In the first quarter of 2008, the Group of HELLENIC FABRICS S.A. maintained its turnover and improved its operating profit, despite an unfavorable and competitive global economic environment, which was characterized by the global economy 's slowdown, higher inflation, the sudden rise in fuel and energy costs and the further strengthening of the euro versus the dollar.
Such conditions affect the products of HELLENIC FABRICS S.A., which are sold mainly to European countries with 76% of the consolidated and 82% of the parent company 's turnover being exported. Simultaneously, the Company?s operating costs were negatively affected by the strikes of the Public Power Corporation during the first quarter of 2008 and the continuing strikes in Thessaloniki Port Authority.
More specific, the Group?s consolidated turnover amounted to euro 21.52 mln, in comparison to euro 21.30 mln of the previous quarter, while the parent company 's turnover amounted to euro 19.02 mln in comparison to euro 20.30 mln of the relevant quarter of 2007, showing a reduction attributed entirely on reduced cotton sales.
Gross profit for the Group improved to 10,04% of turnover from 9,48% in the relevant previous period, while the parent?s gross profit increased to 9,85% of turnover (from 7,89% in the relevant quarter of last year).
Profit before tax, interest and depreciation (EBITDA) of the Group was 3.93% of turnover, in comparison to 2,68% in the relevant quarter of 2007 and amounted to euro 0,85 mln. Similarly for the parent company, EBITDA improved to 2,06% of turnover, in comparison to 0,91% in the relevant quarter of 2007 and amounted to euro 0,39 mln.
Consolidated results before taxes amounted to euro -1,68 mln in comparison to euro -1,71 mln in the relevant quarter of 2007, while consolidated results after taxes amounted to euro -1,50 mln from euro -1,16 and were influenced by the reduction in the recognition of credit tax from tax losses, as opposed to the relevant quarter of 2007, where the total sum of it was recognized.
The consolidated net results after taxes and minority rights amounted to euro -1,38 mln in comparison to euro -1,13 mln in the relevant quarter of 2007.
Shareholder's equity amounted to euro 73,27 mln from euro 74,64 mln at the end of 2007, shaping the Debt-equity ratio to 0,78. Moreover, Earnings per share ratio amounted to euro -0.10 from euro 0.08 in comparison with the first quarter of 2007. Finally, ?Price to book value? ratio (P/BV) amounted to 0.22.
For 2008, investments amounting to euro 2,5 mln have been budgeted, which concern installation of state-of-the-art weaving looms as well as infrastructural works, which will enhance the quality of manufactured products, the protection of the environment and will lead to a reduction of cost.
The Management of HELLENIC FABRICS S.A. is focusing for 2008, on actions targeted at the improvement of the company?s efficiency as well as at development plans, in a constantly intensifying competitive environment with unfavorable economic conditions.