Kri-Kri Milk Industry Stock

Hello, and welcome to this webcast. I'm Konstantinos Sarmadakis, Kri-Kri's CFO. During today's presentation, I will walk you through our financial performance for the first 6 months of the year, the key developments across our main business segments, the evolution of our courts and our expectations for the full year. The first half of 2026 was characterized by strong sales growth, significant profitability improvement and continued momentum now in the national [indiscernible] business.

At the same time, the geopolitical environment has created additional uncertainty particularly in relation to energy, packaging and transformation transportation costs. Following the presentation, we will be happy to address your questions. You can submit your questions using the chat tool.

Let us begin with the financial results for the first half of 2026. Sales rate EUR 204 million compared to EUR 162 million in the corresponding period of 2025, representing an increase of about 26%. Importantly, this growth was dominantly volume driven reflecting the continued expansion of our international local business. Gross profit increased by 48.5% to EUR 66 million. As a result, the gross profit margin improved substantially, reaching exactly 2.4% compared with EUR 27.5 million in the first half of 2025. This improvement reflects the combined benefit of higher production volumes, improved operating leverage and a more favorable relationship between selling prices and key input costs.

EBIT increased by 70.6% to EUR 39.4 million with EBIT margin rising by 5 percentage points from 14.3% to 19.3% followed a similar pattern, increasing by 65% to EUR 43 million, corresponding to a margin of 21.2%. Finally, profit after tax reached EUR 36.5 million, up by 87.6% year-on-year. It would be noted that profit after tax included a benefit of EUR 5.7 million related to tax relief granted under state incentive scheme for completed capital expenditure projects. The corresponding benefit in the previous period was significantly lower at EUR 1.4 million. Overall, the first half results demonstrate strong growth, significant margin expansion and substantial operating leverage.

I will now turn to segment revenue. Let us start with the Yogurt exports, our largest and more dynamic business segment. It now accounts of about 63% of total sales. Yogurt exports remain our main growth engine during the first half of 2026. Sales increased by 46.6% reaching approximately EUR 129 million, a bit more than doubled to EUR 28 million. This demonstrates both the strength of demand and the substantial operating leverage of the yogurt business. Growth was particularly strong now to major international markets. Sales in the U.K. increased by 67%, while sales in Italy increased by 31%. The underlying market environment remains supportive. Demand remains very strong, and we expect the greek yogurt category to continue expanding at an attractive pace.

Turning to the domestic global market. We have also seen a positive development in both market demand and our financial performance. The overall market increased by 11% in value and 8.6% in volume. Against this backdrop, our domestic gas sales increased by 10% to EUR 43.3 million. Private label yogurt continues to gain market relevance as consumers seek more affordable alteratives in an inflationary environment. As a leading private label supplier, Kri-Kri benefits from this shift. At the same time, however, the increased consumer preference for private label creates pressure on the market share of branded yogurt products.

Our objective is therefore twofold to maintain our leading proposition in private label while also strengthening the competitiveness and differentiation of our branded portfolio. Performance in the ice cream segment was weaker during the first half of the year, although the 2 parts of the business were affected by different factors. In the Greek market, our sales declined by 1.8% to EUR 22.8 million. It generally followed the market trend, which recorded a decline of 4.3% in volume and 1.5% in value. Some say that the overall market shows signs of saturation stemming from the higher price level that ice cream have reached. Whatever is the case, we are implementing some initiatives to improve our performance.

The most important is the further expansion of our sales network, especially into risk areas. We are also placing great emphasis on product categories with stronger growth potential, including greek frozen yogurt. In ice cream export sales, sales decreased by 23.6% to EUR 7.2 million. This is mostly attributed to a loss of a contract for a private labor with a U.K. retailer. Our bet was that the performance of Greek frozen yogurt in U.S. will offset much of this. However, our sales development there is slower than initially expected. And although we continue to see attractive development opportunities in the U.S. market, with our current business model, it seems that it will take some time and it needs more patients for the distribution to expand.

Therefore, we have already started examining some options to accelerate the expansion of distribution and treats wider pressures more quickly. And apart from U.S., other countries like China seem to present an opportunity.

Moving on, the sales bridge explains the progression from approximately EUR 162 million in the first half of 2025 to EUR 204 million in the first half of 2026. The central message is that the increase was overwhelmingly volume driven. Yogurt volumes contributed approximately EUR 37 million of incremental sales, confirming that the expansion is primarily based on higher quantity sold. Also, it is pricing actions implemented during the second half of 2025 contributed about EUR 8.5 million to first half sales growth. These actions also supported the improvement in gross profit, as illustrated on the following slide.

Moving call, this slide shows the gross profit increased approximately from approximately EUR 45 million in the first half of 2025 to EUR 66 million in the first half of 2026. Higher sales quantities were an important contributor, adding approximately EUR 8 million to gross profit. Selling price and mix effects provided an additional confusion of about EUR 8 million and positive input price contribution of about EUR 5 million. These last 2 factors explain the large part of the gross margin expansion. In the second half, we expect a different picture.

Firstly, we anticipate a much lower price contribution in the second half of the year. Since most of rising actions took place in the second half of 2025, the compare period now includes these increases, effectively reducing the year-on-year pricing tail. At the same time, as the conflict in the Middle East continues, we see an increased risk of cost pressure on several cost components. In response, we are actively paring targeted bank actions. If the current pressures persist, this action will be implemented selectively with the objective of mitigating the impact aging while preserving our competitive position. Compared with previous inflationary cities, we are better prepared to respond effectively and with a shorter time lag between input cost increases and the corresponding pricing action.

Let me conclude the operational review with our revised estimates for the full year 2026. Based on our strong first half performance and the information currently available, we now expect full year sales to reach approximately EUR 400 million compared with our previous guidance of more than EUR 390 million. At the same time, the disruption in international markets, resulting from geopolitical developments in the Middle East appears to be more prolonged and more intense than initially anticipated. This is creating increased pressure across many cost components. Under the current circumstances and provided that these pressures do not materially ease during the final quarter of the year, we expect full year EBIT to be slightly below our initial target of approximately EUR 60 million in the range of EUR 57 million to EUR 58 million. Despite these near-term pressures, we continue to expect strong growth and high profitability in 2026 maintaining the positive performance of recent years.

Let me now turn to our medium-term investment plan, which is a key component of Kri-Kri's future growth strategy. Demand for Greek yogurt remains very strong, particularly in core European markets, and we expect the category to continue expanding. At the same time, we see further growth opportunities in other countries with large and well-developed yogurt markets. Our main constraint today is not demand, but available production capacity. The strong increase in volumes means that our existing yogurt facilities are operating at high utilization rates, leaving us with limited spare capacity to accommodate further growth.

To address this constraint, we have developed a significant medium-term investment product. Total planned CapEx for the period from 2026 to 2030 amounts approximately EUR 127 million with annual investments raising between EUR 23 million to EUR 28 million. The objective is to expand our yogurt production capacity progressively and in line with anticipated demand compared with 2025 capacity days, we expect capacity to double by 2030. And by 2030, yogurt production capacity is expected to be almost 3x the 2025 level. This investment program will enable us to ease the current capacity constraint improved production flexibility and capture the opportunity rising from the continued growth of the Greek Yogurt category. Most of these investments are stayed subsidized and expected to generate material tax relief benefits. The table shows the estimated tax relief amounts for the future years.

Before concluding, let me summarize the 4 key messages from today's presentation. First, demand for Greek yogurt remains strong across developed European markets. The rapid expansion of the category, combined with our established presence in key markets such as U.K. and Italy, provides a solid foundation for continued export growth. Second, we are implementing a substantial medium-term investment product to remove the current city constraint. The planned expansion will enable us to share growing demand improved production flexibility and pursue additional opportunities in both existing and new markets. Third, while yogurt remains our primary growth engine, we also see opportunities to generate complementary income streams from our other business segment, in particular, our domestic goat operations private label activities and the international development of Greek frozen yogurt can provide additional sources of growth and diversification.

Finally, we are closely monitoring the inflationary pressures are rising from the current geopolitical environment. compared with previous inflation are cycles, we are now better prepared to respond more rapidly and effectively. If the current cost pressures persist, we are ready to implement targeted pricing actions in order to mitigate their impact and protect profitability while maintaining our competitive position.

In summary, Kri-Kri combines strong underlying demand, a clear capacity expansion plan and improvement in ability to deliver profitable growth. Although the external cost environment creates some near-term center, the fundamentals of the business remain strong and our medium-term outlook remains positive. Thank you all for attending this webcast. I will leave you 5 minutes to submit your questions with webchat tool, and then I will come back answering them. Thank you.

Hello. We are now ready to begin the Q&A session. And thank you for submitting your questions. We have received several interesting questions covering a range of topics. And we will do our best to address most of them. So let's start with the first question. The first question is about pricing. And could you provide some guidance on your pricing initiatives for half -- the second half of 2026 and 2027 to offset the rising inflation?

Yes, we are now in the preparation phase of this price actions. So the -- it hasn't settled yet. But we are trying -- the idea is to try to pass additional cost in product prices.

Moving on to the next question about energy cost and how much has energy cost and internal production costs increased since February 2026.

With energy, we don't have any hedging tools. We are lucky because overall energy cost does not account a very high percentage in our cost structure. We use electricity and also natural gas. And the energy cost overall followed the market increase of the prices.

Next question is about our investment program. And if the new capacity is on track for 2027, how much volume come out by 2028?

Yes. The CapEx project -- the CapEx plan is on track, both for 2027. It is early yet to speak about 2028. So it is still as a plan. We haven't proceeded in purchase orders for machinery and equipment. In this table, you can see the capacity expansion that we expect. So by 2028, we expect to have doubled the capacity compared to 2025 points.

Next question relates to frozen yogurt and the sales in China. And if we think that Chinese is a bigger market than the U.S. and in 3 to 5 years, given the slow development of the U.S.

With China, the initial -- our initial view is that it is a promising market. However, it's very early to say more. And compared to the size, although the population is much more in China U.S. consumption per capita is, I think, much higher. So the U.S. is still a priority for us. But in markets like China, we see an alternative and possible other countries that can support income flows in the future.

I believe we have already answered the next question, so we're moving on. The next one relates to other markets. Are you still turning away business in other markets outside U.K., France, given capacity constraints?

It's not that we are turning away. It's that because of where sort of spare capacity we try to delay new business development.

Right. So moving on to the next one, which relates to the lost contract in the ice cream segment. If we expect to replace that volume with a new retailer and when we could see ice cream exports to recover?

Just to know the private label contracts for ice cream differ from yogurt because usually, every year, retailers reshuffle their private label portfolio and change flavors and dice creams. So this was the case that we lost the contract. Of course, in the future, it is still a chance to recover lost sales it will win in some tender that they will raise.

All right. So the next one relates to our expansion and how possible is to make a new factory out of Greece.

I think currently, this is something that we don't have in our plans. Currently, we invest in Greece, and we are supporting the idea of Greek yogurt. That seems to have great demand all across Europe.

The next question relates to our customer structure and customer concentration. How could you assess the level of customer concentration in your international business, given that 2 foreign customers accounted for approximately EUR 53 million in sales in the first half? And if -- are these mainly private label partnerships and which markets are these customers in?

Yes, according to also the note -- relevant note in our financial statements, you will see that these 2 customers, 1 is accounts of 14% and the other about 10% of our sales. One is our importer and distributor for the Italian market. So it is not so much an actual concentration, but it is a technical one and the other is a large retailer in the U.K. So in our view, we don't have any particular risk of consumers concentration.

The next question is about frozen yogurt and the U.S. market. Got exactly does accelerate in the strategy involved, more marketing spend, new distributors or retail listing?

Yes. The most important is to expand the distribution. So we need to find a way to tap into more sales points, points of sales and more retail stores. After building at least material distribution, then marketing, expanding can also support expansion. But first, we need to find a way to accelerate the distribution building more quickly.

Moving on to the next question, which is about raw mat prices and the increase in Greece in recent months. Are you seeing this? And what explains the difference from wider EU mix prices?

Yes, this is a case of some initial indications that starting from July that is a pressure on our important significant cost components. So this we expect if the situation continues to be more intense in terms of pressure the diverters from wider region milk prices, I think, has to do with demand and supply. So overall, it seems that raw milk apply across EU has a reason. And this pushes prices at lower levels, whereas in Greece, the demand is much higher, and this drives prices up.

The next question relates to domestic competition, and we got here the example of [indiscernible] that the increase in capacity as well. And the question is, what is the risk of excess capacity in Greece? And is there enough milk to meet the increased capacity in the country?

The first of the risk of excess capacity, I think in our case, we don't have such risk because as we can see, on our CapEx plan, capacity has increased gradually and according to demand. And we will have time to adjust according to actual market conditions. The thing that other competitors and peers are trying to build up capacity in our view is positive because this means that demand is hot. And as we develop the market of Greek yogurt at a larger scale. This makes it much more stable and mitigate the risk of being out of fashion, I mean, the Greek yogurt category.

The second thing about milk production in the country. In general, risk has a deficit of from milk. So much of the local needs are covered with imported milk.

All right. So the next 3 questions stands in the corporate finance area. The first one is about our strategy to expand and if we consider any acquisition in order to plant both domestically and internationally?

Currently, no, our focus is on organic growth, as you can see that the growth is at a very high basis here.

The second one is, if we have received any potential invested from investors about equity stake?

Now and then because we are a listed company, there are investors that are interested in buying some sales. And -- but I think that this demand is covered by free float.

And the last one is about our growth trajectory and what is our biggest risk to our business.

This is a very good question, I think. In my view, I don't think any risk coming from outside environment. I think the most important risk, but it is the risk that we have early addressed is internal and has to do with the organization and how to be able to cope with the future growth, I mean, all the organizational structure, people and need to adjust to this growth trajectory. And this is not very easy if it takes for a look. But it is a risk that we early -- we have early spotted, and we are running some initiatives so as to mitigate this.

We have a question about yogurt sales and if we got any new countries added in the past few months.

No. We didn't have them in new countries. Because, as I said, we try to delay any further business development.

We've got another question about the ice cream contract in the U.K., and they ask us, of course, the main reason behind losing it.

I think I answered this. It was a reshuffling of their private label portfolio. So they stopped with the [indiscernible].

The next question is about our U.K. sales. The set out now is our largest market, about 1/3 of total sales. Do you expect this pace to continue? And are you launching in new markets to reduce the dependence on the U.K.?

We don't see that the situation in U.K. is unhealthy. So we need to reduce dependence there. It is a fast-growing market. And all the signs that are available is that it seems that such high growth pace will continue in the coming years as well.

The next question, can you tell us with the actual prices, how much maximum sales can you generate with 2026 production capacity program, just a rough idea?

Yes, this is not very easy to calculate. But as a rough idea, I would say, EUR 430 million or EUR 440 million.

Next question is about the U.S. market. How U.S. market is progressing and your view on 2027 sales outlook for both products?

Yes. As I said, U.S. sales there is slow. Currently with no material sales. And it is really here to speak about 2027. So we have to wait a little before we set up clearly our budgeted figures for next year and then we'll have a better picture.

Moving on to the next question is about our CapEx investment program after 2030, if you already identified specific CapEx projects. Would you be open to build a new greenfield site? Or do you plan an expansion of sales plant? Do you already have an amount in mind?

Yes, there are some initial thoughts if we need further capacity expansion after 2030. But I think it is very early to discuss and give you figures and numbers at that point.

The next question is about ROI. What is the return on investment that you estimate with this planned CapEx? And then how much debt will you use to finance this CapEx?

Yes. In general, we set up a target of minimum return on investment before continue with the CapEx plan and this is about 25%. So all this on this project are also had the green light to proceed with this estimate. About the financing of this CapEx plans, most of this because we have a very high operating cash flows. Most of these are expected to be financed by operating cash flows. And we expect to have a low perhaps debt of about 20% to 30% of the total volume.

The next question is about the -- our net profit margin. And they ask us about the given level of CapEx if the margin should remain around 15% through 2030. And do you see any room for further improvement over the years?

Yes, we see a sustainable EBIT margin of about 14% to 15% at least in the coming 2 to 3 years. Personally, I think there is room for improvement. Coming from economies of scale, better cost control and other initiatives. But it is very hard to quantify this at this point.

The next question is about the GTA market growth. It's 67%, and it seems unsustainable, what do you think when the market will be mature?

If you see -- the U.K. market size have treatment in 3 years' time. And although this growth rates are very high and sustainable. I believe that there is still room for market expansion. This is based on the still low penetration that Greek yogurt has against and compared to Greek style. So in our view is that there is substantial room for further growth. And this will also be supported by retailers as well as it is a case of a very successful example.

The next question is about EBIT margins, and they say that [indiscernible] at 22% at margin and just 12.5% increase. And they asked about what drives that up and if we expect export margins to cheap expanding as volumes grow.

Yes, this has to do with the structure of the markets. Increase the market is -- the competition is much higher. So this exercise pressure on prices abroad because also of high demand. Our pricing power is better. And all these are reflected on our margins as well.

I believe we have already answered the next one. So moving on. Is there a price increase plans for second half this year?

Not yet. As I said, there are some preparation that we are running and the most probable scenario is such price actions to be effective, perhaps in December or early in 2027.

The next question is about growth and the slowdown, reaching EUR 400 million in 2026 means that in the second half, growth of 18% versus 25% in the first half, while the growth could slow down.

This has to do with the ice cream because ice cream performance is weak and ice cream contributes more in the third quarter. And second has to do with the pricing effect. So with these 2 in mind, we expect this EUR 400 million.

The next question is about the additional capacity in the coming years. Where do you plan to divert your additional capacity? So do we assume new private label contracts in foreign markets? Any plans for Asia?

This additional capacity in is to cover the demand -- to meet the demand of our existing markets which is very strong, and there are many cases that we cannot respond in full, and we are losing opportunities. And the second is to leave some spare capacity in order to tap in new markets, new countries as well. For us, Asia, we don't have plans for yogurt. With yogurt, we have the constraint of short shelf life. So our focus is mostly on major European markets.

The last question is about the 2 customers we mentioned in the financial statements and the share of EBITDA for both of them. And when do we -- the current supply agreements come up for a renewal?

I think the EBIT are similar to all other customers in the segment. So there is no material difference. And the agreements were come from -- I don't remember this [indiscernible].

Right. So we move on. Another question about market expansion and if we plan to go to other EU countries. And if there are any other EU countries with high growth like Italy in the U.K.?

We are planning to go to other EU countries when our capacity allows it. So there are plans to tap in these countries as well. I don't know -- for any other EU country to present high growth for Greek yogurt because these 2 are the ones with the most developed markets for Greek yogurt.

The next question relates to why the pricing actions you mentioned earlier and if the cost persists. One, could with these price increases be implemented? And if these price increases are mainly for Greece or for international and private label business as well?

I think we answered at least the first part of this. We expect the most probable scenario is to be effective early in 2027 or perhaps in the sellback of 2026. And these price increases will cover all the yogurt category. And we'll say to adjust it according to competition conditions in its market as well.

The last question relates to frozen yogurt and sales in the U.S. market, and let's say, frozen yogurt enjoyed strong market pay through loan-grade companies. How is the demand for products evolving?

Yes. This is, as I said, in U.S., the major thing is that we don't have a wide distribution. Apart from this, we have indications that our product has got consumer appeal. So we are optimistic for further growth there. But with our current business model, we will have to we will have to wait and allow some time before it is material figures.

We've got another question about cost pressure in the second half of the year. How much of that cost pressure comes from milk, energy, packaging and transport?

The note on our financial statements that it is a detailed split among this core components the most important correspondent is raw materials and packaging. In total, these 2 accounts of about more than 80% of our production cost.

The next question is about revenue growth in revenue growth rate in 2027. And then if we back this to be higher than 2026, given the production capacity in 2027.

Yes, it's early to discuss about next year guidance. But in general, we are optimistic that we will -- but we will achieve also high growth rates, both in sales and also in profit.

We've got another question about costs and cost drivers. Would you like to add something on that cost?

We had a table in our previous presentation that was giving some details of our expected cost surcharge per cost component. That was in total of EUR 5.5 million. This is expected to increase by about EUR 2 million to EUR 3 million according to our revised guidance.

The next question is about raw milk and they ask us about how much is raw milk compared to total raw milk purchased in Greece.

I think it accounts about less than 20%, but I'm not very sure about this.

There is another question about CapEx. They say you mentioned the CapEx will ease capacity constraints. Are you capacity constrained today? If so, really, how much?

Yes, there are cases that we cannot respond and deliver in full. This is most often happens in periods where there is a higher seasonality for yogurt, like May or September. And I think with our planned CapEx, we will take up some spare capacity in next Q.

Got a question about digital marketing, if there is a room for improvement. And if there is a room for improvement for marketing with the company as a whole?

This is not my thing. So I cannot answer this.

We've got a question about protein. Do you see that protein-related products of the company have good return on margins?

Yes, this is correct. This is the case that I think we were the first that we have introduced high protein yogurts in Greece and they have good appeal and also a good and higher price per kilo and better margins as well.

Another question for EBIT margins and they compare EBIT margin in second half of 2026 versus second half of 2025, how do you explain that the 2026 is lower? And even if the input costs are increasing, the top line is also increasing a lot.

Yes, it is difficult to explain this. But it has also to do with our accounting policy because our costs are cumulative year-to-date. So costs start to -- may happen in Q4 will affect also costs that have happened in Q1 of its year. So this leads to perhaps a higher impact on costs. If sudden changes in raw material prices happen.

The last question is about our competitors. And if we've seen the new extra capacity they had to address booming authentic Greek yogurt market?

Yes. We have some information that also many of our Greek peers are trying to build up capacity.

And the last question is about the yogurt and the frozen yogurt and given made in Greece protection and its health appeal while frozen yogurt is more competitive category. Does that make frozen yogurt a harder and lower-margin business for you?

We expect that this made in Greece will have better appeal to customers -- to consumers -- so this is the idea. And yes, frozen yogurt has high profit margin than other types of ice cream.

We've got the last minute question as well, Konsta. Can you comment on the news that Rodouls company is thinking of entering the yogurt business?

I don't know this. So it's difficult to say anything.

All right. I think we finished. Thank you all for joining us. Have a nice day.

Hello, and welcome to this webcast. I'm Konstantinos 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.

Now let's have a look at our P&L statement. Sales continue to show strong growth with an increase of 28.2%, exceeding EUR 328 million. Most of this growth is attributed to higher selling quantities while the price effect is estimated of about 2%. Gross profit margin was 27%, which is 2.7 percentage points lower than that of 2024. EBITDA was increased by 13.4% and reached EUR 48.3 million with a margin of 14.7%. EBIT show similar increase of 13% at EUR 42.1 million with a margin of 12.8%. It should be noted that profit after tax had a benefit of EUR 1.4 million that relates to a tax relief as a state subsidy for completed CapEx projects. For the previous period, the tax relief was much higher at EUR 5.3 million, 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 for tax exemption in future periods totaling EUR 6.7 million.

Now compared to targets, actual sales figure well exceeded the revised estimate of above EUR 300 million. And also, we achieved the EBIT figure target of EUR 42 million even marginally, but we missed the EBIT margin target by about 1 percentage point. And this difference is translated to about EUR 3 million 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 EUR 1.1 million 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. The 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 U.K. 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.

Moving on to input costs. The graph shows the evolution of raw milk prices. The blue line shows the price of Greek milk, which consists of basic raw material. You can see that it is stubborn stands at high level, a little above EUR 55. On the other hand, with the green color, you can see that the price of 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 to our cost base as it relates to diary 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 to our business, especially if the conflict lasts for long. Given the effects are temporary and energy markets will soon return back, the estimate total surcharge to our cost base is about EUR 5.5 million. The most part of it is currently offset by lower diary commodity prices. And also, we are preparing for price adjustments if the effects to our cost base escalate.

Moving on to segment review. Yogurt export sales saw a strong double-digit growth of 45.7%, exceeding EUR 188 million. It is worth mentioning that yogurt export sales make up about 70% of total yogurt sales. The boost in our sales mostly comes from the major markets of U.K. and Italy. You can see on the graphs that the size of Greek yogurt market in these 2 countries is growing very rapidly. And by the currently available information, we expect this growth at high pace to continue.

Moving on in the domestic market, it seems that the market has entered a growth phase. In 2025, it showed an increase of plus 10% in value and plus 7% in volume. And this positive trend seems to continue during the first month of 2026. Our sales in 2025 have followed the growth of the market. In general, consumer preference for private label yogurt continues, primarily driven by the significant price gap compared to branded yogurts. And although we overall benefit from this development, it exercises pressure to our branded yogurt market share.

In the ice cream segment, in the domestic market, our sales saw an increase of plus 8% 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 touristic areas. In exports, the U.S. 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 launch of Greek frozen yogurt with Sam's Club, a subsidiary of Walmart.

Let 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 of above EUR 390 million. Our EBIT figure is expected to be around EUR 60 million, 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 these estimates. Specifically, sales are showing an increase of over plus 30%, while profitability margins have improved.

Finally, the shareholder structure. Tsinavos family controls about 70% of the share capital. Institutionals abroad have 14%, 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. Thank you.

Thank you all for posting your questions. There are many questions, but I will try to answer as more as possible. Let me start from the beginning. Question about the energy consumption. Energy is about -- was about EUR 7 million in 2025. It is -- we are not a very heavy energy consumer. I think this accounts about 3% of the cost.

A comment of the U.S. market. 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 in mostly Texas state. And also, we have a contract for private label with a large American retailer.

A question about how we see profit margin in 2026. Overall, we see an improvement to the profit margins. This comes both from lower level of raw material prices, along with the initiatives of price adjustments that took place on the second half of 2025.

Questions about our plan to buy new trucks for distribution. We don't own trucks. All the transportation is done by third parties.

The question about how sustainable is the growth of sales. Of course, it is very challenging to keep up growing at such pace. We -- in many cases, we are running out of capacity, especially in periods where demand is peaking. This is why we are having heavy CapEx projects in order to build up our capacity and be able to fulfill the rising demand.

A question about if there are plans to further expand our production capacity after Greek Yogurt Dynamo project. This project is expected to finish -- to be completed by the end of 2027. If we see that we need further expansion, I think we will have a plan -- we set a plan for further CapEx as well.

Question about the tax relief. With the recent application for certification completion of our CapEx projects, we will have about EUR 6.5 million tax relief for the next year. I think EUR 4 million of this will be able for use in 2026 and the rest in 2027.

A question about how much of COGS is Greek raw milk and the Euro milk. Our imports of raw milk is very limited. We mostly use Greek milk, but we import some diary commodities such as butter and proteins.

A question about the U.K. market size. What we are seeing is that the U.K. market is growing at a very high pace and very aggressively. If this trend continues, we might see surpassing the market of Italy in a couple of years.

Question about a contract with Walmart in the U.S. No, we don't have a contract with Walmart. We have with Kroger for private label.

A question about China market. 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 the market -- this market as well.

A question about how the U.S. market is going. 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 what it seems -- that it seems that it will take some time for material sales to come from there.

Question about the CapEx. Most of the CapEx is going to be in the yogurt factory in order to increase capacity.

Question about the EBIT margin. I think I answered this.

Question about the German market. I think we stopped delivering yogurts there. And also, we were delisted from -- at least from some supermarket after a slight price increase that we tried, but sales there were not significant.

Question about Q1 performance. It is a little early to have more details on this. You need to wait a couple of weeks until our first quarter financial statements are released.

Question if our guidance includes the EUR 5.5 million effect of the war. Yes, this is incorporated. And as I said, much part of this is offset by lower diary -- by lower prices of diary quantities.

A question about price adjustments. Last year, we had some price adjustments that were effective mostly from August 2025. We try 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.

Question of why U.K. market is growing that fast. I think it have incorporated most trends of healthy diet that comes along with Greek yogurt. And also the consumption behavior is different there. So yogurt, British mostly consume plain yogurt as food ingredient, whereas Italians consume it as they prefer flavored yogurt and consume it as a dessert.

Expected CapEx for 2026. I think we have this year, it is about EUR 26 million to EUR 30 million.

Question about cocoa prices. Yes, we have seen that cocoa prices and chocolate price have dropped significantly in the first months of 2026, and this will have a positive effect on our ice cream margin.

Question if developments in Middle East can affect milk price potentially increasing cost. Yes, this is a risk. This happened also in 2022. But the energy crisis back then started in June 2021, and it took about 9 months after affecting milk prices. Currently, the case seems different because also raw milk supply is very high all across Europe.

Question about new factory. The project Greek Yogurt Dynamo is not -- relates to expanding our current facilities and not building new factory. And as I said, all production -- all new production lines are expected to be operational by the end of 2027, but these new lines will add to production gradually.

Question about percentage of supermarket contracts that have cost pass-through clauses. This mostly consists of contracts with U.K. retailers. And I think they now consist more than 60% of sales there.

Question about the hypothesis, the assumption of global market. 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 yogurt.

Question about EUR 3 million variable compensation. Part of this consist of increases in salaries and this will be all along the current year 2026. So this will be split evenly. And part of this will be variable compensation, bonus that will affect the last quarter.

Question about the trends. I think I answered this. The assumptions taken for the margin guidance.

As I said, we -- the assumption was that the conflict will end soon. It will not take more than the next 3 or 4 months and energy market will return in the coming months as well. So the effect will be of about 6 to 7 months. Our budgeted sales for U.S. in 2026 are about EUR 5 million.

Question about percentage of sales. We have many retailers that we work with, only 2 of them are -- only 2 customers exceed the 10% threshold. One is U.K. retailer and the second is our customer, the importer that serves the market, the Italian market.

Question about the launch in China. As I said, we have scheduled launch with Greek frozen yogurt. The shipment is on the way, and it is expected on the shelves in the coming months.

Next question I think I answered.

Question about the trend of private label. Currently, domestically, the price gap between branded yogurt price -- branded yogurt and private label is very high. It's about 50%. Normal price gap is about 30%. So if prices -- relative prices remain the same, we expect that private label will continue gaining market share.

Question about our strategy in international market. I think the opportunity lies with international market and our strategy is to capture as much of this growth we can.

Question about assumptions for our guidance. There are some underlying assumptions that we expect to happen, but these are relatively according to current market prices. We don't have any hedging contracts because our raw materials are not reflected to financial instruments at least directly.

Question about our capacity with the Greek Yogurt Dynamo project. We expect to double our capacity compared to 2024.

A question about the growth for the U.K. market looking in the first quarter. The U.K. market continues to grow at a very high pace. I think it is more than 45% or 50%.

A question about our presence in France. In France, we have a small presence, but our focus is on a much higher growing market in order to be able to supply our current customers and not -- and in this way, we delay any business development in other markets.

Question about the legal protection of Greek yogurt against Greek-style. According to the EU legislation, yogurt that is produced in Greece can be called Greek yogurt. Otherwise, it should be called Greek-style. However, in our view, it is not -- 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.

On dividend, the proposed dividend is EUR 0.45. It is increased of about 12% against last year. We have much needs for CapEx, and we expect dividend to increase according to profitability in the coming years.

The question if it makes sense to build production abroad. At this point, it is not on the table because as I explained, in order to call yogurt Greek yogurt, you need to produce it in Greece. So by building factory production unit abroad, we will lose this benefit.

Question about marketing for ice cream. It is not easy to answer, but we try with our commercial strategy to increase our sales in ice cream. And I think we are effective in that way.

Contract with Kroger is not exclusive. But I think it will be important to see the actual appeal that has to U.S. consumers. And I believe that if this is successful, other retailers might follow.

Synergies and cooperation 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.

Question about 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 is to try to meet the rising demand. So some areas like cost control, waste control are left a little behind. And there are opportunities that can improve our margins as well.

Question about acquisitions. No, currently, we don't consider any acquisitions as we see organic growth that it is very high. I think this was the last question.

Thank you all for joining this session. Have a nice day.