PRESS RELEASE FOR THE FINANCIAL RESULTS OF ELGEKA FOR THE YEAR 2010
The financial results of ELGEKA Group for the year 01/01/2010 to 31/12/2010 is the consequence of: a) the strategy to minimize the negative effects of recession, affecting the Greek economy and b) the targeted growth in sectors that are expected to provide significant gains for the Group in the coming years.
As part of the above mentioned development strategy, two major business developments were achieved by the Group during 2010, namely: a) the strategic agreement, which was reached with COSCO Group and concerns the project of loading-unloading and handling of containers arriving at Piraeus Port, and particularly at Pier II (contribution to Group’s financial results 5.5 million euro in sales and 1,0 million euro in EBITDA), as well as the signing of a relevant memorandum of understanding with the same Group for the construction and operation of a Container Freight Station in the Port of Piraeus and b) the acquisition of the wholesale company “VITA PI S.A.”, an investment totaling 16.7 million euro, which is one of the major movements of strengthening the position of ELGEKA Group into the Greek market (contribution to Group’s financial results 56.8 million euro in sales and 1,4 million euro in EBITDA).
Regarding the financial results of the Group for the year 2010, consolidated turnover amounted to 352.7 million euro compared to 317.6 million euro in 2009, presenting an increase of 11.1%. Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) showed a percentage decrease 7.1% (from 13.8 million euro to 12.8 million euro), while pre-tax losses amounted to 0.4 million euro compared to 7.2 million euro in the comparable year. The loss after tax and non-controlling interest amounted to 1.2 million euro in 2010 from 2.9 million euro in 2009.
The Group’s Management believes that these business developments, as well as the full exploitation of potential synergies, are expected to affect more positive the financial results of the Group in 2011, shielding the Group to a greater extent in the depressing economic environment.