In 2007, consolidated Group sales of S&B Industrial Minerals S.A. and net profits (after taxes) reached euro 535.4 million and euro 26.7 million, reflecting increases of 17.5% and 13.3% respectively, compared to financial year 2006. Net profits after minority rights have risen by 16.2% reaching euro 25.7% million, and profits per share amounted to euro 0.84 per share versus euro 0.73 in 2006.
S&B Group Financial Results 2007
Sales 2007 at euro 535.4 million compared to euro 455.6 million in 2006 (increase of 17.5%)
Gross profit 2007 at euro 132.2 million compared to euro 115.2 million in 2006 (increase of 14.7%)
EBITDA 2007 at euro 72.1 million compared to euro 66.1 million in 2006 (increase of 9.0%)
Operating profit 2007 at euro 45.4 million compared to euro 40.2 million in 2006 (increase of 12.9%)
Pre-tax profit 2007 at euro 37.5 million compared to euro 34.2 million in 2006 (increase of 9.5%)
Net profit 2007 at euro 26.7 million compared to euro 23.5 million in 2006 (increase of 13.3%)
Net profit after minorities 2007 at euro 25.7 million compared to euro 22.1 million in 2006 (increase of 16.2%)
As a result of the carve-out of the commercial subsidiary Motodynamics S.A., approved by the extraordinary shareholders General Assembly of January 11, 2008, and completed on February 21st, its assets and liabilities as of December 31st, 2007, along with its income statements for the financial years 2007 and 2006 were reclassified. Thus, for comparison purposes, the results of the S&B Group are published with and without the above Discontinuing operations.
For the Continuing operations of the group, which form the basis of comparison for the future, consolidated sales were euro 448.7 million, higher by 19.8% versus 2006, while net profits after taxes and minority rights amounted to euro 23.1million, up by 18.4%. Accordingly, earnings per share stood at euro 0.75 compared to euro 0.64 in 2006. It is noted that, since 2004 (the first year financial statements were published according to the IFRS), turnover and net profits after minority rights for these operations have been growing at average annual rates of 14.4% and 22.8% respectively, without any material increase in net debt over this entire four year period (2004-2007).
Continuing Operations Financial Results 2007
Sales 2007 at euro 448.7 million compared to euro 374.6 million in 2006 (increase of 19.8%)
Gross profit 2007 at euro 116.1 million compared to euro 100.7 million in 2006 (increase of 15.3%)
EBITDA 2007 at euro 65.7 million compared to euro 60.1 million in 2006 (increase of 9.4%)
Operating profit 2007 at euro 39.8 million compared to euro 34.9 million in 2006 (increase of 14.0%)
Pre-tax profit 2007 at euro 32.3 million compared to euro 29.0 million in 2006 (increase of 11.3%)
Net profit 2007 at euro 23.0 million compared to euro 19.8 million in 2006 (increase of 15.9%)
Net profit after minorities 2007 at euro 23.1 million compared to euro 19.5 million in 2006 (increase of 18.4%)
For the Industrial Minerals Activities, which now represent 94.3% of the Continuing operations, sales increased by 19.1% in 2007 up to euro 423.3 million EBITDA and operating profits reached euro 64.5 million and euro 39.4 million, reflecting increases of 9.5% and 14.3 % respectively. This robust sales growth and strong operating profitability of Industrial Minerals Activities, despite the strong pressures on cost due to freights, energy prices and the weak dollar, are the result of healthy organic topline growth, which reached 10.2%, along with the pricing policy followed, improvements in productivity and a more favorable product mix of sales. Additional positive contribution came from the incorporation (from May 1st, 2008) of the acquired CEBO's share (50%) and the proportional consolidation of accounts of the continuous fluxes activities (Stollberg) in Asia (China and S. Korea) for the first-time.
The Chief Executive Officer of the Group, Efthimios O. Vidalis, commenting on the results of the year 2007 stated: "For the S&B Group 2007 was a strong year of growth in line with our expectations. The Industrial Minerals Activities, in a robust market setting, had solid organic growth in sales and profits, despite the strong challenges on cost. Moreover, with a combination of acquisitions and expansionary investments in our existing businesses, we were able to further strengthen our competitive position in most segments. Furthermore, in 2007 many new opportunities have surfaced which will be addressed in 2008 with our streamlined leading team organization. Focused on the Group's natural resources based purpose we will continue our profitable growth path."
On the basis of the results of 2007, the Board of Directors of S&B Industrial Minerals S.A. has decided to propose to the General Assembly meeting of shareholders on the 14th of May, a dividend of euro 0.31 per share versus euro 0.30 given the previous year. The proposed dividend implies a payout ratio, on the profits of the Continuing operations of 41.5% and, based on the March 12th, 2008 closing price (euro 10.30 per share) a yield of 3.0%. Moreover, as a result of the carve-out, S&B shareholders have received 1 free Motodynamics share for every 11 S&B shares. Based on the price of the Motodynamics share on the day of the carve-out (euro 5.10), the value of this transaction represents euro 0.46 per share.
Full-year 2007 financial results presentation to analysts will take place after today's end of the Athens Exchange trading and a relevant presentation will become available through the Company's website. The financial statements will be published in the press on Friday, March 14th, 2008 and on the Company's website at www.sandb.com.