Korres : Q3 2014 Financial Results Announcement

KORRES / 9M 2014 FINANCIAL RESULTS

 +28% GROWTH IN CONSOLIDATED SALES

 +95% GROWTH IN EXPORT SALES

 +21% INCREASE IN ADJUSTED EBITDA

 POSITIVE OPERATING CASH FLOW

Substantial consolidated sales growth for Korres Group in 9M 2014 combined with substantially improved operating profitability and strong operating cash flow.
9M 2014 Group's consolidated sales increased by 28% - at 39,4m Euro from 30,9m Euro in the respective period of 2013, as a result of the positive trend in all key markets.
Sales Growth in the International markets with 95% had a key role in Group sales increase, coming from the good performance in the US, as well as the further development of key markets in Europe. Average Sales growth in key markets such as Germany, France, UK, Spain, Scandinavia and Russia, was 36%.
At the same time, sales in Greece continued to grow by 5%, incorporating 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 7,6m euro in 9M 2014 from 6,3m euro in 9M 2013, increased by 21%, as a result of Group sales growth and operational efficiency.
Earnings before interest, taxes, depreciation and amortization (EBITDA), excluding the restructuring cost impact, increased by 33%, reaching 5.3m euro from 4,0m euro in.
Positive Operating cash flow at 3.4 m. Euro in 9M 2014 and further Net Debt reduction.
Net after tax and minority results was -0,1m Euro in the 9M 2014 from -1,9m Euro in the corresponding period of 2013, affected by the extraordinary restructuring cost impact mentioned above.

In Q3 2014, Korres Group continued to deliver significant growth in Greece, as a result of new product launches and effective, coordinated communication campaigns and promotional activities in strategic brand categories.
Specifically,

 Korres in Hair colorants, where the Group has the no1 position in pharmacy since 2001*, materialized a complete communication and promotional plan for the new innovative colorant Argan Oil Advanced Colorant -with the unique Pigment technology that locks the color-including intensive TV and Print campaign, as well as enhanced promotion in Pharmacy.

 In Face/Skin care Korres enriched its product portfolio with intensive and specialized action products including the first cream CC - Wild Rose Color Correcting Cream SPF30. Moreover the company has

further supported the face category through targeted promotional activities in the POS, offering
complete, high quality, reasonable, face care solutions with clinical proven action.

 In the high end perfumery category -which continues with high growth rates since 2008 in the pharmacy channel- Korres introduced two new fragrances, increasing the total offering to a collection

of 10 fragrances.
Outside Greece, the Group continued to focus in North America with its newly founded subsidiary, as well as in Key markets in Europe. Furthermore, Korres Group within the framework of the strategic agreement with AVON, for the production and distribution of Korres products in Latin America, started all the necessary processes in cooperation with AVON towards Korres launch in Latin America next year.

*Data IMS, Category Hair Colorant, 2001- YTD 9/2014

For more information:

PUBLIC RELATIONS / George Anthoulakis / T (+30) 2130 188835 / E george.anthoulakis@korres.com

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