On the occasion of the announcement of the first quarter 2008 financial results, the Companys management announces the following:
Consolidated sales compared to the first quarter 2007 showed an increase of 16.31% while sales of the Company increased by 1.35%, despite the negative market conditions due to port strikes that among others burdened significantly storage and transportation costs.
The same positive trend was also noted in the gross profit of the Group and the Company, showing a positive change by 19.16% and 6.6% respectively compared to the first quarter of 2007.
However, operating and financial expenses did not show the same positive trend because they increased by a rate greater than that of the above mentioned figures, resulting to negative earnings after tax for the Group in the first quarter 2008 amounting to 222 thousand Euros, while the Companys earnings after tax amounted to 128 thousand Euros. This trend is expected to be reversed during the current year, since the operating expenses and depreciation cost of financial products which amount to 371 thousand Euros and burdened the first quarter 2008, will be allocated in the forthcoming period, according to the current conditions, cancelling the Groups accounting losses of the first quarter 2008.
As far as the general developments of the Group are concerned and in accordance with previous announcements, YALCO ROMANIA is significantly expanding its presence in the Romanian market, while YALCO HUNGARY following the assumption of the new General Manager, is showing significant sales improvement.
Finally, the construction of the modern Logistics and Distribution Centre in Inofyta of Voiotia shows satisfactory progress. Its completion and operation is expected in the 4th Quarter of the current year. This development will considerably improve customer service and will further contribute in scale savings while distribution, transportation and general operating expenses will be considerably reduced.