Continuance of the developmental targets Emphasis on the management of the working capital and costs
The economic results of the A. Semester (July '08 - December '08) of the Electroniki Group are influenced from the world economic agitation that has also influenced the economy of our country. In the announcement of the results of the A? quarter the administration of the Group had referred to the likely reduction of sales for the next quarters, because of the general economic situation.
Having forecasted this possibility it was particularly careful in the opening of new shops in Greece, it maintained high fluidity and it continues to be deprived of banking lending.
More specifically, the consolidated Turnover was shaped in 110,36 millions of Euros, presenting a decrease of 7,57% in comparison with the previous half-year period that was 119,41 millions of Euros. The consolidated Earnings Before Interest, Taxes and Depreciations (EBITDA) for the 1st half-year period of use amounted in 5,30 millions of Euros, from 10,36 millions of Euros in the corresponding last year's period. The consolidated Profits Before Taxes for the 1st half-year period of use amounted in 1,12 mill. of Euros, against 6,64 mill. of Euros in the corresponding last year's period. The consolidated Profits After Taxes for the 1st half-year period of use amounted in 504,36 thousands of Euros, against 4,92 mill. of Euros that were of the last year's period. In level of expenses, the expenses of first half-year period of use were less from those of the last year?s corresponding period. Concretely, the mother company accomplished to decrease the expenses by 1,1 mill. of Euros, while in level of Group this reduction amounted in 1,5 mill. of Euros.
It is mentioned that the company follows conservative management and is not exposed in likely due requirements.
This fact allows the management to maintain and in the long term to strengthen its place in the market. The recently renewed corporate identity, the powerful presence of existing shops with a great range of modern products in combination with the effective administration constitute important points of reference for the company.
The objective of the company is compact and clearly defined: To remain an important player in the wider market of S.E. Europe and to maintain as the No 1 Greek Chain of electric and electronic appliances in Greece.
Regarding an increase of the attracting of customers in the existing network of 67 shops is planned with the permanent renewal of the product mixture and the renovation of older shops. Despite the withholding of expenses, the advertising promotion is continuing without any reduction of rhythm. The purchasing capacity of cliental base is permanently measured and while its decrease is real, the company, from the beginning of the year, negotiates with the supplying companies for new agreements with better terms.
The most equitable management of inventories remains into the targets of the company, but also the indicators of days of creditors and inventories remain healthy.
Regarding the new investment plans, they will be continued with smoother rhythms. It is mentioned that the growth will be financed by the existing equity. The third shop in Serbia with an area of 1.860 m² and the third also shop in Cyprus with an area of 1.300 m² were completed and they are expected to begin activity within March and April respectively. The shops in Cyprus are henceforth profitable.