Keo PLC — Interim / Quarterly Report 2017

Sep 1, 2017

ANNOUNCEMENT

We inform you that, at the meeting held on 31 August 2017, the Board of Directors of KEO plc has examined and approved the Unaudited Interim Condensed Consolidated Financial Statements of the Group for the six month period ended 30 June 2017.

Copy of the Unaudited Interim Condensed Consolidated Financial Statements for the six month period ended 30 June 2017 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 month period ended 30 June 2017 will be published on 1^st of September 2017 in the newspaper "Alithia".

31 August 2017

KEO plc

Condensed Consolidated Income Statement for the six month period ended 30 June 2017

		Unaudited
	30 June 2017 €000	30 June 2016 €000 As revised
Turnover	22.688	21.687
Cost of Sales	(14.062)	(13.494)
Gross Profit	8.626	8.193
Other operating income	143	156
Sales and distribution expenses	(5.738)	(5.358)
Administration expenses	(1.233)	(1.323)
Other operating expenses	(48)	(55)
Profit from Operations	1.750	1.613
Investment Income, net	654	374
Loss on revaluation of available for sale investments Loss on revaluation of fair value through profit		(76)
or loss investments	(670)	(900)
Finance cost, net	(297)	(577)
Income tax interest and charges	(24)	(25)
Loss before taxation	1.413	409
Taxation	(67)	(93)
Net profit for the period	1.346	316

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INTERIM MANAGEMENT STATEMENT FOT THE SIX MONTHS PERIOD ENDED 30 JUNE 2017

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

In addition, the activities of the Group include the import and distribution in the local market of various products such as beer, wine and spirits, juices, bottled water and other canned food.

TURNOVER

The Group's net sales during the first 6 months of the year showed an increase by 4,6% in comparison to the same period in the previous year. The increase is mainly due to the incrase in local market consumption and the increase in the market share held by the products of the Group.

PROFITABILITY

During the first six months of 2017, the Group showed a profit from operations of $\epsilon$ 1,750,000 in comparison to a profit of $\epsilon$ 1,613,000 during the same period in 2016. 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 2017 showed a profit of $\epsilon$ 1,413,000 (2016: profit €409,000) after including loss on revaluation of investements (shares and other securities) of €670,000 (2015: loss €976,000) and finance cost of €321,000 (2015: €602,000). The Group's financial results before taxation also include investement income (dividends) of $\epsilon$ 654,000 (2015: $\epsilon$ 374,000).

There is no other significant information that deserve mentioning and that could influence the evaluation and assessment of the profit and loss statement by the user.

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 2016.

SIGNIFICANT EVENTS AND TRANSACTIONS

The related party transactions during the first six months of 2017 are shown on note 6 of the Condensed Consolidated Financial Statements.

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.