-- 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