Press release for the financial results of ELGEKA Group for the year 2017

                                        Industrial Area of Sindos – Thessaloniki, April 27th, 2018

 

Press release for the financial results of ELGEKA Group for the year 2017

 

2017 was a year, in which ELGEKA Group demonstrated significant achievements at every level of its business operation, enhancing its financial figures while maintaining even and expanding its market share, despite the continuing adverse economic conditions in which it activates.

 

In particular, during the year, ELGEKA Group started new cooperations with suppliers who hold strong and branded products in the main markets that it operates (Greece, Romania), while enhancing its existing partnerships with new products and increasing its customer portfolio. At the same time, it expanded its portfolio of private label products, while it proceeded to its reactivation in the former network of Marinopoulos Group under the management of Sklavenitis Group.

 

As a consequence of the above, it was achieved both the Group’s sales growth and also a higher gross margin profit due to the continued improvement of its product mix (increased participation of products with higher profit margins).

 

At the same time, the process of optimizing the efficiency of operations has become an integral part of the day-to-day work of the Group’s employees, with the result the operating costs presenting a continuing decrease, despite the expansion of its activities, while the consistent credit policy followed allows the Group to minimize its losses from trade defaults.

 

In addition, through the sale of its participation in the company “ARIVIA S.A.” during the first months of 2017, ELGEKA Group managed to obtain significant benefits at many levels, namely the strengthening of its capital adequacy and the ensuring of significant cash inflow, which is a) an integral part of the Group’s agreement with the lending banks regarding the restructuring of its borrowing and b) necessary working capital that supports the smooth implementation of its business plan.

 

More analytically, consolidated turnover for 2017 amounted to 165,5 million euro compared to 157,8 million euro of 2016, presenting an increase of 4,9%. In addition, the improvement of the gross profit margin to 17,3% against 15,8% of 2016 resulted in an increase in gross profit to 28,6 million euro compared to 24,9 million euro, an increase of 3,7 million euro. The consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) of total operations amounted to 8,1 million euro compared to 5,2 million euro, while even more

 

impressive was the change in consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) of continuing operations which amounted to 6,9 million euro against 1,1 million euro of the comparable year, as a consequence of all the above actions. Pre-tax loss from continuing operations significantly decreased and in particular they amounted to 2,0 million euro compared to 9,1 million euro in 2016, while Profit after tax and non-controlling interest amounted to 1,6 million euro against loss of 8,7 million euro in the comparable year, affected also by the profit accrued from the sale of participation in the company “ARIVIA S.A.”.

 

Following this, it is undisputed fact that ELGEKA Group is on a continuous growth path, increasing its financial figures and significantly improving its profit margins. Over the last few years, it has managed to absorb many and significant shocks that suffered the consumer products industry as a whole, such as the significant deceleration in consumption, the changing consumer patterns, the bankruptcy by large retail businesses, the insecurity of international suppliers in relation to the prospects of the Greek market and its members, as well as the prolonged restrictive financial policy.

 

ELGEKA Group is coming out of this period significantly strengthened, having adapted to the new circumstances and possessing the necessary know-how in order to cope with challenges and opportunities. During 2018, the Group will continue to implement its successful business strategy, intensifying its efforts regarding the upgrading of its product portfolio, the more efficient use of existing and new distribution channels, and the efforts to further reduce its operating costs. The completion of these adjustments is expected to place ELGEKA Group in an advantageous position in relation to domestic and/or international competition, giving it a first-class opportunity to play a leading role in any business opportunities will occur within its business activities.

 

The Summary Financial Data and Information for the year 01.01.2017 – 31.12.2017, as well as the Annual Financial Statements of the same year, are available today Friday, April 27, 2018, in the Company’s website (www.elgeka.gr), as well as in Hellenic Exchanges website (www.helex.gr).

 

Ministry of Economy & Development– General Secretariat for Commerce & Consumer Protection

Directorate of Societe Anonyme Companies & G.E.MI. – G.E.MI. Νο: 57298604000