Thessaloniki, September 28th, 2018
Subject: Press release for the financial results of ELGEKA Group for the first semester of 2018
During the first six months of 2018, ELGEKA Group maintained the reconstruction process of recent years, which has enabled it to continuously improve its financial figures, to gain higher market shares in the main segments where it operates and to generally strengthen its position against its competitors. Of particular importance is the fact that all these are achieved in an environment characterized by both limited consumer demand and a particularly high level of competition between companies, which suggests strong sales pressure as well as declining profit margins.
The above reconstruction process is summarized as follows:
- Increase in sales by 9,5%, due to new partnerships and more intensive promotion activities in the market of trade consumer products, to introduction of new product codes, as well as to increased market share in the segment of private label products.
- Maintaining operational profitability (EBITDA margin) at constant levels (4,5% against 4,7% in the comparable period of 2017) as a consequence of the emphasis given on operating costs at each level of Group’s operating activity.
- Keeping provisions for customer bad debts at particularly low levels due to the rigorous credit policy applied in recent years.
- Further disengagement from activities that do not contribute the expected results to the Group’s financial figures.
In particular, consolidated turnover from continuing operations for the first half of 2018 amounted to 84,4 million euro compared to 77,0 million euro of the comparable period of 2017, while Earnings before interest, tax, depreciation and amortization (EBITDA) from continuing operations amounted to 3,8 million euro against 3,6 million euro of the comparable period and the Earnings before interest, tax, depreciation and amortization (EBITDA) from the total operations of the Group reached the amount of 3,8 million euro against 4,8 million euro (where in the comparable period of 2017 were included the Results of the subsidiary company “ARIVIA S.A.”). The Loss before tax from continuing operations further decreased to 1,2 million euro against 1,4 million euro in the first half of 2017, while Results after tax and non-controlling interest amounted to loss of 0,5 million euro over profit of 3,2 million euro in the comparable period, due to the profit from the sale of the subsidiary company “ARIVIA S.A.” that was included in the comparable period.
In the second half of 2018, the Group will continue the implementation of its business strategy, namely the strengthening of its product portfolio with new products that respond better to the changing needs of consumers and at the same time contribute to a greater extent to the Group’s profitability, the achievement of new collaborations and the expansion of its clientele, the further optimization of its operations in order to maintain and / or improve its operational profitability, as well as the more active exploitation of its assets. With its strategic actions, ELGEKA Group ensures that the improvement in its operating figures will continue, with a proactive response to any obstacles may face in the short term and medium to long term.
The Interim Financial Statements of the Group and the Parent Company ELGEKA for the period 01.01.2018 – 30.06.2018 were uploaded today Friday, September 28, 2018, and are available in the Company’s website (www.elgeka.gr), as well as in Hellenic Exchanges website (www.helex.gr).