3rd Quarter of F.G. EUROPE S.A. Group
PRESS RELEASE
November 28th, 2013
3rd Quarter of F.G. EUROPE S.A. Group
- Decrease in Group's total liabilities due to decline in Group's bank debt
- Considerable decrease in Group's financial results (expenses)
- Decrease in Company's general expenses
- Conservation of high level of exports for the Parent Company
As at 30/09/2013, the preservation of Company‘s exports at a satisfying level (€ 49.77 m against 50.34 m at 30/09/2012), limited the downward movement of Company's sales to the point of 8.87% (€ 71.55 m from € 78.52 m at 30/09/2012), effected by the 36.81% decline in Company's domestic sales.
Said decrease in domestic sales, mainly due to unfavorable weather condition occurred inGreeceduring summer, along with the preservation of high level of export, made Company's exports to represent the 73% of air conditioners sales and the 70% of its total sales. Said participation of exports in Company's mix of sales reintegrates FG EUROPE S.A. in the Index “FTSE/ASE International Activity Plus”, weighted at 28%.
The abovementioned decline in Company's sales was partially offset by the 9.57% decrease in general expenses (€ 11.52 m against € 12.74 m in the 3rd quarter 2012), implementing a slight decline of EBITDA (€ 6.49 m against € 6.98 m in the 3rd quarter 2012) and a slight enhancement of index EBITDA/Sales at the point of 9.07% (8.89% as at 30/09/2012).
Company's financial expenses were further decreased by 31.61%, preserving a satisfying level of EBT and net income, amounted to € 4.39 m (against € 5.50 m at 30/09/2012) and € 3.32 m (against € 4.39 m at 30/09/2012) respectively.
At the Parent Company Level:
As at 30/09/2013, air conditioners sales account for € 68.36 m (€ 74.44 m at 30/09/2012), presenting an 8.16% decrease. Sales in domestic market also decreased at € 18.59 m from € 24.06 m achieved in the previous year, presenting a 22.73% decline. Air conditioners exports were slightly decreased within the same period at € 49.77 m (€ 50.34 m at 30/09/2012).
Maintaining an upward movement, Sales of Eskimo white consumer goods presented a 37.12% increase, (€ 1.81 m against € 1.32 m at 30/09/2012). On the other hand, sales of SHARP and Midea were decreased in the first nine months 2013 and account for € 1.34 m (€ 2.67 m at 30/09/2012).
Company's gross profit, decreased by 13.8% and account for € 16.81 m (€ 19.50 m at 30/09/2012), mainly due to sales decrease in the 3rd quarter 2013. Gross profit margin stood at 23.49% against 24.83%, decreased by 1.34 units.
Company's stock rose to € 47.59 m, (€ 35.00 m at 31/12/2012), mainly due to the limited volume of sales occurred in the 3rd quarter 2013. Trade and other receivables, amounted to € 33.04 m, were considerably reduced (€ 40.70 m at 30/06/2013). Taking also into consideration that such receivables mainly include customers' outstanding balance, according to Company's credit policy, the majority of them is expected to be received within the last quarter 2013.
At the Group Level:
As at 30/09/2013, Group's total sales presented a 8.42% downward movement (€ 80.17m against € 87.55 m in the respective period 2012) mainly due to abovementioned decrease in Company's sales.
Group‘s gross profit accounts for € 20.65 m (€ 23.64 m at 30/09/2012), presenting a 12.66% decrease. Gross profit margin stood at 25.76% against 27.01% in the 3rd quarter 2012, mainly influenced by the performance of the Parent Company.
EBITDA decreased at € 11.48 m (€ 13.95 m at 30/09/2012), while the index EBITDA/Sales also shrank to 14.31% (15.94% in the 3rd quarter 2012).
Despite the decline in general expenses at the Parent Company level, Group's general expenses presented a 2.76% increase, mainly due to extraordinary taxation of 10% (€ 0.85 m) implemented on revenues received from Group's energy companies. More specifically, Group's general expenses account for € 13.46 m, (€ 13.10 m in the 3rd quarter 2012), while the index General Expenses/Sales reached the 16.79% against 14.97% in the 3rd quarter 2012.
Group's financial results significantly decreased by 54.16%, amounted to € 1.58 m (€ 3.45 m at 30/09/2012). Said result was mainly achieved due to the increase in net exchange differences (€ 1.16 m against € 0.05 as at 30/09/2012) along with the income of € 0.65 m received from the sale of securities.
Group's total liabilities decreased by 3.25% and amounted to € 138.84 m (€ 143.50 m as at 31/12/2012), were influenced by the relief of Group's bank debt (€ 76.08 m at 30/09/2013 against € 87.13 m at 31/12/2012). In October 2013, Group's debt was further decreased by € 7.7 m, as it received the outstanding balance of a pending subsidy, which was fully financed with a bridge loan.
Group's EBT presented a 20.87% decrease, amounted to € 6.15 m (€ 7.77 m at 30/09/2012), while the relevant index EBT/Sales shrank to the 7.67% (8.88% at 30/09/2012). Net income after tax and minority rights presented a 21.94% decline and accounts for € 4.06 m (€ 5.21 m at 30/09/2012).
On 10/10/2013, the Ministry of Development, Competitiveness and Shipping, with its decision numbered Κ2-5977, approved the absorption of the 100% subsidiaries FG SERVICE S.A. and FG LOGISTICS S.A. by the parent company FG EUROPE S.A.
In the following days, upon completion of the relevant procedures, FG EUROPE S.A. will issue a new corporate bond loan of approximately € 65 million, which will be used to refinance existing long-term and short-term bank debt as well as for working capital.
Financial statements for the period ended September 30th will be available to the public on the Company's website (www.fgeurope.gr) under the section “Investors Relations”, on Thursday 28/11/2013.
For further information please contact the Investors Relations Department of FG EUROPE S.A., 128 Vouliagmenis Av., 166 74 Glyfada, Tel. +30 210 9696500, Fax +30 210 9603802, ir@fgeurope.gr.
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