Spectacular growth of F.G. EUROPE S.A. and Group profitability. Continuous increase in the turnover of durable consumer goods
Significant improvement in the financial figures and spectacular growth in profitability is noted for the Group F.G. EUROPE S.A., also in the first quarter 2008 which is mainly affected by the Financial figures of the parent company.
Net Earnings after taxes for the Group for the First quarter 2008 amounted to euro 2.65 mil., compared to euro 0.30 mil. for the relevant period of 2007 posting an increase of 775%. Earnings before taxes amounted to euro 3.8 mil. compared to euro 1.15 εκ. increased by 230%. Earnings before interest, taxes, depreciation and amortization (EBITDA), amounted to euro 3.255 mil. against euro 1,720 mil. increased by 89.24%.
More specifically at parent company level:
Sales amounted to euro 25.00 mil. against euro 29.54 mil., of the respective sales in 2007, noting marginal decrease by 15%, which is mainly within the framework of the decision to continuously reduce sales in the segment of prepaid mobile telephony cards. Total sales of durable consumer goods, increased by 16.37%, amounted to euro 20,70 mil. against euro 17.78 mil. for the related period of 2007.
In particular:
Sales in the sector of air conditioners for the First Quarter 2008 increased by 29.57% amounting to euro 17.57 mil. against euro 13.56 mil. for the corresponding three month period of 2007. Sales of air conditioners in the Greek market amounted to euro 10.27 mil., against euro 7.35 mil. for the related three month period of 2007, posting an increase of 39.73%, significantly enforcing the predominant position of the Company in the market sector. An important increase of 17.34% was noted in the area of exports of air-conditioners, which reached euro 7.29 mil. compared to euro 6.21 mil. in the relevant period in 2007, thus further consolidating the Company?s position in the international markets where it is active (Balkans, Italy and since January 1st 2008, Turkey).
Sales of ESKIMO and SHARP white electrical appliances amounted to euro 1.67 mil. against euro 2.04 mil. for the three month period of 2007, decreased by 18.1%. More specifically, sales of ESKIMO products posted a decrease of 19.56%, amounting to euro 0.92 mil. against euro 1.15 mil. for the relevant period of 2007, while sales of SHARP white electrical appliances reached euro 0.75 mil. against euro 0.89 mil. decreased by 15.7%.
Sales of the SHARP Consumer Electronics also posted a decrease from euro 2.18 mil. in the First Quarter of 2007, to euro 1.46 mil., due to the continuous shortage and insufficient coverage of the increasing demand for LCD TV sets during the First Quarter of 2008.
Sales of mobile telephony cards posted a decrease of 63.66%, as a result of the policy followed by the Company of reducing sales in the specific segment. Sales in the segment were reduced to euro 4.27 mil. against euro 11.75 mil. for the related First Quarter of 2007.
The increase in sales of the sector of air conditioners combined with the positive financial results of the first quarter (euro 1.69 mil. income) and the benefit from the sale of 32,25% of shares of the company HYDROELECTRIKI ACHAIAS S.A. (euro 0.92 mil.), shaped the earnings before taxes for the first quarter, into profit of euro 4.95 mil. against euro 1.23 mil. for the relevant first quarter of 2007, increased by 301.29%.
Net Profit after taxes of the parent company amounted to euro 3.72 mil. against euro 0.36 mil. for the corresponding three month period of the previous year, increased by 940.22%.
The significant difference in the increase of after tax profits is due to the tax burden of the corresponding last year?s quarter of the amount of euro 0.56 mil., which arose as the result of finalization of the tax audit for the financial years 2003 - 2005 of the parent company.
Basic Earnings per Share developed at euro 0.0705 compared to euro 0.0068 of the relevant period of 2007, increased by 936.76%.
Consolidated Figures:
Total revenues of the Group in the First Quarter 2008 amounted to euro 25.20 mil., compared to euro 29.67 mil. in the relevant period of 2007, posting a decrease of 15.05%.
Significantly increased by 51.56% are the Group?s gross profits in Q1 2008, reaching euro 7.29 mil., compared to euro 4.81 mil. for the relevant period of 2007. The posted increase of gross profits, despite the decrease of sales, is due to the significant improvement of the gross profit margin, which amounted to 28.95% in the period in question compared to 16.22% in the corresponding quarter of 2007, as a result of the increase in the sales of durable consumer goods of the parent Company and the decrease in sales of low profit margin activities of the parent company, in the area of mobile telephony cards sales.
Earnings before taxes, depreciation and amortization (ΕBITDA), as a percentage of sales amounted in the First Quarter 2008 to 12.92% compared to 5.80% in the relevant period of 2007. The significant increase in the EBITDA margin is due to the fact that while the gross profit margin increased by 78%, the increase of total expenses was contained to 23.23%, despite the significant costs (lay days, increased transportation expenses) due to the strikes in the ports.
Operating Expenses (Management - Distribution - Other) amounted to euro 4.44 mil for the First Quarter 2008 compared euro 3.60 mil. in the relevant quarter of 2007, increased by euro 0.84 mil.
The net financial results of the Group in the First Quarter 2008 developed into an income in the amount of euro 0.61 mil. compared to an expense of euro 0.51 mil. in the corresponding quarter of 2007, mainly due to increased foreign exchange gains (euro 1.37 mil.), despite the increase of interest charges (euro 1.10 mil. in Q1 2008 versus euro 0.88 mil. in Q1 2007), and despite the increase of bank debt.
Group total liabilities noted an increase of 27.32% in the First Quarter 2008 amounting to euro 129.05 mil., against euro 101.36 mil. in relevant term of 2007. The posted increase is attributed to the increase in liabilities to suppliers, mainly due to increased imports in order to cover the significant increase of durable consumer goods sales as well as the increase in short term bank debt (euro 13.00 mil.) for the funding of projects under development in the energy sector.
Net Profit before tax increased by 230.43%, reaching in Q1 2008 euro 3.80 mil. compared to euro 1.15 mil. in the respective period of 2007, forming the Profit Before Tax / Sales ratio to 15.08% as opposed to 3.88% in the First Quarter of 2007. The Group's Net Profits after tax and minority rights reached in the First Quarter 2008 euro 2.65 mil. compared to euro 0.30 mil. in the First Quarter of 2007 up by 775.24%. The Group΄s Management, taking into consideration the sales up to date, estimates that for the entire year of 2008 the Company is able to achieve an even greater growth in sales of durable consumer goods, in particular those of air-conditioners, which is expected to have a positive impact on the results and profitability of the Group.
The Quarterly Financial Statements of May 23rd, 2008 are accessible for the investment community on the Company?s website http://www.fgeurope.gr under the section Investors Relations.