CONSOLIDATED FINANCIAL RESULTS
FOR THE FULL YEAR 2007 (I.F.R.S.)
NIKAS SA Group of companies released its financial results for the full year 2007, according to the International Financial Reporting Standards (I.F.R.S.).
The group's strategic restructuring and recovery plan is already showing results as was depicted in the positive 3rd quarter and continues in the 4th quarter results of fiscal year 2007 as is shown in the group?s activity growth as well as the improvement of the financial performance.
The course of the Parent Company is especially positive as FY 2007 financial results clearly show the positive impact from the restructuring and reorganization efforts of the group's management during the year. In more detail, P.G. NIKAS SA parent Company turnover formed at euro 99.0 mil. over euro 94.8 mil. in FY 2006 marking a 4.5% increase. Note that the group's strategic product sales grew by 6.3% while sales in the products segments under restructuring appear lower by 4% as expected.
Moreover, parent company gross profit increased substantially by 16.7% and mounted to euro 29.0 mil. in FY 207 over euro 24.8 mil. in FY 2006, while gross profit margin formed at 293% of the Company's sales improved by 3 percentage points over FY 2006, which clearly shows the impact from the shift to selling new higher value added products as well as from the streamlining of cost and the implementation of the new supply chain strategy.
Accordingly, earnings before interest taxes and depreciation (EBITDA) amounted to euro 9.0 mil. over euro 5.6 mil. in FY 2006, marking a substantial increase by 60%. Consequently, net after taxes results show turnaround as from losses of euro 1.2 mil. in FY 2006, the Company marked net earnings of euro 1.9 mil. in FY 2007. This very positive turnout of events was also burdened by the non recurring additional taxes amounting ? 1.6 mil. as a result of the tax audit which was completed and was announced previously.
On a consolidated level, group turnover amounted to euro 106 mil. versus euro 107 mil. in FY 2006. Excluding the sale in 2006 of subsidiary "PLATAION SA", the group's activity eased slightly by 1% as a result of the restructuring and recovery efforts set by the management in order to build a new product mix as well as to achieve geographic dispersion of activity and sales. As a result, gross profit margin for the group formed at 29.1% of the group's turnover marking a 3.2 percentage point increase over 2006 which formed at 25.9% while gross profit amounted to euro 30.8 mil. in FY 2007 over euro 27.7 mil. in FY 2006.
Accordingly, group EBITDA marked a 23.8% increase and formed at euro 7.8 mil. over euro 6.3 mil. in the previous fiscal year 2006. This substantial improvement is mainly due to the streamlining of operating cost as a result of the new restructuring policy as well as to the group?s organic growth.
Last, net after taxes and minorities results formed at losses of euro 2.2 mil. versus losses of euro 510 thou. the previous fiscal year 2006 mainly due to the ordinary tax audit results which, as mentioned above, resulted to an additional non-recurring tax amount of euro 1.6 mil. as well as to additional financing cost and depreciation amounting to euro 1.2 mil. for the financing of the new investments and the development and distribution of the new products.
Summarizing the above, in FY 2007, P.G. NIKAS SA implemented its strategic restructuring plan of the group, realized new investments aiming at creating new facilities and product lines, upgrading existing production and streamlining cost. At the commercial level, the new policy was implemented whereby the group focuses on higher value added products and the results are already evident in the 4th quarter of 2007, when the Group managed to increase its market share in these specific products that the new commercial policy is targeting.
Hence, as regards FY 2008, the group expects the impact of all these efforts to affect the group's results both at the parent company level as well its subsidiaries, and is also focusing its efforts in expanding activity in the SE Europe and indicatively in countries such as Bulgaria and Romania exploiting its experience, transferring its know how, always leaning on the group's strong brand name.
Note: The Financial Statements for the Full Year 2007 will be available at the company's website www.nikas.gr and will be published on the daily financial press on Monday March 31, 2008