- Group net profit from continuing operations at EUR 183.8 million, up 165%
- Proposal of EUR 0.20 constructive dividend
Marfin Investment Group (MIG) announced today its financial results for the fiscal year 2008. The Group reported robust profitability in the respective period, with Group net profit from continuing operations at EUR 183.8 million versus EUR 69.4 million in 2007, showing an increase of 165%.
Group net profit after tax and minority interest rose to EUR 112.6 million versus EUR 330.1 million in 2007. When the 2007 figures are adjusted for exceptional income of EUR 267.8 million arising from the sale of banking assets, the increase of net profit would stand at 80.7%.
Earnings before interest, tax and depreciation (EBITDA) rose to EUR 326.8 million versus EUR 34.1 million in 2007 and EUR 192 million pro-forma for 2007. Shareholders' equity reached EUR 4.5 billion and liquidity EUR 1.5 billion, representing 19.8% of the Group's total assets. Despite the adverse market conditions, net asset value per share stood at EUR 5.45 as of 31 December 2008. These results were achieved in a significantly deteriorating macroeconomic environment especially in the last months of 2008. The Company's Board of Directors decided to propose to the General Assembly of MIG the distribution of euro 0.20 constructive dividend. Shareholders will be offered the option of reinvesting the constructive dividend in the form of MIG shares.
Commenting on the results, Mr Andreas Vgenopoulos, Marfin Investment Group's Executive Vice-Chairman stated:
"2008 was a year marked by an unprecedented and mounting market downturn. The ripple-effects of the economic slowdown are already visible in the real economy. Our Group has not been immune from the adverse market conditions. However, through a focused strategy and a disciplined and defensive approach already in place since the end of 2007, we have created a well-diversified portfolio of leading investments in defensive sectors and have preserved liquidity, thus managing to insulate, to the extent possible, the Group from external shocks. Our key advantage is our sufficient cash levels that can be regarded not only as a 'safety net' for a potential further deterioration in market conditions, but also as a pool for capitalizing on opportunities that might arise. The acquisition of the assets of OLYMPIC constitutes such a value enhancing opportunity.
For 2009, emphasis is given on operational and organizational initiatives that will facilitate the long-term value creation for our shareholders and stakeholders. The main objective of such optimization initiatives, both at a Group and at the portfolio companies' level, is cost containment, preservation of our revenue base and increase of market shares in the sectors we operate. Our strategy will be implemented under the prism of social responsibility. Several initiatives from both MIG parent and our portfolio companies, such as the freezing or even the reduction of prices in certain products and services, have been already embraced by the end-customer. In addition, we continue to further expand into new markets resulting to the enlargement of our customer base which enjoys our unique products and services.
Finally, I would like to note that we have carefully reviewed our dividend policy taking into consideration the preservation of our high liquidity in order to meet the needs of our portfolio and be able to pursue the opportunities that might arise in the near future, while at the same time rewarding our loyal shareholders. In this context, we are recommending to the AGM the distribution of a constructive dividend of euro 0.20 per share".