SIGNIFICANT INCREASE IN SALES BY 52, 7% AND BY 29, 4% OF NET AFTER MINORITY RIGHTS PROFITABILITY OF KORRES NATURAL PRODUCTS GROUP OF COMPANIES
- Increase by 52, 7% of consolidated sales to euro 37,8m in 9M2008 (from euro 24,8m in 9M 2007)
- Increase by 39, 5% of consolidated EBITDA to euro 6,8m (from euro 4,8m in the respective 9M 2007)
- Earnings after taxes and minority rights (EAT & AM) increased by 29, 4% to euro 3, 1m (from euro 2,4m in 9M 2007)
In the first 9 months of 2008, Korres Natural Products Group of companies' sales, presented an increase of 52, 7%, reaching euro 37,8m from euro 24,8m in the corresponding 9 months 2007. This increase is a result of high growth coming from all product categories. In particular face products, that continued to be the highest contributor to sales (43,6%), enhanced by 65% mainly due to the positive trend of the existing category?s products and the positive performance of the make up products, the men's range and acne skin care. Significant rise of 49,5% is also achieved by the second largest category, the body products, based on the growth of existing products and the new brand Kings & Queens that was launched in the 2nd half of 2007.
The Group continued to it's Int?l presence, increasing the participation of international markets as a percentage of total sales by 16, 8 pp reaching the level of 33, 3% in the first 9 months of 2008 from 16, 5% in the corresponding period of 2007.
Earnings before taxes, interest, depreciation and amortization (EBITDA) amounted to euro 6,8m from euro 4,8m in the 9 months of 2007, increased by 39,5%, και the net earnings after taxes and minority rights reached euro 3,1m from euro 2,4m enhanced by 29,4%, a result of the increased operating profitability. Earnings per share reached 0,26cents from 0,22cents, increasing by 17, 7%.
In relation to Korres stores network, that enhance significantly the brand awareness in the international markets, the Group opened 7 new stores from the beginning of the year, through its local distributors. In particular, Korres stores have been operated, in Paris in France- in Neuchatel, La Chaux de Fonds and Geneva in Swiss-in Varna in Bulgaria and in Vienna in Austria. Furthermore at the same period one more store has been added in US, in Brooklyn New York. Hence, Group?s network counted 23 stores, 21 abroad and 2 in Greece.
The most significant business developments of the Group during this particular period was the acquisition of 50% of its local distributor (District Two) in German and the increase of its participation in Krokus Kozanis Products to 42,8% from 15,6% the exclusive representative and distributor of Krokus or the Greek saffron Kozanis bulk or packaged globally
These particular moves are in line with the major growth axes of the Group, the enhancement of its position in certain developed markets and the exploitation of the attributes of the Greek Flora herbs through co operation with local farmers.
Group's targets remain to be the development and promotion of its products in Greece and abroad. In particular, the major growth drivers will constitute the existing product categories, being enriched by new codes, new product categories and the expansion to new distribution channels. In the export activity that will continue to consist significant growth factor, Group's strategy will focus on developed markets, significant cosmetics consumers such as France, Germany, Spain and US.