On the occasion of the announcement of the financial results, the Companys management provides the following detailed information:
Consolidated sales for the nine month period in 2008 amounted to 51.69 mil Euro, increased by 2.41% in reference to the corresponding period in 2007, which had reached the amount of 50.48 mil. Euro.
Sales of the Companys home market subsidiaries were negatively affected by the long lasting strike in the Greek ports.
In particular, parent company sales increased by 1.32% as a result of a) the significantly positive evolution of the line sales that reached an increase of 7.06% and b) the deterioration of the special B2B sales (promotional activities items).
Satisfactory growth of 27.26% showed the OMNISHOP S.A. sales, while the air-conditioners sales of EXCEL S.A. posted a decrease of 27.56% compared to the last years outstanding sales due to the extreme temperatures in the summer 07.
On the opposite side, Companys subsidiaries YALCO ROMANIA and YALCO HUNGARY, posted a significant sales increase by 98.15% and 93.23% respectively.
The gross margin of the Group has shown an improvement, with the exception of OMNISHOP S.A., which continues to hold the best gross margin among the companies of the Group.
II. Operating Expenses
Operating Expenses presented a higher than expected increase, due to the multiple costs that Greek ports strike created, as well as the management decision to enhance further the management team covering the needs created by the Groups growth strategy.
The seasonal maintenance of high stocks and the execution of the investment projects resulted to the increase of bank loans, which, in combination with the increase in interest rates, led to the increase of the financial cost.
All of the above mentioned elements resulted to a Group pre tax and after tax profit of 2.32 mil. Euro and 1.63 mil. Euro respectively, compared to 3.96 mil. Euro and 3.19 mil. Euro in the same period of 2007.
IV. Material Developments
The following important facts and events took place during the nine month period of 2008:
a) OMNISHOP S.A. undertook the right and responsibility of the exclusive development of the HABITAT brand in Greece.
b) YALCO ROMANIA SRL has taken over the right and responsibility of the exclusive distribution of the DeWALT professional tools in the fast growing Romanian market. Furthermore, its activity has been expanded in the houseware sector as well as in the professional equipment in the HORECA environment.
c) The expansion of the product portfolio by the parent company including well known international brands like SAECO (espresso machines) etc.
d) The construction of the new logistics center located in Inofita of Viotia, of a total budget of 7.9 mil. Euro, which is expected to be completed very soon.
Additionally, the major accomplishment of the last quarter is the opening of the first stand alone HABITAT Shop in downtown Glyfada as well as the second HABITAT shop in shop in cooperation with NOTOS at the new Shopping Center "Golden Hall", in Maroussi.
The above mentioned summary developments, as well as a series of other decisions, will offer to an outgoing business growth and therefore to the evolution of the YALCO Group fundamentals will continuously contribute to the increase of operations and financial figures of the Group.