Keo PLC — Interim / Quarterly Report 2021

Sep 22, 2021

ANNOUNCEMENT

We inform you that, at the meeting held on 21 September 2021, 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 2021.

Copy of the unaudited Interim Condensed Consolidated Financial Statements for the six month period ended 30 June 2021 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 2021 will be published on 23 September 2021, in the newspaper "Phileleftheros".

22 September 2021

KEO plc

Condensed Consolidated Income Statement for the six month period ended 30 June 2021

	Unaudited
	30 June	30 June
	2021	2020
	$\epsilon$ 000	€000
Turnover	20,068	17,253
Cost of Sales	(13, 534)	(12, 338)
Gross Profit	6,534	4,915
Other operating income	591	187
Sales and distribution expenses	(5, 118)	(4,336)
Administration expenses	(1,638)	(1,371)
Other operating expenses	(35)	(7)
Profit /(loss) from operations	334	(612)
Investment Income, net	701
Finance cost, net	(34)	(72)
Profit / (Loss) before taxation	1,001	(684)
Taxation	81	34
Net profit / (loss) for the period	1,082	(650)

INTERIM MANAGEMENT STATEMENT FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2021

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.

ANALYSIS OF FINANCIAL RESULTS

The Group's turnover for the first six months of 2021 amounted to $\epsilon$ 20,068,000 in comparison to $\epsilon$ 17,253,000 during the same period in 2020, which corresponds to an increase by 16%. The increase in turnover is mainly due to the gradual lifting of the restrictive measures enforced by the Republic of Cyprus in 2020 for the protection of the population from the further spread of Covid-19.

The Group's gross profit for the first six months of 2021 has increased by $\epsilon$ 1,619,000 amounting to $\epsilon$ 6,534,000 which corresponds to an increase by 33% in comparison to the same period during the previous year. The increase in gross profit is due to the increase in turnover as explained above.

Sales and distribution expenses and administration expenses have shown an increase by 18% during the first six months of 2021, in comparison to the same period in 2020. The increase is mainly due to the increase in turnover and to the increase of labour cost which in 2020 was decreased as a result of the Group's participation in the Special Scheme of Partial Suspension of Busisess Operations.

During the first six months of 2021 the Group showed a profit from operations of $\epsilon$ 334,000, as opposed to a loss from operations of $6612,000$ during the same period in 2020, The improvement in the Group's results from operations, in comparison to the same period in 2020, is due to the increase in turnover as descriped above. The profit/loss from operations consists of the Group's turnover after the deduction of the net operating expenses and does not include investement income and net finance cost. The profit/loss from operations constitutes an indication of the Group's performance from its main activities as descriped above and it is not influenced from the performance of investments which are not under the direct control of the Group.

The profit before tax for the first six months of 2021 amounted to $\epsilon$ 1,001,000 (2020: loss $\epsilon$ 634,000) after the deduction of finance expenses $\epsilon$ 34,000 (2020: $\epsilon$ 72,000)

There is not 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 2020.

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.