Greek food industry: 5 + 2 investments

The war in Ukraine and the subsequent disruptions in the supply chains have sparked uncertainty and it seems that no one will be left unscathed during these difficult times. However, several food industries seem determined not to abandon their investment potential. At least for now. The main goal of the managements is to shield the viability of the companies, having learned in the last years of the financial and health crisis to manage quickly and efficiently the new external risks that appear.

Besides, the food industry is still the first manufacturing sector in Greece, with a turnover of 15 billion euros, while its export activity exceeds 5 billion euros.

E.I. Papadopoulos

Without exceptions, E.I. continues its investment plan. Papadopoulos, which this year completes a century of operation. The well-known biscuit and food industry, under Ms. Ioanna Papadopoulou, is going to strengthen its presence in the category of bread and pastries through the new bakery factory in Inofyta, as an extension of the existing unit. The operation of the new production unit, according to information, is expected to start in the middle of autumn.

This is an investment of 35 million euros, which will double the production potential of the company, aiming to claim larger shares in the bread category. The consolidated sales of E.I. Papadopoulos in 2020 increased by 2.8% to 179.128 million euros, and net profit after taxes increased by 6.4% to 11.571 million euros. During the same period, its exports increased by 7.5% compared to 2019. The industry with 1,538 employees (December 2021) and presence in more than 61 countries operates 4 factories in Tavros, Thessaloniki, Volos and Inofyta and a central warehouse for ready products in Aspropyrgos.

Alpha Pastry

With a significant increase in profits in 2021, Alfa Pastry (Athanasios D. Koukoutaris SA), a leading company in frozen dough products, based in Kozani, continues to grow dynamically. Last year, the company, which aspires to conquer the American market, proceeded with investments of 2 million euros, directed mainly at innovative mechanical equipment. For this year, the implementation of the new investment plan of the company has started, with a total value of 5.5 million euros, which concerns an additional expansion of the production lines of the Alfa factory in Kozani.

In 2021, Alfa’s turnover amounted to 44.082 million euros compared to 36.538 million euros in 2020, while net profit before taxes amounted to 5.008 million euros compared to 3.006 million euros in 2020.

“Pindos” Agricultural Poultry Cooperative of Ioannina

With increased production costs of over 50% due to the jump in prices for animal feed and energy, the Agricultural Poultry Cooperative of Ioannina “Pindos” continues its investments with a view to the crisis of the supply chain. The Cooperative’s investment plan for the period 2020-2024 amounts to a total of 27 million euros and includes a modern poultry slaughterhouse, which is being built on the site of the existing poultry slaughterhouse and is expected to be operational by the end of the year. It is recalled that last October the new ready-made factory of “Pindos” started operating, an investment of 9.5 million euros. In addition, energy has an important place in the investment planning of the Cooperative. Last year, two Energy Communities were established in Ioannina and Corfu, which will operate photovoltaic parks with a capacity of 18 MW each. The construction cost budget amounts to 30 million euros. The plans also include the establishment and operation of a biogas plant.

ΚΡΙ ΚΡΙ

Every year, through its positive operating cash registers, the Serrais dairy industry KRI KRI manages to finance significant investments with its own funds.
For this year, the company is launching investments of 4-5 million euros, mainly in mechanical equipment, from 10 million last year, as, according to the management, the capacity of its production facilities is considered satisfactory at least for the next two years. In addition, it invests in its environmental footprint and in the effort to reduce energy costs.

The state-of-the-art anaerobic treatment unit has already been put into operation at the premises of KRI KRI in Serres. This is an investment of 6 million euros with equity, implemented by the Greek dairy industry in the context of its transition to the cyclical model of sustainable development and prosperity. At the same time, it plans for the next period the installation of a complete photovoltaic system.

The turnover of the listed dairy industry in the first quarter of 2022 increased by 7.6% to 30.73 million euros compared to 28.56 million euros in the first quarter of 2021. However, pre-tax profits for the same period amounted to just 0.55 million euros from 3.55 million euros in the first quarter of 2021.

Intercomm Foods

Despite its exposure to the Russian market and the burden of its operating costs due to significant increases in packaging materials and raw materials, Larissa-based Intercomm Foods continues its investment planning.

The investment program of Intercomm Foods amounting to 3 million euros, which concerns the expansion of the capacity of an existing unit in Omorfochori, Larissa, was included in the provisions of the development law. The company, which is the largest export and processing company of edible olives and is one of the largest processed fruit industries (apricot, peach preserves), is expected to receive aid in the form of a tax exemption totaling 1.05 million euros.

The acquisition of the facilities of the former EAS Larissa was recently completed. The old cooperative factory will be converted into a modern edible olive production unit, an investment of 6-7 million euros.

In 2020, the annual turnover amounted to 95 million euros, with profits of 6.5 million euros. The turnover for 2021 also closed at around 2020 levels.

Damavand

Damavand, which is active in the processing of agricultural products, mainly tomatoes and fruit juices, is investing in expanding its capacity at the tomato paste production unit in Sofades, Karditsa.

The new investment has a budget of 2.5 million euros and has been included in the development law, with the subsidy amounting to about 600,000 euros. Having passed from 2018 to the control of the Diorama fund of Dimitris Daskalopoulos, managed by Deca Investments, during the period from 1 July 2020 to 30 June 2021 implemented an investment program of 4,985,000 euros, which was financed with a 50% grant through the Measure 4.2.1, by 12.5% ​​from equity and by 37.5% from medium-term bank lending.

During the fiscal year 2020-2021, the company’s turnover increased to 25.29 million euros, compared to 19.39 million euros in the fiscal year 2019-20, while profits after taxes reached 973,000 euros, compared to 273,000 euros.

Violeanda

The Trikala biscuit industry Violanda is investing in the creation of a new production unit in the Larissa Industrial Area. The investment of 1.96 million euros was included in the development law and the company will receive aid of 884,250 euros in the form of tax exemption. The main factory of the company is located in Trikala, where there is a distribution center, while it also has distribution centers in Athens and Thessaloniki.