Sales euro 172.24m, Net Income euro 31.93m
On the occasion of announcement of the financial results for the 9m of 2008, MICHANIKI Group states the results main points:
On a Group level:
- The consolidated turnover for the first 9 months of 2008 reached euro 172.24 million compared to euro 171.66 million for the corresponding period of 2007, increased by 0.34%.
- The consolidated earnings before interest, taxes, depreciation and amortization (EBITDΑ) amounted to euro 73.16 million compared to euro 79.67 million for the corresponding period of 2007, decreased by 8.18%.
- Earnings before taxes amounted to euro 56.42 million compared to euro 74.12 million for the corresponding period of 2007, decreased by 23.87%.
- The consolidated net earnings after taxes, BoD fees, and tax-audit differences decreased by 29.74% and amounted to euro 39.17 million, compared to euro 55.75 million for the corresponding period of 2007.
- The consolidated net earnings, after taxes, BoD fees and tax audit differences, and after subtracting minority rights, decreased by 37.59% and amounted to euro 31.93 million compared to euro 51.16 million for the corresponding period of 2007.
At a Parent company level:
- The turnover amounted to euro 136.15 million compared to euro 103.79 million, an increase of 31.18% on a yearly basis;
- Earnings before interest, taxes, depreciation and amortization (EBITDΑ) amounted to euro 22.61 million compared to euro 19.53 million over the respective period of 2007, an increase of 15.77%;
- Earnings before taxes amounted to euro 11.0 million compared to euro 23.77 million for the corresponding period of 2007, decreased by 53.73%.
- The net earnings after taxes, BoD fees, and tax-audit differences amounted to euro 6.27 million compared to euro 18.47 million for the corresponding period of 2007, decreased by 66.04%.
In 9m 2008, Consolidated Sales amounted to euro 172.23 million compared to euro 171.66 million for the corresponding period of 2007, an increase by 0.34%, while Gross Profit amounted to euro 37.81 million compared to euro 34.71 million, an increase of 8.93%. Gross Profit margin increased for the third straight year, reaching to 21.95% from 20.22% of last year's 9m result. The Group shows in three year duration the ability to sustain solid profitable gross margin (an average of 22% p.a.), strong sales and good quality of operating profitability.
In Construction, the Company is currently constructing 21 infrastructure projects in Greece, and will take part in the State bids pertaining to projects where the financing falls within the 4th European Community Support Framework (euro 14 bil.), aiming at a steadily increasing profitability. Non-executed contracts of MICHANIKI SA and its subsidiary THOLOS SΑ at the end of the 9th month amounted to euro 285.49 million.
The construction of the 166.000 sqm building complex "Megas Alexandros" in Moscow continues on a fast pace; in Kiev, the construction of the 53,000 sqm ?Artemis? complex is near to completion, located in the city's eastern suburbs; and the construction of the 15.500 sqm project of ?Hera?, the residential compound has started in Moscow's northwest suburb of Himki.
The Group continues to invest during the 3rd Quarter of 2008 in order to expand its activities and estates, mainly abroad. The amount of euro 16.09 million was invested in the Egyptian and Bulgarian real estate market, bringing the Group?s total investment to euro 146.73 million versus euro 118.77 million of the corresponding period of 2007, namely an increase of 23.78%. Note: the amount of euro 32.71 million that concerns the real estate of the affiliate company BALKAN REAL ESTATE has been subtracted from the Property Investment account to the Owned assets for sale account due to the agreement of sale of the property.
The current Net Asset Value of the foreign investment reached the amount of euro 515.59 million versus euro 513.03 million of the 3rd quarter of 2007, an increase of 0.50%. In comparison with the 2nd quarter of 2008, the effect of the financial crisis has devalued the portfolio by only 0.59%, thus euro 3.07 million.
Today, the global economy is in a moderate recession that will be mind in terms of the decline in growth and lengthy in terms of its duration. The management of Michaniki S.A. will continue its long term investment plan and strategy, focusing in the increment of the Greek non executed portfolio/contracts, in the continuation of the in progress construction projects locally and internationally taking advantage of the decrease of the prices in expendable supplies (thus stimulating Cash flows), and proceed with caution on the management of capital reserves. The publication and analytical information with regards to the company's financial results and investment program in the foreign countries can be found in the Company's website www.michaniki.gr, under "Group Presentation".