro.

In Greece, the Group increased its market share in the Pharmacy channel. This growth was the result of the focused promo actions and the positive trend of all product categories in Q2 2013, with major product players face, sun care and body.  

In particular, the Group in the specific categories realized the following actions:

• SKINCARE/ the group launched an innovative anti-ageing formula – Black Pine Serum – based on a NOBEL awarded discovery, that had direct positive results while significant impact had the total Black Pine family and other sub categories of face, being supported by promo actions.
• SUNCARE/ the group developed a new multi-action sun care collection based on the stem cells of a rare Red Grape cultivar that in addition to protecting from UVA/UVB radiation, it prevents wrinkles and dark spots.
• BODYCARE/ the Group, supporting the category with promo actions, succeeded the increase of its market share by 3.4%.

Outside Greece, the group continues its efforts to increase its total sales both in North America and in the key European markets of Germany, France, UK, Russia and Scandinavia. The group's objective is to further grow its brand awareness and presence in pharmacies and semi selective POS through new product categories, new products and focused promotional activities.

For more information:

INVESTOR RELATIONS / Athina Lagou / Τ: (+30) 213 018 8905, E: athina.lagou@korres.com

PUBLIC RELATIONS / George Anthoulakis / T (+30) 2130 188835 / E george.anthoulakis@korres.com