Halandri, June 8, 2012

 

TURNOVER DECREASE FOR SPRIDER STORES IN FY 2011 –

DECREASE OF OPERATING EXPENSES & CONTINUATION OF SALES NETWORK' RATIONALIZATION

 

SPRIDER STORES Group of companies released its FY 2011 consolidated financial results according to the International Financial Reporting Standards.

 

The year 2011 was characterized by unprecedented adverse conditions prevailing in the Greek economy and in the retail market of clothing - footwear as well as the consumer goods market in general, as a result of the economic and financial crisis and the measures adopted and implemented to deal with it. The result of the above was the drop in the activity, the reduction of the disposable income and hence of the purchasing power of the consumers and the shrinking of consumer confidence and the shock of psychology. Note that according to the Greek Statistical Authority, the reduction of the retail clothing - footwear in 2011 stood at 19.8%.

 

As regards SPRIDER STORES Group of companies it is noted that early in the morning on Monday, February 13, 2012 an awkward fact was held, when the Company's headquarters in Anthousa, Attica, admitted arson attack by strangers, resulting to the complete destruction of both the headquarters and the warehouse, fact 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 S.A. 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.

 

Within this adverse business environment, the Group continued the rationalization of its sales network and opened two (2) new stores in Xanthi and in Orantea in Romania, while it ceased the operation of five (5) stores out of which four in Greece (Aspropirgos, Glyfada, Komotini, Promachonas) and one in Sofia in Bulgaria. As a result, on December 31st 2011 the Group was operating a significantly extended network of 111 points of sales of which 85 are located in Greece, 17 are located in Romania, 7 in Bulgaria and 2 in Cyprus.

 

As a result of the above, FY 2011 consolidated turnover decreased by 18.7% standing at € 117,427 thou. compared to € 144,432 thou. in 2010. At the same time, gross profit stood at € 63,248 thou. versus € 80,597 thou. decreased by 21.5% compared to 2010. Gross profit margin in 2011 decreased by 1.9 percent points compared to 2010 standing at 53.9% of the consolidated turnover versus 55.8% on 31/12/2010. This decrease in mainly attributed to the aggressive commercial policy, through the increased and continuous sales that took place in the stores of the Company during 2011, action which was necessary to enable SPRIDER STORES to boost its market share.

 

Group EBITDA formed at € 2,442 thou. versus € 6,805 thou. last year, decreased by 64.1%. It is noted that total consolidated expenses decreased by 15.1% standing at € 61,104 thou. versus € 71,944 thou. in 2010, reflecting Management's efforts to constrain expenses.

 

Group ΕΒΙΤ stood at losses of € 9,887 thou. compared to losses of € 4,523 thou. in 2010, while depreciation in 2011 stood at € 12,329 thou. compared to € 11,328 thou. in 2010.

Group ΕΒΤ stood at losses of € 15,629 thou. compared to losses of € 10,783 thou. last year. Please note that:

• Net financial cost stood at € 3,636 thou. compared to € 2,181 thou., increased by 66.7%, reflecting the increased cost of serving the debt, due to the increased borrowing rates.
• FY 2011 results were burdened with extraordinary non recurring losses of € 2,106 thou. related to the cease of operation of the aforementioned stores.

 

Finally, Group ΕΑΤΑΜ stood at losses of € 18,643 thou. compared to losses of € 9,910 thou. in 2010.

 

Parent Company's figures were significantly better, especially as regards operating profits. Turnover marked a 18.7% decrease standing at € 112,156 thou. versus € 138,003 thou. in FY 2010. Gross profit formed at € 58,520 thou. versus € 73,698 thou. marking a 20.6% decrease versus FY 2010 while gross profit margin formed at 52.2% of the company's turnover versus 53.4% in FY 2010, marking an decrease of 1.2 percent points.   

EBITDA amounted to € 5,331 thou. versus € 7,391 thou. in FY 2010 decreased by 27.9%.

Accordingly, ΕΒΙΤ amounted to losses of € 5,356 thou. versus losses of € 2,466 thou. in FY 2010.

Results before taxes (ΕΒΤ) amounted to losses of € 13,232 thou. versus losses of € 25,958 thou. last year. Finally, results after tax (EAT) amounted to losses of € 15,433 thou. versus losses of € 25,755 thou. in 2010.

 

Within the framework of SPRIDER STORES investment plan, the total investments realized within 2011 stood at € 6,715 thou. and concerned primarily the rationalization of the sales network, the renovation of existing sales points and the upgrade of the IT system. It is worth noting that the Group within 2011 completed the installation and operation of its new ERP system which enables better monitoring of its supply chain and its various procedures. Furthermore it should be noted that the said investments were practically financed through the operational cash flow which in FY 2011 stood at € 5,403 thou. and cash in hand highlighting that even within difficult times SPRIDER STORES continuous to generate positive flows from operating activities.

 

The Group's management 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.

 

The Board of Directors will not propose the distribution of dividend to the Annual General Meeting of Shareholders, scheduled to meet on Friday, June 29, 2012.

 

The Group's management informs the investment community that given the changing business environment it will not proceed with any estimates regarding the group's financial performance for FY 2012.

 

FY 2011 Income Statement

 

(amounts in € thou.)	31/12/2011 (1)	31/12/2010 (2)	31/12/2009 (3)	Δ (%) (1) – (2)
Turnover	117,427	144,432	163,881	-18.7%
Gross Profit	63,248	80,597	89,416	-21.5%
(% of turnover)	53.9%	55.8%	54.6%
EBITDA	2,442	6,805	13,154	-64.1%
(% of turnover)	2.1%	4.7%	8.0%
EBIT	(9,887)	(4,523)	1,440	NA
(% of turnover)	NA	NA	0.9%
EBT	(15,629)	(10,783)	(1,452)	NA
(% of turnover)	NA	NA	NA
EAT	(18,643)	(9,910)	(4,379)	NA
(% of turnover)	NA	NA	NA

• NA : Non applicable

 

 

FINANCIAL CALENDAR 2012
Q1   Results	Until 30/06/2012
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

 

Σημείωση: SPRIDER STORES S.A. «Financial Data & Information» of full year 2011 will be published on Friday, June 8 2012.

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