SOURCE: F.G. Europe S.A.

November 21, 2008 14:06 ET

F.G. Europe S.A. Financial Results for the Nine-Month Period Ended September 30, 2008

ATHENS, GREECE--(Marketwire - November 21, 2008) - F.G. Europe S.A. (ATH: FGE) (Bloomberg ESC.GA) (Reuters ESKr.AT) announced today its financial results for the nine-month period ended September 30, 2008, as follows:

--  Net Profits increased by 34.46%
--  Durable Consumer Goods Sales Revenue continued to grow
--  Increase of Exports
    

Sales of durable consumer goods for the nine-month period ended September 30, 2008 continued to grow, positively affecting F.G. Europe's financial results. In particular, revenue from sales of durable consumer goods during the nine-month period of 2008 amounted to Euro 111.21 million against Euro 98.95 million for the previous corresponding period of 2007, posting a 12.4% increase. This can largely be attributed to the continued increase in sales of air-conditioners, which, during the nine-month period alone, reached Euro 98.74 million and outgrew total air-conditioners sales for the whole FY 2007 (Euro 97.87 million).

Earnings Before Tax for the parent company posted an increase of 29.14%, amounting to Euro 22.82 million, compared to Euro 17.67 million for the respective period of 2007, largely affected by the increase in sales of durable consumer goods.

Earnings After Tax rose to Euro 16.91 million against Euro 12.57 million for the relevant nine-month period of 2007, posting an increase of 34.5%

Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) amounted to Euro 24.98 million for the period in question, compared to Euro 18.80 million for the previous corresponding period of 2007, increased by 32.9%. As a result EBITDA margin for the period in question was 20.00% against 14.67% for the relevant period of 2007.

(Amounts in              Consolidated                    Company
 Euro thousands ----------------------------  ----------------------------
 EUR)              1/1-       1/1-                1/1-      1/1-
                9/30/2008  9/30/2007  Change%  9/30/2008 9/30/2007  Change%
                ---------  ---------  ------  ---------  ---------  ------
Sales Revenue     126,289    128,678   -1.86%   124,929    128,113   -2.49%
Less: Cost of
 sales            -86,784    -96,494  -10.06%   -86,054    -96,411  -10.74%
Gross profit       39,505     32,184   22.75%    38,875     31,702   22.63%
Gross profit
 margin             31.28%     25.01%  25.07%     31.12%     24.75%  25.74%
Less: Other
 Expenses         -17,249    -13,797   25.02%   -16,181    -12,970   22.22%
EBIT               22,923     18,746   22.28%    23,332     19,090   22.22%
EBITDA             25,409     18,545   37.01%    24,978     18,796   32.89%
EBITDA margin       20.12%     14.41%  39.63%     20.00%     14.67%  36.33%
Financial cost,
 net               -2,065     -1,642   25.76%      -509     -1,417  -64.08%
Earnings before
 tax               20,858     17,104   21.95%    22,823     17,673   29.14%
Less: Income
 tax               -5,658     -5,005   13.05%    -5,917     -5,100   16.02%
Net Profit for
 the period        15,200     12,099   25.63%    16,906     12,573   34.46%
Attributable as
 follows:
Parent Company     15,862     12,263   29.35%
Minority
 Interest            -662       -164
Earnings per
 share             0.3004     0.2323   29.32%    0.3202     0.2381   34.48%
                =========  =========  ======  =========  =========  ======

More specifically, at parent company level:

Total revenue from sales was EUR 124.93m for the nine-month period ended September 30 2008, compared to EUR 128.11m in the previous corresponding period, posting a marginal decrease of 2.48%.

Sales of air-conditioners increased by 18% and rose to EUR 98.74m, against EUR 83.47m in the respective nine-month period of 2007. Sales of air-conditioners in the domestic market continued to grow, generating EUR 65.18m of revenue, compared to EUR 54.15m in the relevant period of 2007, representing an increase of 20%, while exports of air-conditioners to foreign markets where the company is active rose to EUR 33.55m for the nine-month period of 2008, against EUR 29.32m for the respective period of 2007, representing a significant increase of 14%. It is worth also noting that for the six-month period ended June 30 2008 this percentage was 7%.

Sales of ESKIMO and SHARP white electrical home appliances (marginally increased compared to the first half of 2008, when they had dropped by 21%) amounted to EUR 7.67m, against EUR 9.08m for the nine-month period of 2007, representing a decrease of 16%.

Sales of SHARP Consumer Electronics saw a decrease of 25% during the nine-month period, amounting to EUR 4.80m, against EUR 6.39m for the relevant period of 2007.

Within the framework of the Company's implemented policy of gradual withdrawal from the low profit margin mobile telephony market, sales of mobile telephony products continued to decrease by 53% and amounted to EUR 13.72m for the nine-month period ended September 20 2008, as opposed to EUR 29.16m during the previous corresponding period of 2007.

Consolidated group figures:

Total revenue from sales was EUR 126.29m for the nine-month period ended September 30 2008, compared to EUR 128.68m in the previous corresponding period, posting a marginal decrease of 1.86%.

Gross profit amounted to EUR 39.51m, compared to EUR 32.18m in the respective nine-month period of 2007, representing an increase of 22.75%. This increase can largely be attributed to the on-going change in sales mix (sales of durable consumer goods now account for 89% of total revenue generated from sales for the parent company) and the decrease in cost of sales which dropped by 10%. Gross profit margin thus closed at 31.28% for the nine-month period of 2008, against 25.01% for the corresponding period of 2007, representing an increase of 25%.

Earnings before interest, tax, depreciation and amortization as a percentage of sales reached 20.12%, compared to 14.41% in the corresponding previous period of 2007, posting an increase of EUR 6.86m, or 39.63%.

Administrative, distribution and other expenses rose to a total of EUR 17.25m for the period in question, against EUR 13.80m for the corresponding period of 2007, resulting to a change in the Other Expenses/Sales Revenue ratio, which closed at 13.66%, compared to 10.72% for the corresponding period of 2007. This 2.74 point increase can mainly be attributed to an increase noted in logistics cost, as a result of the increase in sales of durable consumer goods.

Net financial result (cost) increased by 25.76% compared to the relevant period of 2007, and amounted to a total of EUR 2.07m against EUR 1.64m. Financial revenues from positive (credit) exchange rate differences, and other sources reached a total of EUR 2.73m for the period in question against EUR 2.04m for the corresponding period of 2007, representing an increase of 33.83%, but these were counterbalanced by a 30% increase in financial expenses, as a result of an increase in debt liabilities of the parent company, as well as its subsidiaries operating in the energy sector, which counted towards shaping the final net financial result for the Group.

Total liabilities for the Group posted an increase of 51.40%, amounting for the period in question to EUR 153.46m against EUR 101.36m in the corresponding nine-month period of 2007. This increase can mainly be attributed to: a) the increase in short-term and long-term debt obligations, due to additional financing that the increase in sales of durable consumer goods required (which respectively resulted to a 44.27% increase in trade receivables); b) the increase of obligations towards vendors (due to the increase of 37.68% in stock inventories in order to satisfy increased demand, mainly for air-conditioners); and c) additional financing needs requested for subsidiary R.F. ENERGY S.A., operating in the energy sector.

Net earnings before tax increased by 21.95%, and amounted to EUR 20.86m in the nine-month period of 2008, against EUR 17.10m in the corresponding previous period of 2007, thus shaping the EBT/Sales ratio to 16.52% against 13.29%, for the relevant period of 2007.

Net earnings after tax and minority interest amounted during the nine-month period of 2008 to EUR 15.20m, against EUR 12.10m in the corresponding previous period of 2007, representing an increase of 25.63%.

Finally, Management estimates, taking also into consideration figures from up-to-date sales, that financial result for the whole Fiscal Year 2008 will largely fall along the lines of the previously announced on September 17th, 2008 revised projected financial results of FY 2008.

Financial Statements for the nine-month period ended September 30, 2008 are available on the Company's website (URL: http://www.fgeurope.gr) under section "Investors Relations."

About F.G. Europe S.A.

F.G. Europe S.A. is active in the field of importing and wholesaling air-conditioners, consumer electronics, electrical house appliances and mobile telephony services, logistics, consulting, installation, sales and after sales service as well as in the energy sector focusing on the management of energy projects but also on the production area through the development of hydro-electrical power and wind parks. The Company is active as a wholesaler of selected world-class brands such as FUJITSU, GENERAL, SHARP, FUJI ELECTRIC, CLIVET, ESKIMO, DYNAMIC, and GREE in the Greek, Italian, Turkish (since 1/1/2008) and Balkan markets.

The Company's shares are listed on the Athens Exchange under the symbol "FGE."

For more information, please visit our website www.fgeurope.gr

Contact Information

  • Contacts:

    Company Contact:
    F.G. Europe S.A.
    Investors Relations Department
    128, Vouliagmenis Avenue,
    Glyfada - Athens 166 74
    Greece
    Tel. +30 210 9696500,
    Fax +30 210 9603802
    Email ir@fgeurope.gr

    Capital Link
    Asi Skoufa
    Athens
    Tel. +30-210-6109-800

    Annie Evangeli
    London
    Tel. +44-203-206-1323

    Nicolas Bornozis
    New York
    Tel. +1-212-661-7566
    Email: fgeurope@capitallink.com