CON. CARDASSILARIS & SONS S.A. Group announced its financial results for the first quarter of 2007 according to International Financial Reporting Standards.
Gradual turnaround illustrate the Q1 2007 results of the Group after a negative FY 2006 mainly attributed to the unexpected decline in Cardico's raw material prices as well as to the strike mobilizations that took place in the Piraeus Port Authority during the last two months of 2006. These events had an adverse effect both οn the group's turnover as well as its results of FY 2006. Cardico, in order to preserve its reliability and image to his suppliers, honored all contracts that had signed with them at the cost of its financial performance in FY 2006, but has profited today by being at a privileged position as the preferred supplier against its competitors.
The signs of recovery are evident in Q1 of 2007. Group consolidated turnover reached Euro 31.4 mil. at Q1 2007 as opposed to Euro 31.9 mil. for the respective period last year marking an increase of 31.9%, which is explained by the drop of raw material prices and the inability to supply regularly the group, especially in the month of January, as a result of the strike mobilizations that took place in the Piraeus Port Authority. On the other hand, gross profit for the Group amounted to Euro 3.4 mil. as opposed to Euro 2.46 mil. in the respective period last year, while gross profit margin for the group in Q1 2007 stood at 10.91% of consolidated sales versus 5.35% the respective period last year. Substantial contribution to this turnaround in Q1 2007 had the strategic decision to expand the industrial activity of the group and deploy to new contracts with large supermarket chains and industries where the group can realize satisfactory margins.
Significant increase of 322.3% marked the group's earnings before interest, tax and depreciation (EBITDA) in Q1 of 2007, which stood at Euro 1.422 thou. versus Euro 336 thou. in the respective period last year. Accordingly earnings before interest and tax (EBIT) amounted to Euro 1.0 mil. and earnings before tax amounted to Euro 801 thou. versus Euro 59 thou. in Q1 of 2006. Finally, net results after taxes and minorities marked turnaround as from losses of Euro 331 thou. in Q1 2006 turned to profit of Euro 599.5 thou. in Q1 2007.
With the opportunity of the Q1 2007 financial results release, the group's management estimates that the turnaround from the unfavorable FY 2006 has been the result of a series of strategic decisions undertaken by the management and expects to continue throughout the year and especially over the 2nd half of 2007.
Cardico group aims at enhancing further the industrial activity both in the domestic as well the international markets. It is within this framework that the group intends to expand its contracts wit supermarket chains as well as other industries. Also, the management decided to expand its operations into the dried fruits and nuts market in addition to the almond kernel, allowing this way to diversify any potential risk from unexpected fluctuations in the prices if raw materials, and hence guaranteeing the group's results.
Q1 2007 Data and Information and the IR RELEASE have been posted on the company's website www.cardico.com.