Hebicide: Profit before tax of EUR 5.2 million

before interest and depreciation (EBITDA) of EUR 5,246 million was presented by Hebroparma SA in 2023, with an increase of 46% compared to 2022. In particular, the consolidated results before tax in 2023 amounted to EUR 2,707 million, showing an increase of 78% over 2022, where the corresponding amount was EUR 1,522 million. Accordingly, the company’s pre-tax results for 2023 amounted to 2,375 million euros, increased compared to the comparative period, where the corresponding amount was 246 million euros. The consolidated result after tax amounted to profits of 2,202m euros in 2023 versus 1,419m euros of 2022 increased by 55% and the company in profits of 2,133m euros compared to 254m euros, respectively. The gross consolidated profit margin was EUR 8,594 million compared to EUR 7,048 million, increased by 22% at consolidated level and EUR 7,020 million, compared to EUR 5,658 million, increased by 24% at corporate level. Finally, the consolidated turnover amounted to EUR 48,761 million compared to EUR 45,381 million with an increase of 7.4%, while the corporate turnover amounted to EUR 40,799 million compared to EUR 37,359 million of the previous year with an increase of 9,2%. The increase in the sales of Hebropharma came mainly from sales abroad, as well as from branded products on the Greek market. At growth rate exports rose 16%, branded sales 14% and private label sales 5%. Development recorded all key product categories as a whole. More specifically, sales of fresh milk and cocoa milk developed 21%, sales of Kefir and Ariani growth 39%, sales of yogurt marginal growth 2%, sales of feta and white cheese growth 13%. In the 1st half of 2023 sales volume decreased due to inflationary pressures and accuracy. However, this decrease was reversed in the 2nd half of 2023 with the company’s sales volume looking up by 4% over the year. The gross profit margin for Hebicide was initially improved by the development of sales of added value products, such as organic products and high protein-containing functional products, innovative products that enjoy high acceptance in foreign markets. At the same time, the completion of investment projects in Didymoteich, which concerned the improvement of production costs, significantly affected the strengthening of the gross margin. In addition, the measures to limit the cost of disposal of products carried out by the company throughout 2023 helped to compensate for the increased wage costs and the highly increased financial costs. Accordingly, the infrastructure in the subsidiary company Campus and the high breeding index helped to contain the gross profit margin despite increased feed prices. Taking into account the results of 2023, the Board of Directors decided to propose the approval of a dividend distribution of 0.05 euros per share at the next Regular General Meeting of the Shareholders. During 2023 the group’s investments continued, completing coal footprint reduction projects of its activities. According to Jewish Farm’s timeless commitment to sustainable and green development, it settled in the factory Two-wall photovoltaic power park 750kW, the new ammonia cooling unit and the installation of a new steam boiler were put into operation. Finally, new reception and storage facilities were built in the subsidiary. At low growth rates the global economy is expected to move, as a result of maintaining interest rates at a high level by the first half of 2024, as well as the geopolitical crisis. The continuing war in Ukraine, the Gaza Strip war, as well as the problems of navigation in the Red Sea, contribute to creating a climate of uncertainty that can lead to a new wave of energy price increases. At the same time, the constant pressure to de-escalate inflation on the Greek market through a reduction in sales prices, increased offers and the implementation of the new measures of the Greek government are expected to compress the gross profit margin of the food industry. The administration of Evropharma, however, maintains a moderate optimism for 2024, closely monitoring the geopolitical developments and the progress of the Greek economy. On the basis of its comparative advantages, which are vertically integrated production, export orientation and broad product mix, it is able to adapt to new data and take advantage of any future opportunity to further improve its economic size. The strategic objective of the management of the group remains the production of high quality self-produced cow milk and the disposal to the final consumer of higher quality dairy and cheese products. In this direction, a significant increase in exports is expected, not only in Europe’s countries but also in third countries. At the same time, a new investment plan will be launched to increase productivity and further improve production costs. Finally, investments in digital transformation will continue to increase competitiveness and improve decision-making.