Half Year 2026 Gr Sarantis SA Earnings Call

September 9, 2026

Operator: Welcome, and thank you for joining the Sarantis Group conference call and live webcast to present and discuss the Sarantis Group's H1 2026 financial results. With us today, we have Mr. Ioannis Bouras, Group CEO, and Mr. Christos Varsos, Group CFO. All participants will be in listen only mode, and the conference is being recorded. The presentation will be followed by question and answer session. Should anyone need assistance during the conference call, you may signal an operator by pressing star and zero on your telephone.

Speaker #3: With us today, we have Mr. Ioannis Bouras, Group CEO, and Mr. Christos Varsos, Group CFO. All participants will be in a listen-only mode and a conference has been recorded.

Speaker #3: The presentation will be followed by question-and-answer session. Should anyone need assistance during the conference call, you may signal an operator by pressing star and zero on your telephone.

Speaker #3: As a kind reminder, you may also join the webcast by clicking on the link provided on the invitation. Please be reminded that this presentation contains the formal disclaimer with regards to forward-looking statements.

Operator 2: As a kind reminder, you may also join the webcast by clicking on the link provided on the invitation. Please be reminded that this presentation contains a formal disclaimer with regards to forward-looking statements. The presentation and discussion are conducted subject to this disclaimer. At this time, I would like to turn the conference over to Mr. Ioannis Bouras, Group CEO. Mr. Bouras, you may now proceed.

Operator: As a kind reminder, you may also join the webcast by clicking on the link provided on the invitation. Please be reminded that this presentation contains a formal disclaimer with regards to forward-looking statements. The presentation and discussion are conducted subject to this disclaimer. At this time, I would like to turn the conference over to Mr. Ioannis Bouras, Group CEO. Mr. Bouras, you may now proceed.

Speaker #3: The presentation and discussion are conducted subject to this disclaimer. At this time, I would like to turn the conference over to Mr. Ioannis Bouras, Group CEO, Mr. Bouras, you may now proceed.

Ioannis Bouras: Hello, everyone. Thanks for joining our call for H1 results 2026 today. The agenda is including some highlights for myself, then we continue with Christos Varsos on the financial performance, and then we talk about the outlook before the Q&A session. A few highlights about the H1 2026. First of all, I would like to reconfirm that our group is keeping the focus on our strategy, reconfirmed based on our categories, on our countries, on our region, and of course, as key strategic priorities, which we consistently execute as a group. The digital transformation is well on track. We have concluded significant number of projects and go live events in almost all countries. We have only Poland left for next year. That is what we're working right now. On the CapEx investment, we are on track.

Speaker #2: Hello everyone. Thanks for joining our call for half-year results 2026 today. The agenda is including some highlights for myself. Then we continue with Christos Varsos on the financial performance, and then we talk about the outlook before the Q&A session.

Speaker #2: So a few highlights about the H1 2026. First of all, I would like to reconfirm that our group is keeping the focus on our strategy, reconfirmed based on our categories, on our countries, on our region, and of course the key strategic priorities.

Speaker #2: Which we consistently execute as a group. The digital transformation is well on track. We have concluded significant number of projects and go-live events in almost all countries.

Speaker #2: We have only Poland left for next year. That is what we're working on right now. On the CAPEX investment, we are on track. We have completed and concluded the majority of the massive program, both in digital transformation and in our production facilities, especially in Poland.

Ioannis Bouras: We have concluded the majority of the massive program, both in digital transformation but also in our production facilities, especially in Poland. I have few details later. We continue investing in our people, developing our organization, fit for purpose, and supporting our strategic agenda. The truth is that in H1 2026, we have some significant geopolitical challenges related to Middle East, and this has resulted a significant cost pressure in raw materials and logistics, linked with oil prices and the overall disruption in supply chain in Middle East. As you remember, significant investments concluded by the end of 2025, and these investments helped us to counterbalance significant part of the cost pressure. All of these things are still ongoing. We have challenges in a couple of countries. Ukraine, things are not going very well in the country.

Speaker #2: I have a few details later. And of course, we continue investing in our people, developing our organization, fit for purpose, and of course supporting our strategic agenda.

Speaker #2: The truth is that in the H1 2026, we have some significant geopolitical challenges related to the Middle East, and this is resulted a significant cost pressure in raw materials and logistics, linked with oil prices and of course the overall disruption in supply chain in the Middle East.

Speaker #2: And as you remember, significant investments concluded by the end of 2025, and this investment helped us to counterbalance significant part of the cost pressure.

Speaker #2: And of course, this all of these things are still ongoing. We have challenges in a couple of countries, Ukraine things are not going very, very well in the country.

Speaker #2: There are events that are even harder going—or getting harder—in the last few months. And Romania, there is a country that, although it is one of the biggest countries of the group, there are some market issues related to consumption and, of course, overall market performance.

Ioannis Bouras: There are events that are even going harder in the last few months. In Romania, there is a country that, although is one of the biggest country of the group, there are some market issues related to consumption and overall market performance. The last one is the phasing of our US exports, affecting H1 results. Although the performance in the markets and sellout of our Carroten brand in US is doing really well, I have later some details on that. Key focus, commercial excellence. The hero SKUs remains a strategic focus for our business, winning brands, and we focus on the key brands of the business. Revenue growth management initiatives to compensate cost pressures, focusing on the right SKUs, and the promotional optimization is key part of the market. The innovation, pure and bigger initiatives, working with consumers in the region, still a key priority.

Speaker #2: The last one is the phasing of our US exports. Affecting H1 results. Although the performance in our in the markets in the markets and sell out in both our carrot and brand in US is doing really, really well, and I have later some details on that.

Speaker #2: Key focus: commercial excellence remains a strategic focus for our business, along with winning brands, and we focus on the key brands of the business.

Speaker #2: Revenue growth management initiatives to compensate cost pressures focusing on the right SKUs and the promotional optimization is key part of the market. The innovation pure and bigger initiatives working with consumers in the region still a key priority and the international expansion remains one of the biggest growth pillars for our future.

Ioannis Bouras: The international expansion remains one of the biggest growth pillars for our future. Moving on the numbers, high level numbers. Christos Varsos will continue with details later on. From a top-line point of view 1.3% growth. Gross profit, similar. Underlying EBITDA, plus 0.4. Strong profitability. There is pressure in the margins. There is a pressure in the market performance, and this is also reflected in our results in H1. If we move on our hero brands, which is a major focus. The top 15 brands, almost plus 1%, is 62% of our branded business. There is a clear focus from our business to develop further our brand portfolio, where the major investment, innovation, and activity is taking place. Private label business is stable. So 11.4% of the group sales, and the overall group is EUR 308 million, as I said before.

Speaker #2: Moving on the numbers, high-level numbers, Christos will continue with details later on. Of course, from a top-line point of view, 1.3% growth. Gross profit similar underlying the bida.

Speaker #2: Plus 0.4. Strong profitability. There is, of course, pressure on the margins. There is pressure on market performance, and this is also reflected in our results in H1.

Speaker #2: If we move on on our hero brands, which is a major focus, the top 15 brands plus almost plus 1% is 62% of the of our branded business.

Speaker #2: There is a clear focus from our business to develop further our brand portfolio where the major investment innovation and activities taking place. Private label business is stable.

Speaker #2: It's 11.4% of the group sales, and overall group is €308 million, as I said before. Now, if we move to our categories, in our beauty and skin category, it is minus 2%.

Ioannis Bouras: Now, if we move to our categories. In our beauty and skin, the category is minus 2%. This is reflecting two things. One is the export facing, which is included in this category mainly because of Carroten brand, and the Romania pressure as a market, which is one of the biggest markets in our skincare business. Personal care, 2.7% down. This is also reflecting two things, the promotional pressure from all the competition in the region, and there is a specific category that we are a significant player, is the pregnancy business that is affected mainly, although other categories are performing quite well, both in sales growth plus market share development. Home care solutions, plus 3%.

Speaker #2: This is reflecting two things. One is the export phasing, which is included in this category mainly because of carrot and brand. And the Romania pressure as a market, which is one of the biggest markets in our skincare business.

Speaker #2: Personal care is down 2.7%. This also reflects two things: the promotional pressure from all the competition in the region, and a specific category where we are a significant player—the fragrance business—which is mainly affected. Although other categories are performing quite well, both in sales growth and market share development.

Speaker #2: Home care solutions plus 3%. Here all the investments all the energy the our leadership position in the region plus the focus on our key brands and resulting in very positive momentum for our home care solutions and especially in the garbage bags category the growth is even higher.

Ioannis Bouras: Here, all the investments, all the energy, our leadership position in the region, plus the focus on our key brands, resulting in very positive momentum for our home care solutions. Especially in the garbage bags category, the growth is even higher. This is also absorbing the Ukrainian market, which is mainly home care solutions market for us. Great momentum here, great projects, and of course, we expect things to continue in a positive way in the future. The strategic partnerships part is a good growth rate, +4.9% for the six months. This is because of two things. One, our focus on fewer and better partnerships, that is part of our strategy, and the relevant innovation that we have out of this partnership. So innovation and focus is resulting in better performance for our business.

Speaker #2: And this is also absorbing the Ukrainian the Ukrainian market which is mainly home care solutions market for us. Great momentum here, great projects and of course we expect things to continue in a positive in a positive way in the future.

Speaker #2: The strategic partnerships part has shown a good growth rate, plus 4.9% for the six months. This is because of two things. One, our focus on fewer and better partnerships.

Speaker #2: That is part of our strategy. And the relevant innovation that we had in this from out of this partnership. So innovation and focus is resulting a better performance for our business.

Speaker #2: When it comes to international markets, here there are a few highlights. Related to the first six months, so the majority of the businesses are in for the sun care carrot and brand.

Ioannis Bouras: When it comes to international markets, here there are a few highlights related to the first six months. The majority of the business are in for the sun care Carroten brand. Of course, there is a skincare business in the Philippines, which is also doing very well for our business. If I leave the US last, Australia is a market that is coming up in the H2 of the year. We are listed in the big retailers there, and we are continuing with Carroten brand. Middle East, we had much bigger plans for the H1 of the year. That has been affected by the situation in Middle East. So it's putting the whole H1 for the region under pressure. However, Middle East for us is a long-term shot, so we expect things to improve as the situation progress in the region.

Speaker #2: And of course there is a skincare business in the Philippines, which is which is also doing very, very well for our business. If I leave US last, Australia is a is a market that is coming up in the second half of the year.

Speaker #2: We are listed in a big retailers there and we're continuing with carrot and brand. Middle East, we had a much bigger plans for the first half of the year that has been affected by the situation in Middle East.

Speaker #2: So is putting the whole H1 for the region under pressure. However, Middle East for us is a long-term shot. So we expect things to improve as the situation progress in the region.

Speaker #2: The good thing also you have a new country joining in the second half of the year. This is not in our numbers in the first half.

Ioannis Bouras: The good thing also, you have a new country joining in the H2 of the year. This is not in our numbers in the H1. This is Chile in South America, which is part of our expansion strategy of Carroten brand to Latin America, as a next step for growth among other countries that we are working on. In US, there is a lot of positive developments in the H1 of the year. However, operational reasons and of course, stock holding in the customers in the US and our distributor, resulting this facing issue for the H1 of the year. On the US Carroten now is number one tanning brand in Amazon US and Target, which is one retailer that we are working with.

Speaker #2: This is Chile in South America, which is part of our expansion strategy. Of carrot and brand to Latin America. As a next step for growth among other countries that we are working on.

Speaker #2: In US, there is a lot of positive developments in the first half of the year. However, operational operational reasons and of course stock holding in the customers in the US and our distributor resulting this phasing issue for the first half of the year.

Speaker #2: On the US carrot and now is number one turning turning brand in Amazon US. And Target, which is the one retailer that we are working with.

Speaker #2: And of course as we are speaking right now, we are preparing next year significant upside in our distribution footprint. Especially in brick and mortar stores in physical stores because online we are still very we are very strong in Amazon and we continue to be like this.

Ioannis Bouras: As we are speaking right now, we are preparing next year, significant upside in our distribution footprint, especially in brick-and-mortar stores, in physical stores, because online, we are very strong in Amazon, and we continue to be like this. One thing is the extra distribution, the other thing is the expansion of the assortment, where we are in a very good shape right now, and we are preparing the 2027 season, with a lot of positive feedback and reaction from the customers and the consumers in the US. So Carroten is progressing, and we're expecting a lot of good things coming out in the near future. Coming now to geographies. This is a split between the different countries that we are monitoring. Greece, a positive year. Positive H1. Greek market in specific categories is doing very well, and we are winning over other companies.

Speaker #2: One thing is the extra distribution. The other thing is the expansion of the assortment where we are in a very good shape right now and we are preparing the 2027 season with a lot of positive feedback and reaction from the customers and the consumers in the US.

Speaker #2: So carrot and is progressing and and we expecting a lot of good things coming out in the near future. Coming now to geographies, so this is a split between the different countries that we are monitoring.

Speaker #2: Greece a positive year. Positive first half Greek market in specific categories is doing very well and we are winning over other companies. Select international markets minus 14 is what I explained about the US.

Ioannis Bouras: Selected international markets, minus 14%, is what I explained about the US. Poland, very positive. Romania is having the impact of the market performance. Czech, Slovakia, and Hungary, this cluster of countries continue performing very well. West Balkans is also having a tough six months. However, we see signs of improvement from a market conditions point of view because 2025 and first period of 2026 was quite difficult. Bulgaria is positive and of course, Ukraine reflecting the impact of the market situation. The transformation agenda, as I said, digital transformation, all the new SAP implementation is in place. As we speak, we have implemented the majority number of the countries. There were two countries left, one for next year, which is Poland. We are very near to the final go live day, is going to be in January 2027, and Ukraine will follow later on.

Speaker #2: Poland very positive. Romania is having the impact as of the market performance. Czech Slovakia and Hungary this cluster of countries continuing performing very well.

Speaker #2: West Balkans is also having a tough six months. However, we see signs of improvement from a market conditions point of view because 2025 and first period of 2026 was quite difficult.

Speaker #2: Bulgaria is positive and of course Ukraine reflecting the impact of the market situation. The transformation agenda as I said digital transformation all the new SAP implementation is in place.

Speaker #2: As we speak, we have implemented the majority of the countries. There are two countries left, with one planned for next year, which is Poland. We are very near to the final go-live date, which is going to be in January 2027.

Speaker #2: And Ukraine will follow later on. From a planning point of view, we have completed all the investments, improving our planning accuracy. And of course, all the digital tools enhancing our digital capabilities have been implemented in the business.

Ioannis Bouras: From a planning point of view, have completed all the investments, improving our planning accuracy, and of course, all the digital tools, enhancing our digital capabilities have been implemented in the business. Manufacturing and break, we have concluded almost everything in our Stella Pack regranulation business. We are getting the benefits in 2026, but of course, benefits will even further improve as we are moving on in the H2 of the year and 2027 as well. Our innovative plan in Greece, the expansion is also in progress. By the end of 2026, we expect to complete also the investments there related to our skincare and sun care expansion, both in the region and the international markets. Of course, all these CapEx supporting also the sustainability agenda for the group. From the ESG point of view, we are improving our ratings.

Speaker #2: Manufacturing and break we have concluded almost everything in our Stella pack regeneration business. And we are now we are getting the benefits into NT26 but of course benefits will even further improve as we moving on in the second half of the year and 2027 as well.

Speaker #2: Our innovative plan in Greece the expansion is also also in progress. By the end of 2026 we expect to complete also the investments there related to our skincare and sun care expansion both in the region and the international markets.

Speaker #2: And of course all these capex supporting also the sustainability agenda for the group. From the ESG point of view we are improving our ratings we are in line with our with our commitments for reduction of SCOPE 1 1 and SCOPE 2 emissions 42% by 2030 by reducing 11.5% for this year.

Ioannis Bouras: We are in line with our commitments for reduction of Scope One and Scope Two emissions, 42% by 2030, by reducing 11.5% for this year. Of course, we have improved the ratings, all the raters, improving the scores on our sustainability agenda. This is the intro from my side. I will pass over to Christos right now to give you more details about the financial performance.

Speaker #2: And of course, we have improving the ratings, all the raters improving the scores on our sustainability agenda. So this is the intro from my side.

Speaker #2: I will pass over to Christos right now to give you more details about the financial performance.

Speaker #1: Thank you Yianni. Let me now provide some details behind the key numbers Yianni described. As you will see we share underlying and reported numbers.

Christos Varsos: Thank you, Giannis. Let me now provide some details behind the key numbers Giannis described. As you will see, we share underlying and reported numbers. The difference between the two relates where a one-off event, the sale of the old non-operating factory of Polipak. The difference from the value, the brokerage fees and other expenses relevant to this was EUR 0.8 million. Thus, the underlying P&L is the ongoing one. The difference between underlying and reported is only this one, so this influences all lines from EBITDA down to EBIT all the way to net profit. We should note here that maintaining the non-operating factory had annual expenses of almost EUR 0.5 million. Thus, after the sale, we will save this going forward, starting from the relevant portion in H2. Our net sales grew by 1.3% compared to 2025.

Speaker #1: The difference between the two relates to one of one off event the sale of the old non-operating factory of Polybag. The difference from the value the brokerage fees and other expenses relevant to this was 0.8 million.

Speaker #1: Thus the underlying P&L is the ongoing one. The difference between underlying and reported is only this one. So this influences all lines from EBITDA down to EBIT and all the way to net profit.

Speaker #1: We should note here that maintaining the non-operating factory had annual expenses of almost $0.5 million, but after the sale, we will save this going forward, starting from the relevant portion in half year two.

Speaker #1: Our net sales grew by 1.3% compared to 2025 with focus on our core categories especially on our branded business which influenced favorably the mix of sales.

Christos Varsos: We focus on our four categories, especially on our branded business, which influenced favorably the mix of sales. Majority of our geographies did well, with decline though on Romania and Ukraine, which influenced the performance. Also, we have the phasing elements on our sales of US, which influenced the H1 but will be normalized in the H2. In terms of price increase, these were minor H1, and the actual pricing is expected to be effective in Q4. Our gross profit margin remained flat at 38.6%. We started seeing improvement in cost of goods sold as a result of our investments in our production capabilities and the regranulation in Poland. However, this have balanced the pressure in the supply chain from the ongoing Middle East conflict, leading eventually to the same gross profit margin.

Speaker #1: Majority of our geographies did well with decline though in Romania and Ukraine which influenced the performance. Also we had the phasing element on our sales of US which influenced the first half but will be normalized in the second half.

Speaker #1: In terms of price increase these were minor half year one and the actual pricing is expected to be effective in Q4. Our gross profit margin remained flat at 38.6%.

Speaker #1: We started seeing improvement in cost of goods sold as a result of our investments in our production capabilities and then in granulation in Poland.

Speaker #1: However, this has balanced the pressure in the supply chain from the ongoing Middle East conflict, leading eventually to the same gross profit margin. Underlying EBITDA grew marginally to €48.5 million, with pressure also in the cost of transportation, despite—as mentioned—the mixed performance and the cost benefit from our investments.

Christos Varsos: Underlying EBITDA grew marginally to EUR 48.5 million, with pressure also in the cost of transportation, despite, as mentioned, the mixed performance and the cost benefit from our investments. Underlying EBITDA margin was flattish at 15.7%. Underlying EBIT, EUR 36.7 million, posted a 2% decline compared to prior year, with a margin of 11.9%. Financial expenses in 2026, although improved in terms of interest expense following the prepayments of loans, especially the H2 of prior year, were impacted by more than EUR 1 million negative, mainly due to the devaluation of the loan. Following this, our underlying earnings before tax declined to EUR 34.8 million from EUR 36.5 million in 2025, with EBIT, earnings before tax margin of 11.3%. Underlying net income of EUR 27.7 million, down by 5% versus EUR 29.2 million in 2025, leading to underlying earnings per share at EUR 0.44.

Speaker #1: Underlying EBITDA margin was flattish at 15.7%. Underlying EBITDA 36.7 million posted a 2% decline to prior year with a margin of 11.9. Financial expenses in 2026 although improved in terms of interest expense following the prepayments of loans especially the second half of prior year were impacted by more than 1 million negative mainly due to the devaluation of their own.

Speaker #1: Following this our underlying earnings before tax declined to 34.8 million from 36.5 in 2025 with EBIT earning before tax margin of 11.3%. Underlying net income of 27.7 million down by 5% versus 29.2 in 2025 leading to underlying earnings per share at 44 cents.

Speaker #1: Moving now to our product categories so you can understand more about the dynamics in the first six months of the year. Only private label is impacted by the sale of the old factory and has difference between underlying and reported.

Christos Varsos: Moving now to our product categories so you can understand more about the dynamics in the first six months of the year. Only private label is impacted by the sale of the old factory and has difference between underlying and reported. Starting with beauty, skin, and sun care. This category, as you know, is a key pillar important for our organic growth plans. In H1 2026, net sales declined by 2% to EUR 54 million, impacted by the phasing of our US exports in H1, which will be normalized in H2 and by performance in Romania. However, despite the net sales pressure, category EBIT grew by 7.4% and EBIT margin grew by 280 bps above last year to almost 32%, affected by the mix within the category. Personal care.

Speaker #1: Starting with beauty skin and sun care. This category as you know is a key pillar important for our organic growth plans. We have year one 2026 net sales declined by 2% to 54 million impacted by the phasing of our US exports in half year one which will be normalized in half year two and by performance in Romania.

Speaker #1: However despite the net sales pressure category EBIT grew by 7.4% and EBIT margin grew by 280 pips above last year almost 32% affected by the mix within the category.

Speaker #1: Personal care. In terms of personal care this was the category with the strongest promotional pressure from a competition and with decline in the subsegment of fragrances.

Christos Varsos: In terms of personal care, this was the category with the strongest promotional pressure from the competition and with decline in the subsegment of fragrances. We had a decline of 2.7% of net sales compared to prior year, with EBIT being impacted further by 17% to reach EUR 7 million EBIT with EBIT margin of 14.2%. Home care solutions. Home care solutions grew by 3% to EUR 95 million, with EBIT growing ahead of net sales by EUR 3.6 million to EUR 10.8 million, with EBIT margin being stable. Private label sales were flat at EUR 35.2 million compared to prior year with break-even EBIT. We remind you that we use private label on a tactical basis to absorb costs from branded business and will over time increase branded business and decrease the private label portfolio. Finally, strategic partnerships.

Speaker #1: We had a decline of 2% 2.7% of net sales compared to prior year with EBIT being impacted further by 17% to reach 7 million EBIT with EBIT margin of 14.2.

Speaker #1: Home care solutions. Home care solutions grew by 3% to 95 million with EBIT growing ahead of net sales by 3.6 million to 10.8 million.

Speaker #1: With EBIT margin being stable. Private label sales were flat at €35.2 million compared to prior year, with break-even EBIT. We remind you that we use private label on a tactical basis to absorb cost from branded business and will, over time, increase branded business and decrease the private label portfolio.

Speaker #1: Finally, strategic partnerships. We had an increase in our sales of 4.9%, mainly driven by mass distribution, which rose by 12%, while the selective business declined by 9% in the period.

Christos Varsos: We had an increase of our sales by 4.9%, mainly driven by mass distribution, which rose by 12%, while selected business declined by 9% in the period. The EBIT declined by more than 30% to EUR 1.9 million, driven mainly by selective distribution, especially in Romania. As mentioned, the total group will have a solid net sales performance reaching EUR 308.3 million, and we have underlying EBIT at EUR 36.7 million, with EBIT margin of 11.9%. Turning now to our geographies. The underlying reported classification only affects Poland. For Poland, we are also splitting between branded products and private label to allow for better understanding of the dynamics. Greece domestic market grew by 1.9% to EUR 81.6 million, with EBIT being flat and EBIT margin moving by 30 bps.

Speaker #1: The EBIT declined by more than 30% to 1.9 million driven mainly by selective distribution especially in Romania. As mentioned the total group we have a solid net sales performance reaching 308.3 million and we have underlying EBIT at 36.7 million with EBIT margin of 11.9.

Speaker #1: Turning now to our geographies. The underlying reported classification only affects Poland. For Poland we are also splitting between branded products and private label to allow for better understanding of the dynamics.

Speaker #1: Greece domestic market grew by 1.9% to 81.6 million with EBIT being flat and EBIT margin marginal below moving by 30 pips. Selective international markets net sales came below prior year to 15 million euros as a result of the phasing that we mentioned earlier in our US export.

Christos Varsos: Selected international markets net sales came below prior year to EUR 15 million as a result of the phasing that we mentioned earlier in our US export. This is expected to normalize in the H2. EBIT was also impacted by this, declining to EUR 6 million. EBIT margin remains at the 40% level, the highest in the group, declining just marginally by 89 bps. Selected international markets remain a key focus for our growth strategy, having the strongest margin, and as Giannis described earlier, we expect this to grow in distribution, especially next year. In Poland, the total business had net sales of EUR 94.3 million, a 4.9% increase versus prior year, with EBIT growing by 20% driven by branded business. The branded portfolio grew by 2.3% to EUR 65.7 million, with the branded business EBIT grew by almost 12%, and the private label EBIT improved as well in low margins, though.

Speaker #1: This expected to normalize in the second half. EBIT was also impacted by this by this decline to 6 million. The EBIT margin remains at the 40% level the highest in the group declining just marginally by 89 pips.

Speaker #1: Select international markets remain a key focus for our growth strategy having the strongest margin and as Yannis described earlier we expect this to grow in distribution especially next year.

Speaker #1: In Poland, the total business had net sales of €94.3 million, a 4.9% increase versus the prior year, with EBIT growing by 20%, driven by the branded business.

Speaker #1: The branded portfolio grew by 2.3% to €65.7 million, while the branded business EBIT grew by almost 12%, and the private label EBIT improved as well, though in low margin.

Speaker #1: In other territories we had a mixed picture driven by specifics in each country. Romania continues the declining trend started on the second half of last year with 44 million of net sales a decline of almost 5% versus versus prior year.

Christos Varsos: In other territories, we had a mixed picture driven by specifics in each country. Romania continues a declining trend started on the H2 of last year with EUR 44 million of net sales, a decline of almost 5% versus prior year. In terms of EBIT, Romania sits EUR 5.7 million, representing a decline of 16.8%, with EBIT margin at 13%, declining almost 200 bps. We expect this trend to continue in the H2 as well. Czech, Slovakia, and Hungary accelerated growth by adding 11.5% more net sales, reaching almost EUR 35 million, with EBIT of EUR 4.5 million, which is a 22% increase to prior year. In terms of EBIT margin, this improved by 109 bps, reaching 12.9%. West Balkans showed a decline in the net sales of 4.9% to EUR 18 million, mainly impacted by the Serbian market.

Speaker #1: In terms of EBIT Romania achieved 5.7 million representing a decline of 16.8% with EBIT margin at 13% declining almost 200 pips. We expect this to this trend to continue in the second half of the year as well.

Speaker #1: Czech Slovakia and Hungary accelerated growth by adding 11.5% more net sales reaching almost 35 million with EBIT of 4.5 million which is a 22% increase to prior year.

Speaker #1: In terms of EBIT margin, this improved by 109 basis points, reaching 12.9%. West Balkans showed a decline in net sales of 4.9% to €18 million, mainly impacted by the Serbian market.

Speaker #1: In terms of EBIT delivery, West Balkans declined EBIT to €1.2 million from €1.6 million in 2025, and then the EBIT margin dropped to 6.8%.

Christos Varsos: In terms of EBIT delivery, West Balkans declined EBIT to EUR 1.2 million from EUR 1.6 million in 2025, and the EBIT margin dropped to 6.8%. West Balkans are expected to improve in H2. For Ukraine, this is another year of pressure in the results, as identified already from our full year results discussion. The net sales dropped by almost 10% to EUR 9.5 million, and EBIT continued in the negative territory, declining further to EUR -0.7 million loss. As the geopolitical conflict in the area continues, and as we witnessed lately, it accelerates, we expect additional pressure from Ukraine in the H2 as well. Moving now to our healthy and strong balance sheet. As we have also discussed in the past, we maintain a strong balance sheet which can support our organic growth, the next stage of our transformation agenda, and M&A activities.

Speaker #1: West Balkans are expected to improve in half year two. For Ukraine this is another year of pressure in in the results as identified already from our full year results discussion.

Speaker #1: The net sales dropped by almost 10% to 9.5 million and EBIT continued in the negative territory declining further to 0.7 million loss. As the geopolitical conflict in the area continues and as we witnessed lately it accelerates we expect additional pressure from Ukraine in the second half of the year as well.

Speaker #1: Moving now to our healthy and strong balance sheet. As we have also discussed in the past, we maintain a strong balance sheet, which can support our organic growth, the next steps of our transformation agenda, and M&A activities.

Speaker #1: As of June 30th, we had net debt of €29.6 million compared to €32.8 million in net debt on June 30th, 2025. In 2025, we also received €20.8 million from a sale order, whereas in 2026 we did not have a similar amount received.

Christos Varsos: As of 30 June, we had net debt of EUR 29.6 million compared to EUR 32.8 million net debt on 30 June 2025. in 2025, we have also received EUR 20.8 million from sale of Loders, while in 2026 we did not have a similar amount received. I remind you that due to seasonality, our worst net debt positions on 30 June were at the best 31 December. Already today, as we speak, net debt is largely improved versus June, standing at EUR 19 million. But by year-end, we should again be at net cash position. in H1 2026, we have improved our working capital by 2 days, releasing extra cash to the business. As we have discussed also in the full year results, in the last quarter of 2025, we have made early debt repayments of EUR 17 million, reducing our financing expenses this year.

Speaker #1: I remind you that due to seasonality our worst net debt positions on 30th of June whereas the best is 31st December. Already today as we speak net debt is largely improved versus June standing at 19 million.

Speaker #1: As by year end we should again be at net cash position. In half year one 2026 we have improved our working capital by two days releasing extra cash to the business.

Speaker #1: As we have discussed also in the full year results in the last quarter of 2025 we have made early debt prepayment of 17 million reducing our financing expenses this year.

Speaker #1: We have now informed one of our lenders for a €7.5 million prepayment to be executed by the end of this month, enhancing further our earnings per share.

Christos Varsos: We have now informed one of our lenders for a EUR 7.5 million prepayment to be executed by end of this month, enhancing further our earnings per share. We also expect another low prepayment in Q4. Finally, as of today, we have committed loan facilities of EUR 120 million as a war chest for future acquisitions. Enhancing our shareholder value is key for us. Underlying earnings per share is 44 cents from 46 cents last year, declined by 4%. During the first half, we paid dividend of EUR 25 million or 39 cents per share, representing a 25% increase compared to EUR 20 million paid last year. This represented a 47.1 payout ratio versus 43.5 payout ratio last year. I would like now to provide an update on our CapEx for this year.

Speaker #1: We also expect another low prepayment in Q4. Finally as of today we have committed loan facilities of 120 million as a war chest for future acquisitions.

Speaker #1: Enhancing our shareholder value is key for us. Underlying earnings per share is 44 cents from 46 cents last year declined by 4%. During the first half we paid dividend of 25 million or 39 cents per share representing a 25% increase compared to 20 million paid last year.

Speaker #1: This represented a 47.1 payout ratio versus 43.5 payout ratio last year. I would like now to provide an update on our capex for this year.

Speaker #1: Our new capex expectation for 2026 is for 22 million from 20 million we'll communicate earlier this year which will complete most of our big projects.

Christos Varsos: Our new CapEx expectation for 2026 is for EUR 22 million from EUR 20 million we communicated earlier this year, which will complete most of our big projects. EUR 18 million was deployed already. Now coming to our outlook. The group continues to monitor the ongoing geopolitical volatility to mitigate as far as possible the resultant pressure on raw materials, energy, and logistic costs. Pressure continues in terms of cost in Q3, while the price increases are expected to be largely in place from September late and mostly in Q4. Complexity is further amplified by local pressures, mainly within the Romanian and Ukrainian markets. Our strong brands, disciplined execution, sharp focus on cost control, and commitment to our strategic priorities provide confidence to continue safeguarding healthy profitability. As the current environment is pretty liquid, we will be able to provide updates on the outlook later in the year if needed.

Speaker #1: 18 million was all was deployed already. Now coming to our outlook. The group continues to monitor the ongoing geopolitical volatility to mitigate as far as possible the resultant pressure on raw materials energy and logistic cost.

Speaker #1: Pressure continues in terms of cost in Q3 while the price increases are expected to be largely in place from September 8th and mostly in Q4.

Speaker #1: Complexity is further amplified by local pressures, mainly within the Romanian and Ukrainian markets. Our strong brands, disciplined execution, sharp focus on cost control, and commitment to our strategic priorities provide confidence to continue safeguarding healthy profitability.

Speaker #1: As the current environment is pretty liquid we will be able to provide updates on the outlook later in the year if needed. Thank you very much.

Christos Varsos: Thank you very much.

Speaker #2: Ladies and gentlemen at this time we will begin the question and answer session. Anyone who wishes to ask a question may press star followed by one on their telephone.

Operator 2: Ladies and gentlemen, at this time, we will begin the question and answer session. Anyone who wishes to ask a question may press star followed by 1 on their telephone. If you wish to remove yourself from the question queue, then you may press star and 2. Those participating via the webcast, you may submit your written questions using the Ask a Question window. To our audio participants, please use your handset when asking your question for better quality. Anyone who has a question may press star and 1 at this time. One moment for the first question, please. The first question comes from the line of Iakovos Kourtesis with Piraeus Securities. Please go ahead.

Operator: Ladies and gentlemen, at this time, we will begin the question and answer session. Anyone who wishes to ask a question may press star followed by 1 on their telephone. If you wish to remove yourself from the question queue, then you may press star and 2. Those participating via the webcast, you may submit your written questions using the Ask a Question window. To our audio participants, please use your handset when asking your question for better quality. Anyone who has a question may press star and 1 at this time. One moment for the first question, please. The first question comes from the line of Iakovos Kourtesis with Piraeus Securities. Please go ahead.

Speaker #2: If you wish to remove yourself from the question queue then you may press star and two. Those participating via the webcast you may submit your written questions using the ask a question window.

Speaker #2: To our audio participants please use your handset when asking your question for better quality. Anyone who has a question may press star and one at this time.

Speaker #2: One moment for the first question please. The first question comes from the line of Iakovos Kourtesis with Piraeus Securities. Please go ahead.

Speaker #1: Yes, good afternoon, gentlemen. My first question: as far as I understand, you said you're going to provide an update on the outlook later in the year.

Iakovos Kourtesis: Yes. Good afternoon, gentlemen. My first question, as far as I understand, you said you are going to provide an update on the outlook later in the year. However, taking into account that we are almost close to the 9-month period, and your initial guidance for the year calls for EUR 620 million in sales, +3.4% and EBITDA of EUR 97 million. It seems that taking into account your performance until now and the relevant headlines in Ukraine and Romania, would you say how confident are you that you are going to achieve this guidance? My second question has to do with the fact that you ensured the firepower of financing of EUR 120 million for future acquisitions. How close are you to close any acquisitions? If you could identify for us potential geographies, what will be your strategy for acquisitions going forward?

Speaker #1: However taking into account that we are almost close to the nine month period and your initial guidance for the year it calls for 620 million in sales plus 3.4% an EBITDA of 97 million it seems that taking into account your performance until now and the relevant headlines in Ukraine and Romania wouldn't would you say how confident are you that you are going to achieve this guidance?

Speaker #1: My second question has to do with the fact that you ensured firepower of financing of €120 million for future acquisitions. How close are you to closing any acquisitions, and if you could identify for us potential geographies, what will be your strategy for acquisitions going forward? Which parts of the business are you targeting for acquisitions going forward?

Iakovos Kourtesis: Which parts of the business are you targeting for acquisitions going forward? Thank you very much.

Speaker #1: Thank you very much.

Speaker #3: Thank you Iakovos. Thank you for the for the questions. Related to the guidance I think that's why because we said the environment is very volatile and there's a lot of un uncertainties around.

Christos Varsos: Thank you, Iakovos.

Ioannis Bouras: Thank you for the questions. Related to the guidance, I think that's why, because we said the environment is very volatile and there's a lot of uncertainties around. Of course, we see things, and we say that we can commit for a more accurate number later on the year. I think what we said is there's a lot of pressure in the market, but at this moment in time, we cannot commit to a specific number. Related now to the EUR 120 million facility, what we know, Sarantis Group has been proven over the years that is always there in the market. The strategy has not changed. We still focus on our Eastern Europe territory because, as we said, we focus on categories and geographies that we're already present, which also give us the benefits of synergies, same channels, and of course, same categories that we have the knowledge.

Speaker #3: Of course we see things and we say that we can commit for a more accurate number later on the year and I think what we said is there a lot of pressure in the market but at this moment in time we cannot commit to a specific number.

Speaker #3: Related now to the €120 million facility, what we know is that Sarantis Group has proven over the years that it is always there in the market.

Speaker #3: The strategy has not changed. We still focus on our Eastern Europe territory. Because as we said we focus on categories and geographies that we already present.

Speaker #3: Which is also give us the benefits of synergies same channels and of course same categories that we have the knowledge. And and we continue to do that.

Ioannis Bouras: We continue to do that. So there is no new geography in the horizon for us at this moment in time. Also, what we see since the beginning of the year, although in the previous years, there was theoretical interest for potentially new targets that were more theoretical interest, now we have seen more specific processes coming through, meaning that we have more robust and more, how to say, specific processes around potential targets. However, as we speak right now, we cannot say any specific things related to any potential M&A.

Speaker #3: So there is no new geography in the in the in the horizon for us at this moment in time. And also what we see since the beginning of the year although in the previous years there was theoretical interest for potentially new targets that they were more theoretical interest now we are see more specific processes coming through.

Speaker #3: Meaning that we have more robust and more, how to say, specific processes around potential targets. However, as we speak right now, we cannot say any specific things related to any potential M&A.

Speaker #1: Okay okay and my if I may one last question relating to your five year plan I I suppose that going forward for 2027 2028 your target remains intact.

Iakovos Kourtesis: Okay. If I may add one last question, relating to your five-year plan, I suppose that going forward for 2027, 2028, your plan remains intact going forward. Is this correct?

Speaker #1: Your plan remains intact going forward. Is it is this correct?

Speaker #3: Yes. Yes it is. Yes it is.

Ioannis Bouras: Yes. Yes, it is.

Christos Varsos: Yes, it is.

Speaker #1: Okay thank you very much.

Iakovos Kourtesis: Okay. Thank you very much.

Speaker #3: 120 million by 2028. December 2028 EBITDA 120 million.

Christos Varsos: EUR 120 million by December 2028, EBITDA EUR 120 million.

Speaker #1: Thank you very much.

Iakovos Kourtesis: Thank you very much.

Speaker #2: The next question comes from the line of Natalia Zviriadi with Eurobank Equities. Please go ahead.

Operator 2: The next question comes from the line of Natalia Svyrydova with Eurobank Equities. Please go ahead.

Operator: The next question comes from the line of Natalia Svyrydova with Eurobank Equities. Please go ahead.

Speaker #4: Good afternoon. Thank you for taking my questions. I hope you can hear me. I was wondering if we could get an indication well we can't we can't get a number for the full year but an indication of the of the current running rate we saw in in H1 sales up 1.3%.

Natalia Svyrydova: Well, good afternoon, and thank you for taking my questions. I hope you can hear me. I was wondering if we could get an indication. Well, we cannot get a number for the full year, but an indication of the current running rate. We saw in H1 sales up 1.3%. Was this mainly volume driven? How has this been evolving for Q3 to date or on what you are looking into current figures on the top line so we could probably understand if the remaining sales, we should be expecting the 3% rise or something closer to 1.5%? On top of that, I would like to understand a bit to get some color on the operating expenses rise. The gross margin was stable in H1, so probably the pressure, okay, apart from the 800,000 coming obviously from the disposal of the plant.

Speaker #4: Was this mainly volume driven and how has this been been evolving well Q3 to date or or you know on what you're looking and and into current current figures on the top line so we could you know probably understand if the the remaining sales would we should be expecting the 3% rise or or something like closer to one one one one one and a half percent.

Speaker #4: And on top of that I would like to understand a bit to get some color on the operating expenses rise the gross margin was stable in H1 so probably the the pressure okay apart from the 800,000 coming from from obviously from the from the disposal of the plant the remaining operating expenses will have have had this pressure.

Natalia Svyrydova: The remaining operating expenses will have had this pressure. Where did this come from, and have you seen this continuing? Should we expect this to continue? I am trying to understand a bit the dynamics of the margins and how much we will be able to catch up to the year-end, based on current numbers you have. Thank you very much.

Speaker #4: Where did this come come from and have you seen this continuing should we expect this to continue? I'm trying to understand a bit the dynamics of the margins and how much you we will be able to catch up up to the year end well based on current numbers you have.

Speaker #4: Thank you very much.

Speaker #3: Thank you Natalia.

Ioannis Bouras: Based on the numbers for the second half of the year, we expect a higher growth rate from a top-line point of view, because the 1.3 needs to accelerate. This is minimum you can have in the second half of the year, but we are aiming for higher than that. Related to the operating expenses, first of all, on the margins point of view, as you saw from the mix of the category sales, we see that the strategic partnerships part of the business is growing faster than the rest. This is affecting significantly the mix of our portfolio and of course, the overall margin of the business. Related to operating expenses, apart from the one that Christos mentioned, there is also some impacting.

Speaker #1: Based on the numbers for the second half of the year we expect a higher growth rate from the top line point of view. Because the 1.3 needs to accelerate it so this is minimum you can have in the second half of the year but we are aiming for higher than that.

Speaker #1: And related to the operating expenses, first of all, on the margins point of view, as you saw from the mix of the category sales, we see that the partnerships, the strategic partnerships part of the business, is growing faster than the rest, right?

Speaker #1: This is affecting significantly the mix of our portfolio and of course the overall margin of of the business. Related to operating expenses apart from the one that Christos mentioned there is also some impacted we'll have the impact on the transportation transport expenses because of the kind of the fuel and everything else that related to the middle east crisis and that was really the part which was not coming from our let's say what we have under control it was it was more of the external determined operating expenses.

Christos Varsos: That is true. That will have the impact on the transportation and transport expenses because of the fuel and everything else that related to the Middle East crisis. That was really the part which was not coming from our, let us say, what we have under control. It was more of the external that determined operating expenses.

Speaker #1: And also is a little bit more depreciation that is affecting the operating expenses related to the capex investments over the last few years that is coming into gain in the play yeah.

Ioannis Bouras: Also is a little bit more depreciation that is affecting the operating expenses related to the CapEx investments over the last few years that is coming into gain, into play.

Christos Varsos: In the difference to EBITDA and the EBIT.

Ioannis Bouras: A bit, yeah. Okay.

Speaker #1: Okay.

Speaker #4: Okay yes yes that's what I was trying to understand if transport expenses so probably these will continue it has to be tough given that fuel oil is is on the rise again.

Natalia Svyrydova: Okay. Yes. That's what I was trying to understand, if transport expenses, probably these will continue to be tough, given that fuel oil is on the rise again. I was trying to understand.

Speaker #4: So yeah I was trying to.

Christos Varsos: Think about also in Q3. What we have in Q3 is that we have the pressure from cost, but the pricing will start with Q4. Potentially this will be a bit weaker point.

Speaker #1: Think about also in Q3 what we have in Q3 is that we have the pressure from cost but the pricing will start will hit in Q4.

Speaker #1: So potentially this will be a bit will you know it has the weaker point.

Speaker #4: Oh okay okay thanks for for clarifying that. Do you have a I don't know if you have a number how how volumes are evolving like in in in the top line.

Natalia Svyrydova: Oh, okay. Thanks for clarifying that. I don't know if you have a number, how volumes are evolving, like in the top line.

Ioannis Bouras: We have said the portfolio of Sarantis Group is so diverse that volume wise, you have to go category by category. I can tell you right now, because the first six months, there is no price increase in the first six months from a sales point of view. All the volume that we have is volume-driven growth.

Speaker #1: We have said many the the portfolio of Sarandis Group is so diverse that is volume wise you have to go category by category. I can tell you right now because the first six months there is no there is no price increased in the first six months from an from a sales point of view.

Speaker #1: So all the volume that we have is volume driven volume driven growth.

Speaker #4: Okay, great, that is very clear. Can I ask another question on the CapEx, and do you have an updated number, or do you believe the €20 million you have given us for 2026 will still hold?

Natalia Svyrydova: Okay, great. That is very clear. Can I have another question on the CapEx? Do you have an updated number or the EUR 20 million you have given us for 2026, you believe this will hold?

Speaker #4: Because you've already done I think 18 million.

Ioannis Bouras: Yes.

Natalia Svyrydova: Because you have already done, I think EUR 18 million.

Speaker #1: Yeah yes just presented it's 22 million so we expect instead of 20 that we talked about in March we expect 22 now. But 18 million of this is already done.

Ioannis Bouras: Yeah. As presented, it is EUR 22 million, so we expect instead of EUR 20 that we talked about in March, we expect EUR 22 now.

Natalia Svyrydova: Okay, great.

Ioannis Bouras: But 18 million of this is already done.

Natalia Svyrydova: Okay, great.

Ioannis Bouras: But 18 million of this is already done.

Speaker #1: So it is the remaining part to be done.

Natalia Svyrydova: Yeah. Okay.

Ioannis Bouras: So it is the main part to be done.

Speaker #4: Okay thank you thank you very much for taking my questions.

Natalia Svyrydova: Okay. Thank you very much for taking my questions.

Speaker #2: As a reminder if you would like to ask a question please press star and one on your telephone. Those participating via the webcast you may submit your written questions using the ask a question window.

Operator 2: As a reminder, if you would like to ask a question, please press star and one on your telephone. Those participating by the webcast, you may submit your written questions using the "ask a question" window. Ladies and gentlemen, there are no further questions at this time. I will now turn the conference over to management for any closing comments. Thank you.

Operator: As a reminder, if you would like to ask a question, please press star and one on your telephone. Those participating by the webcast, you may submit your written questions using the "ask a question" window. Ladies and gentlemen, there are no further questions at this time. I will now turn the conference over to management for any closing comments. Thank you.

Speaker #2: Ladies and gentlemen there are no further questions at this time. I will now turn the conference over to management for any closing comments. Thank you.

Speaker #1: Nothing special. Thank you very much for joining the call. If any questions or anything comes to your mind you can contact our IR and of course we will come back to you.

Ioannis Bouras: Nothing special. Thank you very much for joining the call. If any questions or anything comes to your mind, you can contact our IR, and of course, we will come back to you. Thanks for joining today, and talk to you soon.

Speaker #1: Thanks for joining today and talk to you soon.

Speaker #3: Thank you.

Christos Varsos: Thank you.

Speaker #1: Thank you.

Ioannis Bouras: Thank you.

Operator 2: Ladies and gentlemen, the conference is now concluded, and you may disconnect your telephone. Thank you for calling, and have a good afternoon.

Operator: Ladies and gentlemen, the conference is now concluded, and you may disconnect your telephone. Thank you for calling, and have a good afternoon.