The consolidated results of the Group S. D. CONSTANTINOU & SON S.A. "YALCO" showed a significant improvement during the fiscal year 2007.
In particular, pre-tax profits reached 3.607 mil. Euro while after-tax profits amounted to 2.913 mil. Euros showing a change of 56.0% and 132.0% respectively against the previous fiscal year 2006.
The consolidated results also showed a significant improvement at EBITDA level, amounting to 7.1 mil. Euro against 4.9 mil. Euro in 2006. The above improvement is attributed, apart from the parent company, to the EXCEL and OMNISHOP subsidiaries that achieved a major increase in sales and considerable recovery in profitability.
It should be noted that the consolidated results were charged with extraordinary provisions of 400,000 Euro, further to ordinary provisions, regarding coverage of Euro /USD exchange rate risk according to the parity on 31/12/2007. In 2007, apart from the major improvement of the results, new conditions were also created that will positively affect the companies financial figures in the medium and long term.
Relevant events that created such conditions are:
a. The acquisition of HABITAT by OMNISHOP in the Greek market
b. The initiation of operations of the subsidiary S.C.YALCO ROMANIA SRL in Romania that registered profits of 150,000 Euro during the first nine months of operation. Apart from the exclusive marketing of "BLACK & DECKER" electrical consumer tools, the company took over as of 01/01/2008 the distribution of DeWALT professional tools and also started expanding its activities to those of the parent company with the distribution of houseware and professional equipment in the developing market of Romania.
The parent company will also greatly intervene in the operations of the subsidiary, YALCO HUNGARY Kft, that in 2007 burdened the Groups profitability so that in 2008 it becomes a profitable business.
The above mentioned positive developments have been recently supplement with further strengthening of the executive staff so as to cover all needs created by the expansion policy.
Lastly, in the final quarter of 2008, the construction of the new logistics center (amounting to 7 mil. Euro) will be completed located in Inofita Viotias at company owned premises. The operation of this center will create economies of scale savings and will improve customer service. In fact, it will significantly contribute to strengthening the companys leading position in the field of its activities.