Athens, 25/11/2013

Heracles Group announces nine months 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 Group of Companies (Group) announced today sales of 177.5 million Euros for the nine months of 2013, increased by 2.4% compared with 173.4 million Euros in the same period of 2012. Sales of the Company were at 159.8 million Euros, increased by 5.2% compared with 151.9 million Euros in the nine months of 2012.

The Group's earnings before taxes, interest, depreciation and amortization (EBITDA) was a loss of 121.3 million Euros in the nine months of 2013 compared to a loss of 49.4 million Euros in the nine months of 2012. The Company's EBITDA was a loss of 116.4 million Euros in the nine months of 2013 compared to a loss of 56.5 million Euros in the nine months last year. 

The Group presented in the nine months of 2013 losses after taxes of 118.0 million Euros, compared to 70.1 million Euros losses after taxes in the same period of 2012. In the nine months of 2013 the Company presented losses after taxes of 107.9 million Euros compared to 72.2 million Euros losses after taxes in 2012.

The results of the Group and the Company in the nine months of 2013 were significantly 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. Following the Minister of Labor, Social Security and Welfare decision No 13449/246, rejecting the planned collective redundancies requested by the Company, the non recurring charge, net of deferred taxes, amounts to 81.6 million Euros and affected the financial results of the Company and the consolidated financial results of the Group.

The deep recession in the domestic market continued affecting strongly the results in 2013. Domestic volumes stabilized in the third quarter compared to last year, albeit at low level. Both the Group and the Company continue to intensify their export activity. The sales increase in the nine months of 2013 is attributed to the increase of exports. In addition, in the nine months of 2013, the Group and the Company continued implementing measures to reduce operating costs and optimize performance in production and supply chain and administration activities, while at the same time intensify efforts to explore opportunities for offering innovative products and solutions both in domestic and international markets.