Both the profitability and the turnover of EYATH SA have witnessed a tremendous growth over the first quarter of the current financial year.
In particular, pre-tax profits amounted to EUR 7.519 million in the first quarter of 2009, rising to 65.65% compared to the corresponding period last year, while profits after tax amounted to EUR 5.791 million, that is, an increase of 63.68%. Gross profit has increased by 24.56% compared to the first quarter of 2008 and stood at EUR 10.006 million, with the earnings per share amounting to EUR 0.1595, namely, an increase of 63.68%.
Meanwhile, sales of the listed company of Northern Greece stood at EUR 20.325 million, having increased by 10.38% compared to last year. Cash holdings increased by 8.99% and rose to EUR 15.195 million.
These financial performances were achieved despite the freezes on tariffs and their reduction for 400,000 customers and for about 5,000 families with many children which is in effect since 1/1/2009.
It should be noted that EYATH SA records now the 17th consecutive quarter of increased sales and profitability and the fifth consecutive quarter of reduction in costs, while it has broadened at the same time its clientele. The strengthening of profitability results from the rationalization and the efficient reduction in costs and no longer from the containment of costs. Thus the cost of sales declined to EUR 10.3 million, namely, a decrease of 0.6%, while at the same time administrative operating costs and the cost of disposal decreased to 37.25%.
Indeed, the period 2004-2009 shows an impressive reversal and a rapid improvement of financial results, since during the corresponding first quarter of 2004 EYATH made a loss. Specifically, the turnover in the first quarter of 2009 amounted to EUR 20.325 million compared to EUR 4.572 million in the first quarter of 2004, gross profit stood at EUR 10.006 million, from losses of EUR 1.432 million in the first quarter of 2004, while pre-tax profits reached EUR 7.811 million from losses of EUR 6.041 million in the corresponding period of 2004. Accordingly, the profits after tax amounted to EUR 5.791 million compared to EUR 4.726 million of losses in 2004.
TARIFF REDUCTION
In this context, and given the reorganization of EYATH, the company?s Administration has decided to reduce the water supply tariff for its residential consumers (households). Specifically, as announced on 18 November 2008, EYATH will review in 2009 the implementation of the tariff approved in 2006 for the year 2010. The Chairman and Managing Director, George Skodras, after taking into consideration the above, proposed - and the Board of Directors (the workers' representatives representing the minority) decided by majority vote - to reduce by 4% the company's water supply tariff in the third four-month period of 2009.
Specifically, the proposed regulation involves a reduction of 4% in water supply tariff in the third four-month period of 2009 for the first three classes of consumers (low- and middle- income households). The regulation covers 88% of the company's customers, that is, approximately 400,000 residential customers (households) in the urban area of Thessaloniki, while it is not expected to substantially affect its financial performance.
By the said decision EYATH is perfectly in line with the government's policy and in particular with the policy of the Ministries of Economy & Finance and Development to assist low and middle incomers over the current period of international financial crisis. The regulation is to be approved by the shareholders at the ordinary general meeting on 26 June 2009. Simultaneous to the above developments, the Administration guarantees the strong profitability of the company and the financing of its investment program by using the same resources without delay or restrictions. EYATH expects additional revenue from the further expansion of its area of activity and the new activities it steadily develops. The policy of cost containment and cost reduction vigorously continues.
MEMORANDUM OF COOPERATION
Moreover, a memorandum of cooperation is signed today in Volos between EDEYA (Hellenic Union of Municipal Enterprises for Water Supply and Sewerage) and EYATH regarding a framework of joint action - given the national and international trends in research and technological development - which includes, among others, the cooperation:
- in the fields of quality control of drinking water, waste management and particularly the processing and utilization of waste water by reusing the effluences of treatment facilities of urban waste water and by reusing biosolids.
- in the implementation of the Framework Directive 2000/60/EC and generally in the cooperation in the implementation of the European legislation concerning the sector of water supply - sewerage.
- in actions on water resources management and environmental protection
- in the joint action concerning the Green Design and in particular the Design of the Analysis of the product?s life cycle and the maximization of the materials recyclability.
- in supplies through actions for joint supplies with specifications that would meet all the needs of water supply ? sewerage companies,
- in joint action so that DEI (Public Power Corporation) cuts down the bill of EYATH SA and of the DEYA (Municipal Enterprises for Water Supply and Sewerage),
- on activities, such as renewable energy sources , optical fibres, wireless networks, bottled water and generally in any innovative action through research and studies,
- between executives of EYATH and the committees of EDEYA and European research centres on issues of water resources and environment, in research activities through competitive research programs of the EU,
- in the Research Centre of EYATH that is being created (and possibly participation).
Promoting the cooperation between the parties is considered an important productive factor and a tool to strengthen the effectiveness and the sustainable development of water supply - sewerage companies.