November 28, 2005
With the occasion of the announcement of the financial statements for the period 01/01-30/09/2005, the company?s management announces the following:
The Company?s sales in the nine month period of the current fiscal year decreased by 3.81% compared to the respective figure of 2004. This negative turn was mainly noted during the first eight months of the current fiscal year. From September onwards, turnover presents an increasing trend and by the end of November sales will increase by 1.5% compared to the respective figure of 2004.
In order for the company to deal with the occasional, mainly time wise, competition in imports by small importers, an aggressive pricing policy by means of decreasing Gross Profit margin has been put forward for the current fiscal period. The aforementioned strategy already bared fruits and the results are evident on the positive trend of sales from September onwards; however, parent and consolidated Gross profit and Earnings before taxes were limited during the period.
Τhe Companys operating expenses were significantly restrained and presented an increase of 1.7% compared to the respective figure of 2004, while consolidated operating expenses noted an increase of 8% mainly due to the expansion plan of the OMNISHOP chain, whose sales as at 31/10/2005 have increased by 26,84% compared to respective figure of 2004, but also due to increased expenses of YALCO HUNGARY, Whose sales have increased by 66%.
Beyond the aforementioned issues which refer to the current fiscal period, the company?s management aiming at creating the proper conditions for continuous development:
1. Submitted for approval to the Ministry of Development a 3.392 million Euros investment plan for the construction of a new production line for non-stick cookware and a new warehouse of 2.000 square meters. Of this investment plan 40-50% will be subsidized.
2. The company is preparing a new investment proposal to be included in the current development legislation framework for the construction of a new, modern warehouse on the privately owned premises in Inofita, aiming at centralizing all the Logistics procedures and decreasing operating expenses which will significantly promote the companys competitiveness.