In the first nine months of 2007, Neochimiki L.V. Lavrentiadis S.A. ('Neochimiki"or the "Group") turnover amounted to EUR 285.4 mil., up 85% from the corresponding period of last year, while consolidated EBITDA reached EUR 58,1 mil, up 201% versus last year.
Net income from continued operations stood at EUR 31.9 mil., up 279% versus last year. Net income including discontinued operations totaled EUR 112.6 mil., up 67% y-o-y.
For the third quarter, the Group's turnover reached EUR 114.1 mil. (+98% y-o-y), EBITDA reached EUR 27.3 mil. (+362% y-o-y) and consolidated net income stood at EUR 17.8 mil. (+113% y-o-y).
Major developments
1. Acquisition of IHP Prahovo During October Neochimiki signed a Share Purchase Agreement with the Serbian Privatisation Agency for the acquisition of a 99.06% stake in IHP Prahovo, the owner of an 80% stake in each of four companies involved in the (i) production of fertilizers, (ii) production of inorganic salt, (iii) construction and maintenance of mechanical equipment and (iv) transfer, charge / discharge, storage and packaging of products. At the same time Neochimiki purchased the 20% minority stake in each of these companies not already owned by IHP Prahovo. The purchase price amounted to EUR 5 mil. and the entire investment program is expected to reach EUR 20 mil.
2. EUR 150 mil. revolving credit facilityIn addition, the Group signed a contract with a consortium of banks-lenders, for the provision of a 5-year standby revolving credit facility, for an amount up to EUR 150 mil, in order to finance potential acquisitions and other general financial needs.
3. Financial guidance for 2007 and 2008 Based on the group's 9-month results and its operating growth rate, the Group provides revised financial guidance for 2007 and its financial guidance for 2008:
2007: Turnover EUR 500 mil., EBITDA of EUR 75 mil. (from EUR 67 mil. previously) and earnings after tax and minority rights of EUR 44 mil. (from EUR 41 mil. previously). The latter excludes EUR 80 mil. of gains from the disposal of Neochimiki's stake in Lamda Detergent earlier this year.
2008: Turnover: of EUR 700 mil., EBITDA: EUR 95 mil. and earnings after tax and minority rights: EUR 58 mil.
The above projections are only management estimates and are only an indication of the group's future operational performance. The management of Neochimiki is monitoring closely the trends and developments in the markets it operates in, as well as the general macroeconomic environment of the countries in which it is active and any other circumstances that may materially impact its financial objectives as they are presented herein and will inform the investment community in a timely manner, should any such case arise, as it has systematically been doing so far.