Thessaloniki, May 22, 2015
Subject: Press release for the financial results of ELGEKA Group for the first quarter of 2015
ELGEKA Group, being active to a significant extent in the domestic market, which was affected by intense uncertainty and therefore economic instability, achieved to retain the level of operating profitability and significantly improve its profit margins.
Specifically, consolidated turnover for the first quarter of 2015 amounted to 57,0 million euro against to 69,5 million euro in the comparable period of 2014, showing a decrease of 17,9%.
This change is due to the discontinuation of loss-making activities that took place after the first quarter of 2014, the restructuring of the product portfolio of the Group aimed at focusing on products with higher profit margins, and the drop in onsumption due to the prolonged period of uncertainty experiencing the country.
As a consequence of the above, the gross margin amounted to 16,5% against 13,2% in the first quarter of 2014, while the EBITDA margin to 6,2% from 5,1%, resulting in earnings before interest, tax, depreciation and amortization (EBITDA) to stand at 3,5 million euro over 3,6 million euro in the comparable period. Earnings before tax amounted to 0,2 million euro over 0,1 million euro, while earnings after tax and non-controlling interest amounted to 0,4 million over 0,1 million euro in the comparable period.
Despite the adverse conditions, ELGEKA Group continues to work systematically in order to optimize its operational efficiency, aiming at:
- The further restructuring of product portfolio in the segment of Trade with a focus on private label products and in more profitable distribution channels (e.g. places of spontaneous purchases).
- Increasing the market share that it holds in the Logistics services segment confirming its existing leadership and
- The continued geographic expansion of the segment of Food industry’s products by increasing sales in a highly profitable sector of the Group.
In any case, the anticipated normalization of domestic macroeconomic conditions is expected to have an immediate beneficial impact on domestic consumption and a significant positive effect on the financial figures of both the parent and ELGEKA Group in general.
The Summary Financial Data and Information for the period 01.01.2015 – 1.03.2015, as well as the Interim Financial Statements of the same period, are available today Friday, May 22, 2015, in the Company’s website (www.elgeka.gr), as well as in Hellenic Exchanges Group’s website (www.helex.gr).