Yesterday's announcement of the downward revision of guidance for this fiscal year “fits” today with the open possibility that KRI KRI may pass part of the increased cost on to prices from December onward due to the rise in raw materials.
This was stated by chief financial officer Konstantinos Sarmadakis during the analysts' briefing, clarifying that any moves will not be horizontal. On the contrary, those products and markets where there is room for adjustment will be selected, with the main objective being to limit the impact on profitability without losing ground to the competition.
The management believes, however, that it now has greater experience in managing an inflationary environment. As the CFO stated, KRI KRI can react more quickly compared with previous periods of sharp price increases, using targeted interventions in prices if this becomes necessary.
At the same time, KRI KRI has reached a point where the existing yogurt facilities are struggling to keep up with the pace at which demand is increasing. This also has a direct impact on international expansion, as the company chooses not to open multiple fronts at the same time.
To solve this “problem” it is launching a multi-year investment program of 127 million euros for the period 2026-2030. The amount of capital to be directed each year to investments is estimated at between 23 million and 28 million euros.
With the completion of the first phases of the plan, yogurt production capacity is projected to be double in 2028 compared with 2025. By 2030 the target rises even further, as available capacity is expected to approach triple the 2025 levels.
Despite the fact that a large part of growth comes from international markets, KRI KRI is not currently planning to acquire a production base outside Greece.
Management's choice is to channel the new capital into domestic facilities, keeping in Greece the production of Greek yogurt destined for foreign markets.
Likewise, there is currently no plan for growth through acquisitions. As for any investment interest regarding the shareholder structure, the position expressed was that the existing free float offers the possibility for the entry of new investors without requiring other moves.
The European Greek yogurt market continues to be the main driver for the next leg of growth. In this environment, the company has now raised its sales target to close to 400 million compared with a previous estimate that placed turnover above 370 million euros.
The revision follows the strong performance of the first half. From here on, the focus shifts to greater penetration in retail networks.