KORRES /Q1 2014 FINANCIAL RESULTS

 

• INCREASED SALES
• INCREASED ADJUSTED EBITDA
• POSITIVE NET INCOME
• OPERATING CASH FLOW DOUBLES

 

 

A profitable Q1 2014 for the KORRES Group, following positive sales trend and the improved operating profitability; significant increase for operating cash flow which doubled to 3,3m euro.

 

Group consolidated sales increased by 5% in Q1 2014 - at 12,5m euro from 11,9m euro in Q1 2013 - incorporating the positive trend of all key markets.

 

Double digit growth for international markets [22%], had a key role in sales increase contributed to the US market - where KORRES started direct product distribution via its newly founded subsidiary KORRES US Ltd and the sales growth in the priority European markets.

 

For Greece, and despite the adverse environment in the main distribution channel due to rolling pharmacy strikes, the Group has achieved marginal increase vs Q1 2013, reflecting the positive impact of its communication and promotional plan.

 

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), excluding the extraordinary restructuring cost impact, reached 3,1m euro in Q1 2014 from 3,0m euro in Q1 2013. Earnings before interest, taxes, depreciation and amortization (EBITDA), grew by 4% at 2,3m euro from 2,2m euro.

 

The Group operating cash flow doubled at 3,3m euro from 1,6m euro in Q1 2013, as a result the strategic commercial agreement with AVON, the improved operational profitability and the overall effort towards working capital rationalization.

 

Net after tax and minority results (profits) reached 0,3m euro in Q1 2014 from losses -0,1m euro in Q1 2013.

 

 

The KORRES Group continued supporting its strategic categories with a high-impact promotional plan. More specifically:

 

 

• SKINCARE/ KORRES introduced a new treatment category within its FACE portfolio, in tune with the increased demand in professional-grade products that can deliver advanced cosmetic treatments at home. The new line - based on Wild Rose, an ingredient that marks the birth of KORRES through its first ever cosmetic, the 24-hour moisturizing and brightening cream – offers clinically proved benefits even upon first application. This new innovative line, along with Black Pine, a commercially significant franchise - was supported by an integrated communication and promo plan, including high-impact TV advertising and strong POP merchandising.

 

• SUNCARE / KORRES introduced a new After Sun face cream based on its global-innovation formula with real, edible yoghurt and intensive moisturizing, soothing and antioxidant properties.

 

BODYCARE / Q1 saw the introduction of a new bodycare line – the Santorini Vine collection – based on a white grape variety, indigenous to Santorini island; a unique ingredient used in cosmetics for the first time, this is another example of the group's consistent and intensive effort to promote the rich Greek flora and support the local economy through its extensive network of ethical co operations throughout Greece. Santorini Vine is the result of KORRES collaborating with the Union of Santorini Co operatives (SantoWines). 

 

 

Outside Greece, the Group continued to focus its interest in key European markets - UK, Germany, Russia, Spain, France and Scandinavia - while in the US having terminated its licensing agreement with J&J, the Group founded a new North America subsidiary so  as to establish direct presence and exploit the significant opportunities of the particular market.

 

Furthermore, the Group proceeded with the strategic alliance with AVON, for the production and distribution of KORRES products in Latin America, offering a unique opportunity for the brand to reach an extensive consumer audience that shares the KORRES values and philosophy.

 

 

 

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