Stable sales, low prices, increased net profits

•  Increase by 19,39%, net earnings at € 94,6mil
• Capital Return of €0,17per share

 During the toughest 12months period for the Greek retail market, Jumbo Group the largest retail company of toys, baby products, stationary products and other relevant products in Greece, announces impressive results. During the financial year July 2010- June 2011 sales of the Group reached at €489,97m from € 487,33m of the previous year, implying an increase of 0,54%. Group’s net earnings reached € 94,60m from € 79,24m of the previous year implying an increase of 19,39%.

The Group during the financial year ended 30.06.2011 opened seven new hyper stores. Specifically, three new stores opened in Greece, one in Cyprus and three in Bulgaria that they are expected to contribute to the group’s future growth.  

 The gross margin for the Group was 53,21% from  54,09% the previous financial year effected significantly by the management’s strategic decision not to increase prices despite the VAT increase in Greece. The decline of the Gross Margin was smaller than the management’s estimate for the financial year 2010/2011 as there were parameters such as the stronger than expected currency and the lower transport cost that had a positive impact. Consolidated EBITDA decreased by 6,62% y-o-y to €135,15m from €144,73m at the previous financial year.  Τhe Group’s profits after taxes amounted to € 94,60 m from € 79,24m implying an increase of 19,39%y-o-y.

 The Company’s management will propose among other issues at the Annual General Meeting of the shareholders which will be held on November  3^rd, 2011 the decrease of the company’s share capital; decreasing the shares nominal value by the amount of €0,17 per share and the equal capital return in cash to the shareholders.  

Despite the challenging macroeconomic environment the Group has planned the opening of 6 new stores for the current financial year 2011/2012 of which three will be in Greece and three in Bulgaria. In July 2011 a new owned store in Burgas, Bulgaria of total surface 18.000sqm. started its operations as well as in September a new rented store in Elefsina (Greece).

 By December 2011 two more stores will open in Greece, one rented store in Spata (Attica) of total surface 9.000sqm and one owned in Giannitsa of total surface 9.000sqm. Until the end of the current financial year (30.06.2012) two more stores will open in Bulgaria one owned store in Russe of total surface 12.000sqm and one more owned store in Sofia of total surface 12.000sqm.

 Today, the Group operates a network of 54 stores of which 45 are in Greece, 3 in Cyprus and 6 in Bulgaria.