M.J.MAILLIS GROUP: Q1 2014 Financial Results

(for the period 01.01.2014 – 31.03.2014)

May 30, 2014. Athens, Greece The M.J. Maillis Group, an international group in the field of secondary packaging listed on the Athens Exchange (ATHEX: MAIK), announces its results for the period from 1 January to 31 March 2014.

Highlights:

During the first quarter of 2014 the Group turnover was negatively affected by the reduced demand for packaging machines. However, the improvement in the gross profit margin along with lower exchange losses resulted to an increased EBITDA.

Key figures for Q1 2014:

• 1^st quarter sales decreased by 10.1%
• Gross Profit Margin increased by 1.8 percentage points
• EBITDA increased by 18.7%

 Financial Performance:

Turnover for M. J. Maillis Group for the first quarter of year 2014 reached €60 million, lower by 10.1% compared to 2013, as a result of the decrease in the demand of packaging machines, part of which was set off by higher sales of consumables.  

The gross profit margin at 20.6% was higher by 1.8 pp in comparison to previous period due to higher gross margin of consumables.   

Excluding one-off income and expenses as a result of exchange differences, as well as provisions and  restructuring costs, the operating EBITDA for the first quarter of 2014 was 2.8 m€ (vs. operating EBITDA for 2013 of 3.0 m€). Respectively, total EBITDA increased to 2.5 m€ compared to 2.1 m€ in 2013 because of lower exchange losses.

Consequently Net Losses before Tax were at 4.5 m€ vs. 6.1 m€ in 2013 while Net Losses after tax were 5.3 m€ vs. 8.1 m€ in 2013.

Outlook:

The Group's performance is expected to continue being affected by the slowdown of industrial activity and weak economies of the southern countries in Eurozone with the Group focusing on further optimization of production costs and expense control.

Since the lack of liquidity in the operations of the Group remains the major limiting factor for its growth, difficult negotiations with major suppliers continue in an effort to improve the credit terms and ensure the necessary raw materials to support sales

During the last two years, there are ongoing discussions between the Management of the Group and the Bondholders for the modification of the terms and conditions (extension of agreements / reduction of interest rates etc.) of the Bond Loans. The Lenders appear to respond positively since they have note proceeded with any adverse measures for the Group / Company, following the breach of covenants. 

About the M.J. Maillis Group

The M.J. Maillis Group is a leader in secondary packaging providing its clients globally with complete, high technology and cost effective packaging solutions (one-stop-shopping) that combine packaging equipment, packaging materials, service and support. The Group maintains physical presence in 18 countries in Europe and North America, while its products are sold in more than 80 countries worldwide. The Group's customer base extends to the food and beverage, aluminium, steel, construction, timber and bailing industries and it is the exclusive or preferred global supplier to an increasing number of major industrial and consumer products multinationals such as US Steel, Nestlé, Coca-Cola, P&G, Henkel, Pepsi, Mars, Lafarge, ArcelorMittal, Tata, Walmart, etc. The shares of the M.J. Maillis Group are listed on the Athens Stock Exchange under the ticker symbol "MAIK".

For more information please contact:

Company Contact:

Group's Investor Relations Department

Tel. +30-210-6285-000

E-mail investor.relations@maillis.gr