KORRES  / FINANCIAL RESULTS 9M 2012

• NET PROFIT AFTER TAX INCREASE  [+ 38,9%]
• SALES INCREASE IN GREECE  [+ 1,5%]
• STRONG EBITDA IMPROVEMENT

korres announces sales increase in Greece for the first nine months of 2012, despite the adverse financial environment; a strong net profit increase and EBIDTA improvement.

More specifically, 9M consolidated sales for the Group reached €30,9m vs. €31,8m in the corresponding 2011 period; an outcome of the lower North America sales due to the fact that Johnson & Johnson has entered the local production stage of the transition period as well as the restructuring effect in certain priority markets like Germany and Spain, undertaken by the KORRES Group to ensure profitable growth going forward.

Profitability improvement is one of the 9M results' highlights with the gross margin reaching 63% vs. 59% (9M 2011), a 350 BPS increase, due to focused sales policy, product mix optimization and cost rationalization.

Earnings before interest, taxes, depreciation, and amortization [EBITDA], reached €6,6m, increased by 0,7% [9M 2011]. In 2011, the Group had increased other income due to milestone payments from Johnson & Johnson following the completion of the transitional period of the North America deal. Should the impact of these income be excluded for a consistent comparison, there is a 54,6% increase in operational profitability; a significant improvement which is an outcome of the gross profit margin improvement and operating expenses rationalization.

Net profit after tax and minority rights reached €1,4m [9M 2012] vs. €1m [9M 2011], increased by 38,9%.  

In Greece despite the deepening crisis and the adverse clime which intensified during quarters two and three [2012], KORRES managed to increase its sales by 1,5% and to maintain its improved market share from the previous year. KORRES achieved growth throughout its distribution network, focusing on continuous advertising support [TV, print and web]; innovative launches [antiageing and haircare]; product category revamp [men's care and bodycare]; new website launch; ongoing support of its sales network [Pharmacy] and its national cooperations with agricultural communities [contractual farming] and science teams.

Outside Greece, KORRES doubled its UK sales and implemented restructuring programs in certain priority markets like Germany and Spain, to ensure profitable growth going forward. The Group's strategy is to expand its presence in pharmacies, exclusive retailers and semi selective points of sale in these priority markets while also strengthening its North America presence through its partnership with Johnson & Johnson.

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