Summary Financial Statements for the period January 1st until June 30th, 2008 were publicly announced on August 27th, 2008. On the occasion of the announcement of the financial results, the Companys management provides the following detailed information:
Consolidated sales for the First Half 2008 amounted to 35.44 mil Euro, increased by 5.9% in reference to the corresponding period in 2007, which had reached the amount of 33.47 mil. Euro.
Sales of the Companys national market subsidiaries were negatively affected by the Greek ports strike.
In particular, parent company sales increased by 3.76% affected by the delay of promotional activities to special customers, which in turn are expected to further increase during the second half of the year.
Satisfactory increase of 32.33% showed OMNISHOP sales, while air-conditioners sales of EXCEL posted a decrease of 19.34% compared to last years increased sales due to the significantly high temperatures.
On the contrary, Companys subsidiaries YALCO ROMANIA and YALCO HUNGARY, active in the foreign market, posted a significant sales increase by 153% and 85.62% respectively.
All the Groups companies presented gross profitability improvement.
II. Operating Expenses
Operating Expenses presented a higher than expected increase, due to the multiple costs that Greek ports strike created, as well as due to the managerial decision on a more comprehensive and efficient staff recruitment of services which will directly cover needs created by the Groups development policy.
The seasonal maintenance of high stocks and the execution of investment programs resulted to the increase of bank loans, which, in combination with the increase in interest rates, led to the increase of the financing cost.
All of the above mentioned elements contributed to the shaping of pre tax and after tax results of the Group companies, which ranged in the order of 1.38 mil. Euro and 0.951 mil. Euro respectively, compared to 2.55 mil. Euro and 2.077 mil. Euro in the First Half of 2007. Comparing to the second half of the current year, we believe that, with the same increase rate of sales, the impact of the operating expenses will be lower of that in the first half and consequently the Group results will improve.
This estimate is confirmed by the development of 2nd Quarter results of the current year, compared to the 1st Quarter. During Q2 2008, the Group posted after tax profit of 1.17 mil. Euro compared to negative after tax results of 0.221 mil. Euro in Q1 2008.
IV. Significant Developments
The significant developments which took place during the 1st Half 2008 were the following:
a) The undertaking by the OMNISHOP subsidiary of the exclusive development of the HABITAT chain in Greece.
b) The assumption by the YALCO ROMANIA SRL subsidiary of the exclusive distribution of the DeWALT professional tools in the rapidly developing Romanian market and the extension of activity in the houseware and professional equipment market.
c) The expansion of the product range of the parent company with internationally acclaimed products, such as SAECO, etc.
d) The conclusion of the major part of the construction works of the new logistics center located in Inofita of Viotia, of a total budget of 7 mil. Euro, which is excepted to be completed by November 2008.
The above mentioned summary developments, as well as a series of other decisions, will continuously contribute to the increase of operations and financial figures of the Group companies.
August 28th, 2008