PRESS RELEASE FOR THE FINANCIAL RESULTS OF ELGEKA WITHIN FIRST QUARTER PERIOD 2013
Thessaloniki, May 31st, 2013
The most important events affected ELGEKA Group’s results during the first quarter of 2013 was the time lag of the Easter holiday season compared to the same period of last year, and the increase in the tax rate from 20% to 26% under the new tax legislation. While the first fact resulted in lost sales and thus profitability of the Group in relation to the comparative period, the second fact created a significant non-recurring tax charge in the Results after tax due to calculation of deferred tax liability with the new tax rate.
In particular, consolidated turnover amounted to 73,2 million euro compared to 85,0 million euro in the comparable period of 2012, presenting a decrease of 13,9%. Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to 1,4 million euro compared to 2,2 million euro in the corresponding period of 2012, definitely affected from the reduced sales, while pre-tax loss amounted to 2,0 million euro compared to 1,8 million euro in the comparable period. The loss after tax and non-controlling interest amounted to 3,7 million in the first quarter of 2013 comparing to loss of 1,7 million euro in the comparable quarter of 2012, significantly affected by the aforementioned charge of deferred tax.
Among the positive points of the period included the fact that the Group has achieved for another quarter positive operating cash flows of 1,1 million euro, through which further reduced its borrowings. The continuous reduction of bank lending in recent years has led to the reduction of the interest expenses of the Group by 8,3% compared to the comparable period of 2012.
Finally, the systemic actions of disengagement from loss-making activities, which are expected to bring positive results during 2013, and the exploitation of new ventures in new geographic markets (e.g. in Germany with the establishment of the company «ELGEKA AG») coupled with the apparent stabilization, albeit at low levels of household consumption expenditure in the domestic market, create the necessary conditions to improve the Group’s financial results in the near future.
The Summary Financial Data and Information for the period 01.01.2013 – 31.03.2013, as well as the Interim Financial Statements of the same period, are available today Friday, May 31, 2013, in the company’s website (www.elgeka.gr), as well as in Athens Exchange website (www.ase.gr).