The global economic crisis affected the Group's performance. Due to the ongoing particularly intensive economic recession during the first quarter and despite the fact that the company maintained its clientele, but with decreased orders, it faced a drop in its turnover and results. A respective reduction was also noted in the rest of denim production industries in Europe.
The Group's turnover during the 1st quarter of 2009 amounted to 14.4 mln euro as compared to 21.5 mln euro in the relative last year period, showing a 33% reduction. The parent company's turnover amounted to 11 mln euro as compared to 19 mln euro in the relative last year period, for the aforementioned reasons. More than 75% of the parent company's turnover comes from exports.
The gross profit margin of the group amounted to euro 0.4 mln, in comparison to euro 2.2 mln in the relevant last year period. The gross profit margin of the parent company amounted to euro 0.02 mln, while in the 1st quarter of 2008 it was euro 1.9 mln.
Group's consolidated net results before taxes, interest and depreciation (EBITDA) amounted to euro -1.592 thous, from euro 846 thous in the relative last year period, affected mainly from the parent company's EBITDA which is reduced in comparison to the previous year and amounted in the 1st quarter of 2009 to euro -2.117 thous from euro 391 thous of the relative last year period. The parent company's EBITDA was negatively affected by exceptional other expenses amounting to about euro 1.200 thous, due staff leaving in context with the restructuring and exceptional cost of transferring the Sindos Spinning Mill to its subsidiary Kilkis Spinning Mills S.A.
The Group's financial results before taxes amounted to euro -3.9 mln from euro -1.7 mln of the relevant last year period. The parent company's financial results before taxes amounted to euro -3.68 mln from euro -1.26 mln of the relevant last year period, mainly attributed to the exceptional, one-off, aforementioned expenses.
The consolidated net results after taxes amounted to euro -3.9 mln as compared to euro -1.5 mln of the relevant period of 2008, while the parent company's net results after taxes amounted to euro -3.7 mln as compared to euro -1 mln of the relevant last year period.
In the first quarter of 2009, the company intensified its efforts for the reduction of expenses and production cost, while additional drastic measures were taken for the improvement of its cash flow.
HELLENIC FABRICS S.A. continues its strategy in manufacturing and promoting new types of denim fabrics, with innovative characteristics.
At the same time, Management already applies a program for the improvement of its results, which consists of strict expense control, reduction of labor cost and decrease in working capital needs, as well as further actions for increase of sales and efficiency of all the other departments.