Centrale del Latte d'Italia : The Board of Directors approved the results at 30 September 2017

CENTRALE DEL LATTE D'ITALIA S.p.A.: The Board of Directors approved the results at 30 September 2017.

• Q3 showed significant signs of growth and improvement in terms of turnover and profit margins compared to 1H of this year.
• Consolidated net revenue of € 136 million (+89% vs. € 71.7 million at 30/09/2016, +6% on a like-for-like basis)
• In Q3 2017 consolidated net revenue of € 45.4 million (+98% vs. € 23.2 million in Q3 2016, +14% on a like-for-like basis)
• EBITDA of € 4.9 million (vs. € 1.9 million at 30/09/2016)
• EBIT of € 146 thousand (vs. € -747 thousand at 30/09/2016)
• Net result after tax negative for € 417 thousand not comparable with the result recorded at 30/9/2016.

The Board of Directors of Centrale del Latte d'Italia S.p.A. - a company listed, since 2001, on the STAR segment of Borsa Italiana and currently the third-ranking Italian player in the fresh and long-life milk market, with leadership positions in Piemonte, Liguria, Tuscany and Veneto - today approved the results at 30 September 2017.

During Q3 2017, as illustrated by the Chairman, Luigi Luzzati, the Group showed significant signs of growth and improvement in terms of turnover and margins compared to the results recorded in the first half of the year, thanks to a positive welcome demonstrated by customers for the new products, the recovery of exports and the adjustments made to price lists for sales thanks to the efforts to contain costs.

Following the change to the scope of consolidation, which now also comprises Centrale del Latte della Toscana S.p.A., at 30 September 2017, the Group recorded consolidated net revenue of € 136 million, up 89% compared to the figure of € 71.7 million recorded at 30/9/2016, and with an increase of 6% on a like-for-like basis compared to the first nine months of 2016. During Q3 2017, turnover equalled € 45.4 million, up 98% compared to Q3 III, while on a like- for-like basis, the increase was 14%.

The positive results recorded in Q3 allowed for a significant recovery in profitability, with EBITDA reaching € 4.9 million, compared to € 1.9 million at 30/9/2016 and an EBIT of € 146 thousand at 30/9/2017, compared to the negative figure of €-747 thousand at 30/9/2016.

The consolidated net result after tax at 30/9/2017 was negative for € 417 thousand, and is not comparable with the result recorded at 30/9/2016, because the result deriving from the business combination with Centrale del Latte di Firenze was recognised in the income statement.

The Group's net financial position at 30 September 2017 was negative to the tune of € 62.8 million, compared to the negative figure of € 64.3 million at 30/06/2017.

It should also be noted that a new, completely automated 700-square-metre warehouse for the storage and shipping of finished products was inaugurated at the Centrale del Latte di Vicenza plant on 25 October. The investment falls within the scope of the Supply Chain Contract signed by Centrale del Latte d'Italia S.p.A. and Centrale del Latte di Vicenza S.p.A., which formed a Consortium with the Ministry for Agricultural, Food and Forestry Policies, financed by Cassa Depositi e Prestiti, Unicredit S.p.A. and the Veneto Region Rural Development Plan.

As regards forecasts, the further commercial activities undertaken to safeguard the premium positioning of the Group's brands on the market, the on-going control of costs and the improvement under way in the Italian economy, with an upturn in food consumption, offer sufficient indications to confirm that the economic results achieved during Q3 2017 are likely to continue in Q4.

Pursuant to paragraph 2 of article 154-bis of the Consolidated Finance Law, the Executive in charge of drafting corporate accounts, Mr. Vittorio Vaudagnotti, stated that the accounting information herein contained tallies with the company's documentary evidence, ledgers and accounts.

With 5 factories and some 450 employees, the Centrale del Latte d'Italia Group produces and sells more than 120 products, ranging from milk and milk products to yogurt, drinks of plant origin and fresh salads, distributed in the pertinent areas under the brand names TappoRosso, Mukki, Tigullio and Vicenza and sold both in traditional shops and large retail chains.