The management of Elmec Sport SA considers the consolidated results of the Group for the 1st semester of 2007 as being extremely satisfactory, after taking into account the loss in the turnover due to the termination of the distribution of Nike products in Greece and Cyprus in June 2006, the value of which had been included in the results of last year's corresponding period.
The Company, after the change in management, performed a substantial restatement of its last years' financial statements, adopting a more conservative application of the International Financial Reporting Standards, mainly on the issues of goodwill, inventory valuation and intra-group transactions. These changes affected negatively the results of the period 1/1 - 30/6/2007 by 800 thousand euros approximately, due to the change in the computation method of the of intra-group earnings on the inventories of the Group, while this change had more intense negative effect on the consolidated results of the current period (1/1 - 30/6/2007), and thus by 1,7 million euros approximately.
In detail, the consolidated sales for the 1st semester of 2007 remained roughly at the same levels with the corresponding last year's period, reaching 90 million euros against 91 million euros for last year's corresponding period, while the net profits of the Group after taxes reached 2,5 million euros against 2,7 million euros last year.
A great contribution in the results of the 1st semester of 2007 had the subsidiary companies of Elmec Sport SA, and mainly Elmec Romania SRL, which exceeded management expectations achieving sales of 18 mn euros, i.e. a rise of 57% from last year, while the EBITDA of this company for the same period exceeded 3 million euros against 0,52 million euros last year. Substantial contribution in the results of the 1st semester of 2007 had also Attica Department Stores SA, which presented a 33% increase in sales and doubled their EBITDA.
It is worth mentioning that the operating expenses of the parent company fell by 1,6 million euros, i.e. 11,4%, thus presenting the effectiveness of the management in holding down and restricting expenses.
The results of the first semester, the up-to-date course of the Group, as well as the initiation of the distribution of Converse products in Greece and Cyprus, during the second semester of the current year, make the new management of the Company believe that the objectives of (a) a consolidated turnover of 210 million euros for 2007 and (b) a consolidated EBITDA of 22 million euros will be achieved.