PRESS RELEASE FOR THE FINANCIAL RESULTS OF ELGEKA WITHIN NINE MONTHS PERIOD 2010
The financial results of ELGEKA Group within nine months period of 2010 are the result of a series of business moves made during the year. The Group managed to consolidate its leadership in the Greek market and also to lay the foundation for the further enhancement and development through important agreements concluded this year.
In particular, 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, is a milestone in the development of the Group, as it creates the necessary conditions for strengthening its business and economic figures. Τhis collaboration has brought, up to September 30th, 2010, to the Group an amount of 3.5 million euro in sales and of 0.6 million euro in earnings before interest, taxes, depreciation and amortization (EBITDA). Furthermore, cooperation is further strengthened by signing a relevant memorandum of understanding with the COSCO Group for the construction and operation of a Container Freight Station at the New Container Terminal at Pier II of the Port of Piraeus.
In addition, the ELGEKA Group has acquired the wholesale company “VITA PI S.A.”, an investment totaling 16.7 million euro, which is expected to significantly strengthen the Group’s position in the Greek market. The product portfolio of “VITA PI S.A.”, its innovative promotional techniques that it uses and the synergies to be created, are estimated to be important factors in the future for further growth and profitability of ELGEKA Group.
In the context of the above developments and given the activation of Group in an environment of recession and consequently reduced consumer demand, the Group achieved during the first nine months of 2010 to increase both its sales and profitability while significantly improved its operational cash inflows.
Specifically, the consolidated turnover in the first nine months of 2010 amounted to 236.9 million euro against 222.7 million euro in the corresponding period of 2009, presenting an increase of 6.4%. Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) showed a percentage decrease of 12.5% (from 10.3 million euro to 9.0 million euro), while profit before tax stood at 1.4 million euro during nine months period of 2010 from 0.2 million euro loss the corresponding period of the previous year. Similarly, profit after tax and non-controlling interest amounted from 0.1 million euro to 0.3 million euro, more than doubled compared with the corresponding period of 2009.