Thessalonica, August 30, 2013

 

Press Release

 

H1 2013 CONSOLIDATED FINANCIAL RESULTS ACCORDING TO IFRS

 

ü  DECREASE OF TURNOVER FOR SPRIDER STORES IN THE FIST HALF OF 2013

ü  CONTINUOUS REDUCTION OF OPERATING COST

 

SPRIDER STORES Group of companies released its 6M 2013 consolidated financial results according to the International Financial Reporting Standards.

 

The ongoing decline of consumption due to the continuing recession of the Greek economy, the debt crisis and the uncertainty that prevails in Greece, were the main characteristics of the current year's first half. It is mentioned indicatively that during the first five months of the year, according to the latest data published by the Hellenic Statistical Authority, apparel retail sales in Greece dropped by 6.5%.

 

Within this framework the Group continued its restructuring and sales network rationalization both in Greece and abroad, by interrupting the operation of 24 points of sales in Greece as well as 7 in Romania and 1 in Bulgaria. Consequently, on June 30, 2013 the Group operated a network of 61 points of sales, out of which 54 stores ere located in Greece, 3 in Romania and 4 in Bulgaria.

Please note that Group's subsidiaries in Romania and Cyprus are now in liquidation process.

Following the end of the first half of the current period and until today the Group proceeded to the interruption of operations of additional 10 point of sales in Greece and 3 points of sales in Bulgaria. Consequently, on August 30, 2013 the Group's sales network numbered 48 stores, out of which 44 were located in Greece, 3 in Romania and 1 in Bulgaria.

 

Moreover, on January 8, 2013  the parent company has submitted to the responsible court of Thessalonica, a request for entry in a restructuring procedure and reception of precaution measures, according to the provisions of article 99 Law 3588/2007, as it is replaced and valid to date. The submission of the request was deemed necessary in order to reassure the viability of the company, the interests of its employees as well as for the company to be protected against its debtors. The request was discussed on April 23, 2013 and was overruled based on the decision no 8552/2013 of the Court of Thessalonica. The company submitted an appeal and the Three Membered Court of Appeals of Thessalonica accepted the above request based on which any personal prosecution from any kind of creditor is forbidden, until a decision is issued on the appeal submitted by the company, against the above decision of the Court if Thessalonica, and under the term that the appeal will be discussed on September 23, 2013 10:00 am, as it has already been set.

 

Based on the above, consolidated sales decreased by 45.8% standing on € 22,365 thou over € 41,261 thou in the respective period last year. The most important factors in determining the drop in sales can be summed up in the adverse conditions prevailing in the Greek market, as they were described above, as well as in the reduction of the number of stores under operation, according to the Group's restructuring plan.

 

Respectively, group gross profit in 6M 2013 amounted € 4,983 thou versus € 20,297 thou in the first half of 2012, reduced by 75.4%. Gross margin dropped by 26.8 percentage points to 22.3% of the consolidated turnover versus 49.1% in the respective period last year. The reduced gross margin was due, apart from the above mentioned drop in sales, to the ongoing special offers and competitive prices as well as in selling products of lower profit margin compared to last year.

 

Group EBITDA formed to losses of € 12,512 thou versus losses of € 13,473 thou in the first half of 2012. During the same period, total Group operating expenses, before depreciation, reached € 15,746 thou over € 22,246 thou in 6M 2012, reduced by 29.2%, reflecting on the Group's continuous efforts to streamline operating costs in current fiscal year as well. 

 

Following the above, consolidated EBIT for the first half of 2013 amounted to losses of € 15,082 thou over losses of € 18,095 thou in the respective period of 2012. Depreciation expense during 6M 2013 shaped at € 2,568 thou over € 4,622 thou in 6M 2012, reduced by 44.4% due to the containment of investments.

 

Group results before taxes (EBT) formed at losses € 25,548 thou in 6M 2013 versus losses of € 25,002 thou in 6M 2012.

 

Finally, group results after tax and minorities (EATAM) for the first half of 2013 amounted to losses of € 25,227 thou over losses of € 25,100 thou in the respective period in 2012.

 

The Group's management follows developments closely and continues the execution of its strategic plan in 2013 as well, while at the same time monitors the volatile conditions of both the Greek market and the regional markets where the Group operates in the SE Europe, in order to promptly adjust its strategy whenever deemed necessary. The strategic priorities for the current year continue to comprise of the rationalization of the sales network, the constraint of operational expenses, the fortification of the operational cash flow and the preservation of competitive pricing policy. In concluding, the accession in the beneficiary provisions of article 99 Law 3588/2007 as well as the collection of the compensation for destroyed inventories and fixed assets due to the fire of February 13^th, 2012, it is considered of vital importance, in order for the company to continue smoothly its operations

 

 

CONSOLIDATED INCOME STATEMENT H1 2013

(amounts in € thou)	30/6/2013	30/6/2012	Δ %
Sales	22,365	41,261	-45.7%
Gross Profit	4,983	20,297	-75.4%
(% sales)	22.3%	49.2%
EBITDA	-12,512	-13,473	NA
(% sales)	NA	NA
EBIT	-15,082	-18,095	NA
(% sales)	NA	NA
EBT	-25,548	-25,002	NA
(% sales)	NA	NA
EATΑΜ	-25,227	-25,100	NA
(% sales)	NA	NA

NA = not applicable

 

FINANCIAL CALENDAR 2013
1st Half Results	FridayOUOUS REDUCTION OF OPERATING COST, August 30, 2013
Q3 Results	Friday, November 29, 2013
FY 2013 Results	Monday, March 31, 2014

*The Group with a newer announcement has the right to amend the above dates.

 

Note:

The H1 2013 “Financial Data and Information” of SPRIDER STORES S.A. will be published on Friday, August 30, 2013.

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