Athens, 27/03/2014

Heracles GCC Group announces 2013 Results

Results reflect the continued effects of recession and the one-off impact of the cement production structure reorganization

The Group efforts to increase export activity, product and processes innovation and cost efficiencies continue to intensify     

Heracles GCC Group of Companies (Group) announced today sales of 235.1 million Euros for 2013, increasing by 3.1% compared to 228.1 million Euros in 2012. Sales of the Company were at 210.6 million Euros, increasing by 4.4% compared to 201.7 million Euros in 2012.

The Group's earnings before taxes, interest, depreciation and amortization (EBITDA) was a loss of 131.1 million Euros in 2013 compared to a loss of 46.7 million Euros in 2012. The Company's EBITDA was a loss of 120.0 million Euros in 2013 compared to a loss of 52.2 million Euros in 2012. 

The Group presented in 2013 losses after taxes of 136.2 million Euros, compared to 76.6 million Euros losses after taxes in 2012. In 2013, the Company presented losses after taxes of 118.6 million Euros compared to 76.3 million Euros losses after taxes in 2012.

The results of the Group and the Company in 2013 were strongly affected by the reorganization of the cement production structure. Following the permanent cease of Halkis plant operation, the Company proceeded with total impairment of the assets of the plant and relevant provisions. The non-recurring charge, net of deferred taxes, amounts to 83.3 million Euros and affected the financial results of the Company and the consolidated financial results of the Heracles Group of Companies.

In 2013, the deep recession in the domestic market of private construction activity, for a fifth consecutive year, as well as the substantial suspension of the construction activity in public and co-financed infrastructure significantly affected the results. Both the Group and the Company continue to intensify their export activity. As a result, the sales increase in 2013 is attributed to the increase of exports.

In addition, the Group and the Company continued in 2013 implementing measures to reduce operating costs and optimize performance in production, supply chain and administration activities, while at the same time efforts to explore opportunities for offering innovative products and solutions both in domestic and international markets intensify.

The Group's investments in 2013 amounted to 7.6 million Euros compared to 5.4 million Euros in 2012. They focused on the Group's strategic priorities of occupational health and safety, competitiveness at international level, sustainable development, environmental performance, energy and the use of alternative fuels.

For the domestic market, it is expected that in 2014 the construction activity in infrastructure, including the major road projects, will have a positive contribution in building materials demand. As per the private construction activity, it is expected to stabilize in 2014 at low levels.