Halandri, June 30, 2012

 

 

DIMINISHING SALES AS WELL AS OPERATING EXPENSES FOR SPRIDER STORES IN Q1 2012 – SIGNIFICANT AFTER TAX LOSSES DUE TO THE FEBRUARY 13^th, 2012 ARSON

 

SPRIDER STORES Group of companies released its Q1 2012 consolidated financial results according to the International Financial Reporting Standards.

 

The ongoing decline of consumption due to the continuing recession of the Greek economy, the debt crisis and the uncertainty that prevails in Greece, were the main characteristics of the current year's first quarter. It is mentioned indicatively that during Q1 2012, according to data published by the Hellenic Statistical Authority, apparel retail sales in Greece dropped by 21.3%.

 

Moreover, early in the morning on Monday, February 13, 2012 an unfavorable event took place, when the Company's headquarters in Anthousa, Attica, admitted arson attack by unidentified individuals, resulting to the complete destruction of both the headquarters and the warehouse, something that significantly affected the company's activities during the following months. The inventories and the equipment that were in the warehouse and offices of the Company were insured pursuant to SPRIDER STORES standard insurance coverage, while during this period there is cooperation with the involved insurance companies to certify the amount of losses and proceed to the payment of the relevant compensations as soon as possible.

The amount of losses due to the fire, as derived by the company's books shaped at € 12.180 thou, with possible total compensation amounting € 9.969 thou, as it is depicted in the relevant insurance contracts. However, it must be stressed, as it is provided by the Law, since up to the publication date of Q1 2012 financial statements, the Fire Department in authority has not issued an official opinion, therefore the company and the group, as provided by the law, have not formed provisions for collecting compensation from insurance companies.

 

As a consequence of the above, consolidated sales for the first quarter of 2012 reduced by 20.2% and amounted € 20.303 thou over € 25,438 thou in Q1 2011. The most important factors in determining the drop in sales can be summed up in the adverse conditions of Greek market, as they were described earlier, as well as in the temporary lack of merchandise in the company's sales network due to the arson.

 

Group gross profit in Q1 2012 amounted € 8,746 thou versus € 12,582 thou in last year's Q1, reduced by 32.6%, while gross margin dropped by 6.4 percentage points to 43.1% versus 49.5% in Q1 last year. The reduced gross margin was due, apart from the above mentioned drop in sales, to the ongoing special offers and competitive prices via higher discounts during the winter sales discount period in order to enhance competitiveness and market shares.

 

Group EBITDA formed to losses of € 11.552 thou versus losses of € 2,522 thou in the first quarter of 2011. It must be noted that Group EBITDA are burdened with the amount of € 8.198 thou, concerning losses from destroyed inventory due to the fire of February 13^th, which were depicted in the account “Other Expenses” and as it was mentioned above the company did not form the same amount of provisions for collecting the relevant insurance compensation.

During the same period, total Group operating expenses, before depreciation, reached € 11,713 thou over € 15,247 thou in Q1 2011, reduced by 23.2%, reflecting on the Group's continuous efforts to streamline operating costs.

 

Consolidated EBIT for the first quarter of 2011 amounted to losses of € 13,969 thou over losses of € 5,456 thou in the respective period of 2011. Depreciation expense during Q1 2012 shaped at € 2,417 thou over € 2,934 thou in Q1 2011, reduced by 17.6%.

 

Group results before taxes (EBT) formed at losses € 19,941 thou in Q1 2012 versus losses of € 6,269 thou in Q1 2011. It must be noted that Group EBT are burdened with the amount of € 3.982 thou, regarding losses from destroyed fixed assets due to the fire of February 13^th, which were depicted in the homonymous account and as it was mentioned above the company did not form the same amount of provisions for collecting the relevant insurance compensation.

 

Finally, group results after tax and minorities (EATAM) for the first quarter of 2012 amounted to losses of € 20,077 thou over losses of € 6,160 thou in the first quarter of 2011.   

 

The Group's management follows developments closely and continues the execution of its strategic plan in 2012 as well, while at the same time monitors the volatile conditions of both the Greek market and the regional markets where the Group operates in the SE Europe, in order to promptly adjust its strategy whenever deemed necessary. The strategic priorities for 2012 continue to comprise of the rationalization of the sales network, the increase of market share, the constrain of operational expenses, the fortification of the operational cash flow, the preservation of the competitive pricing policy and the further utilization of the supply chain infrastructure. In concluding the collection of the compensation for destroyed inventories and fixed assets due to the fire of February 13^th, 2012, it is considered of vital importance, in order for the company to continue smoothly its operations.

 

CONSOLIDATED INCOME STATEMENT Q1 2012

 

(amounts in € thou)	31/03/2012	31/03/2011	Δ (%)
Sales	20,303	25,438	-20.2%
Gross   Profit	8,746	12,582	-30.5%
(% sales)	43.1%	49.5%
EBITDA	(11,552)	(2,522)	ΜΕ
(% sales)	ΜΕ	ΜΕ
EBIT	(13,969)	(5,456)	ΜΕ
(% sales)	ΜΕ	ΜΕ
EBT	(19,941)	(6,269)	ΜΕ
(% sales)	ΜΕ	ΜΕ
EAT	(20,077)	(6,160)	ΜΕ
(% sales)	ΜΕ	ΜΕ

NA = not applicable

 

FINANCIAL CALENDAR 2012
Ordinary   General Shareholders Meeting	Friday, June 29, 2012
1st   Half Results	Thursday,   August 30, 2012
Q3   Results	Thursday,   November 22, 2012
FY   2012 Results	Thursday,   March 21, 2013

 

Note:

The Q1 2012 “Financial Data and Information” of SPRIDER STORES S.A. will be published on Saturday, June 30, 2012.