Decreasing sales volume and indeed a double-digit and significant decline in profits are causing FAGE to reprice raw materials and, as a result, increase consumer prices. The results of the first half of 2022 for the well-known dairy industry are in fact a “photo” for almost the entire food industry, and even globally, given that 87% of FAGE’s turnover is outside the Greek market.

According to the results announced by the dairy industry, its sales for the first half of 2022 were $279.9 million, up only 1.5% compared to the first half of 2021. According to the same company in its financial report, this increase was due to a 15.7% increase in the average net selling price of its products in all markets in which it operates, which, however, was “diluted” by a 10.1% decrease in sales volume. in the same interval. In fact, the decline in sales in Greece, Italy and the United Kingdom was such that higher prices could not compensate for losses from reduced consumption, causing FAGE to record a decrease in turnover in these countries. In particular, in Greece, its sales in value terms fell in the first half of 2022 by 9.7%, in Italy – by 14.4%, and in the UK – by 14.1%. In the US, the cost of sales increased by 13.4%. In addition, the strengthening of the dollar against the euro and the pound sterling negatively affected FAGE’s turnover by 4.1%. Sales between January and June 2022 fell 20% in the UK, 17.8% in Italy, 16.3% in Greece and 4.2% in the US.

FAGE gross profit fell 22.9% to $83.2 million from $108 million in H1 2021. Gross margin was 29.7% of sales in 1H 2022 compared to 39.2% in the first half of 2021, which, according to FAGE, is mainly due to the fact that the price of milk used in its facilities in Greece and USA, increased by 59.4% and 46.9% respectively. Operating income decreased 34.9% to $23.3 million from $35.8 million in the first half of 2021. %.