Koukaki Farm: Increases its profits while the dairy industry shrinks –

Table of Contents

• 1 Three-digit increase in Koukaki Farm’s profits – The ambitious goals for this year
• 2 Exports are “running” with a double-digit growth rate
• 3 Strong investment plan
• 4 According to Dr. Papadopoulos, what are⁣ the key takeaways from Koukaki Farm’s ‍success⁢ story that can‍ be applied by other ​dairy producers facing‌ similar​ market challenges?

Aiming for a turnover of 50 million Koukaki Farm has invested 44.23 million euros this year. euros in 2023, a year in which the family dairy from Kilkis recorded its highest ever sales (+15.90% compared to 2022) and while the overall dairy market fell 4.3% in volume.

Despite last year’s market contraction, which has already been reflected in the shares of major players, such as FAGE, as well as the advance of the private label, Farma Koukakis managed to increase its shares in 11 of the 15 dairy categories in which it operates, while the rise continues this year as well, as stated in the company’s financial statements published yesterday in GEMI .

Three-digit increase in Koukaki Farm’s profits – The ambitious goals for this year

The management of the company, under Athanasios Koukakis, has also set ambitious goals in terms of profitability, as at the end of the current fiscal year, the EBIDTA is expected to reach 6.4 million. euros from 4.63 million euro which was in 2023.

It should be noted that last year’s EBIDTA was improved by 108.41% compared to 2022, an evolution that is mainly attributed to the increase of the gross profit factor by 3.6%.

Profits before taxes amounted in 2023 to 2,373,699 euros, marking an increase of 853.63%, while net debt (loans minus reserves and short-term investments) saw a further decrease and amounted to 5,043,253 euros against 5,830,121 euros of the previous year .

A corresponding improvement in terms of EBIDTA and overall profitability was also presented by the operating cash flows which reached 3,979,653 euros in 2023 compared to -2,292,094 euros of the previous year.

A spectacular increase was recorded in the profit after taxes, since from 159 thousand. euros in 2022 last year jumped to 1.831 million. euro.

Exports are “running” with a double-digit growth rate

For another consecutive year, the company recorded a significant increase in its exports (+27%) with sales in foreign markets reaching 8.8 million in 2023. euros, while the company expects an annual increase of 25% for the next two years, enriching its portfolio with new countries.

It is worth noting that in 2008, when Koukaki Farm first started sending its products to foreign markets, the value of its exports was only 150,000 euros.

In fact, the company offers its products in foreign markets under its own brand name and not through a private label, aiming at the readability of its products outside of Greece, at the positive contribution of exports to the improvement of EBIDTA, limiting its business risk in the choice of products based on the selling price.

Strong investment plan

Koukaki Farm is implementing an investment plan of 20 million for the period 2022-2026. euro. In 2023, the first part of the 4.9 million euro investment plan was completed. euros, through aid measure 4.2.1 of the HYPAAT.

The first part of this investment plan included the installation of new mechanized packaging equipment in the bottling, straining and traditional yogurt departments, increasing the department’s capacity, automatic robotic palletizing in the yogurt overpacking department – ​​reducing labor strain and expanding of the fermentation production department with new tanks doubling the production capacity in products with high added value.

At the same time, through the measures 4399/2016 C cycle as well as the Innovation and Green Transition in the Processing of Agricultural Products, the company in the next period 2024-2026, will carry out investments of about 15 million. euro based on 5 pillars:

1. Reduction of production costs.

2. Reduction of the energy and environmental footprint.

3. Increasing the capacity and productivity of the existing facility.

4. Increasing the level of automation of production lines by installing collaborative robotic systems.

5. Complete digitization of processes using Industry 4.0, Deep Learning and AI technologies.

Specifically, in the next two years, the gas station and the boiler room will be completely modernized, with a new type of equipment with lower electrical consumption, heat recovery, actions that will reduce electricity consumption by 15% and thermal energy by 10%.

The milk processing, with a new receiving silo, a new pasteurization complex and new auxiliary networks, will offer the possibility of servicing the above lines, with new technology equipment.

Great emphasis is placed on fully automatic packaging and
robotic palletization of the products together with the automatic internal handling of the pallets from the production areas to the refrigerator areas.

Also, the building expansion of the main factory is planned in order to increase by 100% the refrigerator spaces as well as the storage space for B’ materials/packaging materials.

Completion of photovoltaic investment

The first photovoltaic installation with a power of 800 KW is completed immediately, as well as the expansion of the PV net metering installation of the company’s distribution branch from 100KW to 250KW, making it virtually energy independent.

The other 600 KW solar installation will be completed by December 2024.

The electrification of both photovoltaic installations will be put into operation by June 2025.

Source: ot.gr