Keo PLC — Interim / Quarterly Report 2016

Aug 4, 2016

ANNOUNCEMENT

We wish to inform you that, at the meeting held on 4 August 2016, the Board of Directors of KEO plc has examined and approved the Unaudited Interim Condensed Consolidated Financial Statements for the six months period ended 30 June 2016.

Copy of the Unaudited Interim Condensed Consolidated Financial Statements for the six months period ended 30 June 2016 is available free of charge at the Company's registered office, 1 Franklin Roosevelt Avenue 3012 Limassol, and in electronic format at the Group's website, www.keogroup.com.

The Condensed Consolidated Income Statement together with the Interim Management Statement for the six months period ended 30 June 2016 will be published on 5 August 2016 in the newspaper "Alithia"

Limassol, 4 August 2016

KEO plc

Condensed Consolidated Income Statement for the six month period ended 30 June 2016

	Unaudited		Audited
	30 June 2016 €000	30 June 2015 €000	31 December 2015 €000
Turnover	21,687	19,683	45,730
Cost of Sales	(13, 831)	(12, 899)	(29, 882)
Gross Profit	7,856	6,784	15,848
Other operating income	156	133	293
Sales and distribution expenses	(5,358)	(5, 364)	(11, 034)
Administration expenses	(1, 323)	(1, 282)	(2,936)
Other operating expenses	(55)	(62)	(134)
Profit from Operations	1,276	209	2,037
Investment Income, net Loss on revaluation of available for sale	374		841
investments (Loss) / Income on revaluation of fair value	(76)	(77)	(138)
through profit or loss investments	(900)	200	(600)
Loss on revaluation of investment property			(2,340)
Finance cost, net	(577)	(741)	(1, 363)
Income tax interest and charges	(25)		(342)
Loss before taxation	72	(409)	(1,905)
Taxation	(49)	5	160
Net profit / (loss) for the period	23	(404)	(1.745)

INTERIM MANAGEMENT STATEMENT FOT THE SIX MONTHS PERIOD ENDED 30 JUNE 2016

The Condensed Interim Consolidated Financial Statements have been prepared in accordance to the provisions of the International Accounting Standard No. 34 «Interim Financial Reporting» and the Securities and Stock Exchange Laws and are non-audited by the Group's External Auditors. Copy of the full document of the Condensed Interim Consolidated Financial Statements is available free of charge at the Company's registered office at 1 Franklin Roosevelt Avenue and at the Group's website, www.keogroup.com.

MAIN ACTIVITIES

The main activities of the Group, which have not changed since the previous year, include the vinification of vine products, the production of beer and juices and bottling of natural mineral water which are distributed in the local market and overseas

TURNOVER

Turnover for the first six months of 2016 amounted to $\epsilon$ 21,687,000 in comparison to $\epsilon$ 19,683,000 during 2015, showing an increase of 10.2%. This increase is mainly due to to the increase in the local market consumption.

PROFITABILITY

During the first six months of 2016, the Group showed a profit from operations of $\epsilon$ 1,276,000 in comparison to a profit of $\epsilon$ 209,000 during the same period in 2015. The improvement in the profitability is mainly due to the increase in turnover.

The Group's financial results before taxation during the first six months of 2016 showed a profit of $\epsilon$ 72,000 (2015: loss €409,000) after including loss on revaluation of investements (shares and other securities) of €976,000 (2015: profit €123,000) and finance cost of €602,000 (2015: €741,000). The Group's financial results before taxation also include investement income (dividends) of $\epsilon$ 374,000 (2015: $\epsilon$ 0).

MAJOR RISKS AND UNCERTAINTIES

The major risks and uncertainties faced by the Group have not changed from those described in the Annual Report of the Company for the year 2015.

SIGNIFICANT EVENTS AND TRANSACTIONS

There have been no significant events and transactions which had an impact in the financial condition of the Company and its subsidiaries, other than the normal operations of the Group.