-- Q3 2009 sales increased by 3.8% vs Q2 2009 confirming the upwards
trend in terms of turnover
-- Gross Margin further increased by 4.4 percentage points vs Q2
-- Operating EBITDA (excl. Foreign Exchange and Non-Recurring items) is
positive in Q3 for the first time in 2009
Financials
9M Q3 Q2 Q1
----- ----- ----- -----
Sales 157.3 53.9 51.9 51.5
----- ----- ----- -----
Gross Profit 21.3 9.7 7.0 4.6
----- ----- ----- -----
Gross Margin 13.5% 17.9% 13.5% 9.0%
----- ----- ----- -----
Operating EBITDA -5.4 0.4 -2.5 -3.3
----- ----- ----- -----
EBITDA -9.7 -1.3 -3.5 -4.9
----- ----- ----- -----
EBT -29.6 -3.2 -6.9 -19.4
----- ----- ----- -----
Profit after tax -28.5 -3.6 -7.0 -17.8
----- ----- ----- -----
Sales / Volume / Margin:
There is a gradual but clear upward trend in sales from midyear, which is
further confirmed by a robust order intake in the fourth quarter.
Specifically, there is a steady growing trend in consumables volumes
towards pre-crisis levels and we also expect the demand for machines &
tools to pick up further during the following months.
At the same time, production efficiencies, the result of the merging of
productions units and the positive effect from increased volumes, are
leading to significant improvements every quarter in gross margins, as Q3
margin at 17.9% doubled in comparison to Q1 at 9%.
Operating Expenses / EBITDA:
As a result of the increased volumes, improved margins and reduced
operating expenses, Operating EBITDA (excl. Foreign Exchange &
non-recurring items) in Q3 was positive for the first quarter in the year,
at 0.4M EUR versus -3.3M EUR and -2.5M EUR in Q1 and Q2 respectively.
One of the main performance drivers was the continued reduction of our
operating expenses, not including transportation expenses, which for Q3
2009 were at the level of 11.6M EUR, 1.7M EUR lower than Q3 2008,
reflecting the positive effect of our cost reduction programs.
WORKING CAPITAL:
In terms of Balance Sheet management, we have focused our efforts on
further improving our working capital and have actually beaten our
projections in reducing it, as by the end of Q3 3009 it stood at 80.1M
EUR, -20% lower than at the end of 2008 and at its lowest levels of 2009.
Finally, in terms of Cash Flow generation, we had positive operating cash
flow with an ending cash balance of 12.3M EUR, as of September 30th.
OUTLOOK:
Overall, today we are reporting several tangible and significant
improvements both in our operations as well as in the overall market
conditions. We have a robust order book as the result of improving market
demand as well as stronger new customer acquisition.
With an improved operating and fixed cost structure, we believe that the
Group is well positioned to benefit from the gradual economic recovery
which is underway.
In parallel, as we have announced, we have been in constructive discussion
with our lenders, aiming to find a permanent solution to our liquidity
issue that will ensure the Group's long-term viability.
About the M.J. Maillis Group
The M.J. Maillis Group is a leader in secondary packaging providing its
clients globally with complete, high technology and cost effective
packaging solutions (one-stop-shopping) that combine packaging equipment,
packaging materials, service and support. The Group employs 1,569 people
and maintains physical presence in 18 countries in Europe, North America
and Asia, while its products are sold in more than 80 countries worldwide.
The Group's customer base extends to the food and beverage, aluminium,
steel, construction, timber and bailing industries and it is the exclusive
or preferred global supplier to an increasing number of major industrial
and consumer products multinationals such as US Steel, Nestle, Coca Cola,
P&G, Henkel, Pepsi, Mars, Lafarge, Alcoa, ArcelorMittal, Corus, Wall-mart
etc. The shares of the M.J. Maillis Group are listed on the Athens Exchange
under the ticker symbol "MAIK."
Contact Information: For more information please contact: Company Contact: Group's Investor Relations Department Tel. +302106285000 E-mail investor.relations@maillis.gr Investor Relations Advisors Capital Link Athens Theodora Ampatzi Tel. +30-210-6109-800 London Annie Evangeli Tel. +44-203-206-1320 New York Matthew Abenante Tel. +1-212-661-7566 E-mail: maillis@capitallink.com