FAGE: Losses of 1.78 million euros in 2021

Although it holds the leading position in the sector of strained yogurt and its revenues increased, the “last line” of the balance sheet of FAGE Greece Dairy Industry Sole Proprietors SA. showed losses during last year.

In particular, based on the financial statements, published yesterday by the dairy industry, pre-tax profits amounted to losses of 1.78 million euros in 2021 compared to profits of 8.12 million euros in 2020, while net results were also negative at 238 thousand euros from profits of 5.48 million euros.

On the other hand, the turnover of Fage Greece appears to be 146.13 million euros from 134.92 million euros in 2020, recording an increase of 8.3%, however the gross profit fell by 13.5% to 28.15 million compared to 32.59 million in 2020.

War and milk

The dairy industry seems to be facing difficulties this year as well, as as a result of the ongoing conflict between Russia and Ukraine, there has been increased instability in the securities, currency and commodity markets.

“The company is not active in the affected area and does not expect that the war will have a material adverse effect on its operating results or its financial situation,” it said.

It is possible, however, that the conflict will affect raw material prices and the company’s energy and transportation costs, which may have an impact on its operating costs.

It should be noted that the prices of cow’s milk in Greece have increased by close to 30% on an annual basis, as the producer price has reached 48 to 50 cents per kilo compared to 38-39 cents last year. At the same time, however, sales of strained yogurt in supermarkets in the first four months of 2022 recorded a decrease of 14.7% in volume and 10.9% in value.

The transfer of the loan of 50 million and the exchange rates

On December 13, 2018, FAGE Greece, which is the Greek subsidiary of the largest international group of companies FAGE International S.A., entered into a bond loan agreement with FAGE USA Dairy Industry, Inc., amounting to $ 50 million (€ 43.6 million with based on the then current exchange rate). The loan is for 10 years with an interest rate of 5.62%.

On June 15, 2021, the company FAGE USA transferred all the bonds to the parent company FAGE International with the parent company becoming the new bondholder. The duration of the bond loan as well as the interest rate remained unchanged.

This liability on December 31, 2021 and 2020, amounted to 44.14 million euros and 40.74 million euros, respectively. The change of 3.4 million euros is due to the change in the euro-US dollar exchange rate between December 31, 2021 and 2020, the company said.

Net foreign exchange losses on the income statement amounted to 3.06 million euros as credit foreign exchange differences amounting to 339 thousand euros arise from a current account in US dollars.