Commentary on the annual financial results for the financial year 2024
ANNOUNCEMENT
Commentary on the annual financial results for the financial year 2024
During the fiscal year 2024, commercial enterprises in Greece were called upon to manage a particularly demanding and unstable economic environment. The increase in operating costs, as a result of high energy prices and inflationary pressures, significantly weighed on their operational efficiency. At the same time, consumer spending showed containment trends, focusing mainly on necessities. At the same time, borrowing costs remained at high levels.
A significant milestone for the Company was the conclusion of the sale and leaseback agreement for the property located in Elliniko. This achievement was marked by the full settlement of the agreement, resulting in the transfer of complete ownership of the property to the Company.
During the current fiscal year, the Company experienced a 19% decline in turnover compared to 2023. Specifically, the Company's sales totaled €17,417 thousand, compared to € 21,599 thousand. of the previous use. The following contributed significantly to this decrease in sales:
- the decline in the market for cordless phones
- the intensifying competition from low-cost products
- the project contracts with the Greek State, which were implemented during the years 2022, 2023 and completed in the first months of 2024, without the further development of new projects
- the continuous delays in the receipt of goods by the Company's main supplier - due to the change of its operating systems - resulting in the cancellation of agreed customer orders.
Gross profit amounted to € 3,161 thousand. compared to € 4,237 thousand. of the previous fiscal year, recording a decrease of 25%, which is mainly due to:
- increases in the cost of purchasing goods and
- the formulation of the pricing policy towards customers, with the aim of dealing with great competition.
Administrative operating expenses remained at the same level, while disposal operating expenses amounted to € 2,429 thousand. compared to € 2,641 thousand. of the previous year, recording a decrease of € 212 thousand. i.e. 8%. The decrease in financial costs is due to the reduction of guarantees to suppliers, as well as the reduced use of short-term financing, through factoring.
The decrease in ancillary revenues was significant, due to the reduced participation of the main supplier in the costs of promoting the Company's goods.
The Company's pre-tax results amounted to a loss of €721 thousand against profits of €473 thousand of the previous use.
Earnings before taxes, financing, investment results and total depreciation and amortization (EBITDA) amounted to €35 thousand. compared to €1,274 thousand of the previous use.
The Company, despite the significant decline in its figures in the current year, maintained its liquidity at satisfactory levels, as the loan/equity ratio decreased to 0,19 compared to the previous year. The Company's bank lending is primarily associated with factoring arrangements for large customers, the utilization of a mutual bank account secured by cheques, and a bond loan with a balance of €444 thousand as of 31/12/2024, scheduled for repayment within the current fiscal year 2025.
Formation of basic economic parameters
Amounts in thousands € |
31.12.2024 |
31.12.2023 |
Turnover |
17.417 |
21.599 |
Gross profit |
3.161 |
4.237 |
Gross profit (%) |
18,2% |
19,6% |
Results before taxes, financing investment outcomes, and depreciation (EBITDA) |
35 |
1.274 |
Pre-tax results |
-721 |
473 |
Earnings after taxes |
-678 |
486 |
Loan liabilities / Equity |
0,19 |
0,39 |
Equity / Total liabilities |
1,39 |
0,97 |
General Liquidity |
1,91 |
1,75 |
Immediate Liquidity |
0,91 |
1,09 |
Significant Events of the First Quarter of 2025
On April 8, 2025, in compliance with Law 3556/2007, the Company informed the investment community of the following:
On April 7, 2025, CD Media SOCIETAS EUROPAEA OF TRADING AND SALE OF SOFTWARE AND MULTIMEDIA OPTICAL SYSTEMS S.E. acquired 2,263,989 shares of INTERTEK S.A., representing 26.87% of its total voting shares, from AMOIRIDIS SAVIDIS THERMAL CLIMATE ANONYMOUS COMMERCIAL COMPANY.
As a result, the stake of "CD MEDIA S.E." in INTERTEK S.A. has increased to 56.91%. The purchasing entity is controlled by Mr. Spyros Giamas under the provisions of Law 3556/2007. Consequently, "CD Media S.E." is obligated to submit a mandatory public tender offer to all INTERTEK S.A. shareholders, in line with Law 3461/2006, having acquired a total of 4,794,221 shares, which constitute 56.91% of the total voting rights of the Company.