PRESS RELEASE FOR THE FINANCIAL RESULTS OF ELGEKA WITHIN ΝΙΝΕ MONTHS PERIOD 2013
Thessaloniki, November 29th, 2013
During the third quarter of 2013, the stabilizing trends of the financial results of ELGEKA Group continued. Sales of the Group during that period, compared with the corresponding quarter of 2012, fell by 3,4% (first quarter 2013: -13,9%, second quarter 2013: -2,0% ), the result from operating activities amounted to loss of 204 thousand euro compared to loss of 35 thousand euro in 2012, while earnings before taxes amounted to loss of 2.002 thousand euro compared to loss of 1.963 thousand euro the comparable period.
ELGEKA Group during 2013 achieved to offset the decline in sales, which comes mainly from reduced demand for consumer products (Sales 9 month period 2013: -10,5% ), with the production and sale of new, innovative and highly competitive foods (+9,1%) through its subsidiary company “VIOTROS S.A.” and to significantly expand its market share in the field of «Logistics» (+12,8%). In addition, the Group continuously takes the necessary steps in order to reduce operating costs (-2,4%), adaptive to new market conditions, successfully manages its financial costs (-9,1%) and achieves positive operating cash flows (1,8 million euro).
Furthermore, after the successful transfer of its participation in the company “MEDIHELM PHARMAC. WHOLESALE STORE S.A.” on 20/11/2013, as well as the inactivation of the subsidiary company “SAMBROOK PHARMACEUTICALS S.A.”, ELGEKA Group has substantially fully disengaged from the segment of pharmaceutical industry, whose contribution to Group results was negative in recent years.
The above were achieved in an environment where the purchasing power of households is very low, a large part of businesses and merchants are unable to meet their obligations thereby creating increased provisions for doubtful debtors (+579 thousand euro for ELGEKA Group during 9M 2013) and the tax charge continuously increased (the increase in the tax rate from 20% to 26% from 01/01/2013 resulted in a charge of Results by 1.038 thousand euro).
In particular, consolidated turnover for the 9month period of 2013 amounted to 227,5 million euro compared to 240,1 million euro in the comparable period of 2012, presenting a decrease of 5,3%. Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) from continuing operations amounted to 3,8 million euro compared to 5,5 million euro in the corresponding period of 2012. Pre-tax loss from continuing operations amounted to 6,2 million euro compared to 5,4 million euro in the comparable period. The loss after tax and non-controlling interest amounted to 9,4 million in the 9 month period of 2013 comparing to loss of 6,1 million euro in the comparable period of 2012, significantly affected by the aforementioned charge of deferred tax, as well as by the loss from discontinued operations. The Summary Financial Data and Information for the period 01.01.2013 – 30.09.2013, as well as the Interim Financial Statements of the same period, are available today Friday, November 29, 2013, in the company’s website (www.elgeka.gr), as well as in Athens Exchange website (www.ase.gr).