CONSOLIDATED FINANCIAL RESULTS NINE MONTH OF 2013

SUBSTANTIAL INCREASE OF EARNINGS PER SHARE ΒΥ 76%, SIGNIFICANT GROSS PROFIT MARGIN IMPROVEMENT ΒΥ 2 PERCENTAGE POINTS, FURTHER REDUCTION OF DEBT, INCREASE OF NET CASH POSITION

The upward trend observed in Sarantis Group profitability during the first half of 2013 is maintained yet again for another quarter.

Group profitability sustains its remarkable growth, while bottom line profitability margins already exceed the Group’s guidance.

Specifically:

Earnings Before Interest and Tax (EBIT) rose by 33.72% and EBIT margin settled at 7.37% from 5.47% in 9M 2012.

Earnings Before Tax (EBT) increased significantly by 61.85% to €13.63 million from €8.42 mil. with the EBT margin reaching 7.93% from 4.86% in the respective period of last year.

Earnings After Tax and After Minorities (EATAM) presented a significant growth of 59.41% to €10.81 mil. from €6.78 mil. same period last year, while EATAM margin reached 6.29% from 3.91% in 9M 2012.

Earnings Per Share (EPS) increased by 76% to €0.31 from €0.18.

The main factors that contribute to such a performance are the following:

• A considerable improvement in the Group’s Gross Profit margin that rose to 49.48% from 47.51% during the same period of last year largely due to better sourcing.
• Cost control and operational leverage.
• A robust financial position which enables the Group to self-finance its activities and investments, supporting at the same time the total turnover.

In particular, regarding the Group’s turnover that is maintained at last year’s level at €171.83 mil., two important observations need to be made:

1. The foreign markets, being the largest contributor in terms of total sales amounting to 62% of the group’s turnover, continue to support the Group’s growth compensating for the sales drop of 3.8% from the Greek operations.
2. Greek sales have dropped at a much lesser extent than the total drop of the Greek retail market (based on data provided by the Hellenic Statistical Authority).

Despite the challenging economic and business environment, Sarantis Group further strengthens its financial position deleveraging its balance sheet and continuing to generate free cashflows.

Total bank debt was reduced by approximately €15 mil. euros as of 30/09/13 since the end of 2012, while net cash position increased further by the end of the nine months of 2013 to €9.90 mil.

Furthermore, in terms of the working capital requirements management, it should be noted that, as expected, the increase observed in the Group’s working capital during the first half of 2013 started to gradually drop in the third quarter of 2013 due to the clearing of the seasonal sales. As the clearing of the seasonal sales is expected to be by 90% completed by the end of 2013, the company is expected to further reduce its employed working capital. At the same time, during 9M 2013 a temporary increase in the inventory is observed mainly due to the relaunch of STR8 in all the countries of the Group, as well as new launches of the product line KOLASTYNA in Poland. Therefore, working capital over sales stands at 31% during 9M 2013 compared to 28% in FY 2012 and 33% in H1 2012.

Sarantis Group healthy financial position allows for investing behind the strategic pillars that support the Group’s growth and profitable outlook.

The focus is behind the Group’s core business categories of mass market cosmetics and household products through the continuous renewal and enrichment of the Group’s brand portfolio, increasing its market shares, improving productivity and product efficiency by exploiting synergies in the production, examining acquisitions of profitable and well established companies or brands suitable to the Group’s portfolio, and finally capitalizing on the human resources capabilities.