The uncertainty over the course of the Greek economy, the restrictive measures imposed to reduce the budget deficit and debt as well as the managements decision to discontinue the activity in Hungary, via the subsidiarys sale, contributed decisively to the formation of Group financials during the 1st quarter of 2010.
As expected, the fiscal measures imposed and the uncertainty in the macroeconomic developments, restricted considerably consumer spending leading to lower sales for Group companies compared to the respective period in 2009. This drop in sales, naturally also reduced operating profitability.
Counterbalancing the aforementioned developments, management interventions succeeded in lowering total administrative and selling costs, leading to pre & after tax results of the parent company, before costs for discontinuing operations of the subsidiary in Hungary, to exhibit improvement compared to the 1st quarter of 2009.
Similar interventions will continue throughout the current year both at expenses level and at the evaluation of the subsidiary companies, so as - and despite the exogenous economic circumstances - to ensure acceptable financial results but most importantly to ensure conditions for consolidated results at parent company levels for the 2011 fiscal year under current conditions. More analytically, Group and parent company financials exhibited the below mentioned course in the first quarter of 2010 compared to the first quarter of 2009.
Group sales stood at Euro 11.05 million versus Euro 12.5 million, while those of the parent company at Euro 7.66 million versus Euro 8.95 million - that is lower by 11.63% and 14.45% versus the respective quarter in 2009.
After tax results (losses) of the Group were formulated at Euro 1.332 million versus Euro 1.392 million, losses reduced by Euro 60 thousands, while parent company and before depreciation for the one-off loss from the sale of the subsidiary in Hungary, were formulated at losses of Euro 362 thousands versus losses of Euro 228 thousands in 2009. The one-off burden of parent company results in the first quarter of 2010 from the transfer of the subsidiary in Hungary reached Euro 2.452 million.
Total administrative, selling and financial expenses of the Group stood at Euro 5.655 million versus Euro 5.983 million in the respective period in 2009, reduced by 5.48%.
Total Group liabilities on 31/03/2010 remained at the levels of the first quarter of 2009 despite the unfavourable economic developments that took place in the quarter.
Group management, as already mentioned, will take all necessary measures to adjust to the new economic situation and will implement all necessary adjustments for the continuity of the timeless parent company profitability coupled with minimization and elimination of losses for the subsidiaries.