DOUBLE DIGIT GROWTH IN GROUP'S PROFITABILITY
GROUP'S RESULTS AT A GLANCE
-INCREASE BY 0,2% IN CONSOLIDATED SALES
-INCREASE BY 16,2% IN CONSOLIDATED EBITDA
-INCREASE BY 10,4% IN NET PROFITABILITY (AFTER TAXES & MINORITY RIGHTS)
The improvement of operating profitability and profit margins, continued to be considered as Group?s strategic objective also in 9M 2009.In particular, Group's sales amounted to euro 37,9mil from euro 37,8mil, presenting an increase of 0, 2% from the corresponding period of 2008.
Operational expenses before depreciations [R&D, Administrative and Distribution) of the Group amounted to euro 16,3mil in 9M 2009 vs euro 18,2mil, in the respective period of 2008, reduced by euro 1,9mil, or 10, 2%. For comparison reason, if we subtract from 9M 2009, the administrative and distribution expenses of Pharmacon North Greece-the company has been acquired by Korres after 9M 2008- and of District Two, as well as from 9M 2008, District Two expenses, being consolidated for 3 months, Group?s operational expenses reached euro 14,5mil., from euro 17,6mil in 9M 2008, reduced by euro 3,1mil or 17,5%. The significant decrease in the expenses is the result of the management effort to reduce operational cost.
Earnings before interests, taxes, depreciations and amortization (EBITDA) reached euro 7,9mil in 9M 2009 from euro 6,8mil in the corresponding period of 2008, enhanced by euro 1,1mil or 16, 2%, as a result of the reduced operational expenses. Thus, EBITDA margin increased by 2,9pp and came up 20, 7% from 17, 9% in 9M 2008.
Earnings after taxes and minority rights amounted to euro 3,4mil in 9M 2009 vs euro 3,1mil in the respective period of 2008, enhanced by 10, 4% due to the increase in the operational profitability.
The operational cash flow turned positive, amounting to euro 5,5mil from -euro 2,6mil in the previous 9M 2008, as a result of the management effort to manage working capital in a more efficient way.
Korres Group, following its major strategic components, such as the launching of new products, the enhancement of its brand awareness as well as the concentration of its interest in developed markets, succeeded the following in Q3 2009:
-Dynamic entrance in the anti ageing category in pharmacies in Greece with the new face range 'Oak and Quercetin", based on the Chemistry Nobel awarded discovery of the proteasome, and incorporating for the first time worldwide as a cosmetic product the findings of the research in Proteasome and Ageing.
-Further awareness regarding its products, following brand's distinctions in US as the 'the fastest growing brand in Sephora network in 2009", through the agreement that it signed with American Delta Air Lines-the largest airline company worldwide-for the offer of face care products to the Business Elite Class clients. Thus the Group achieves significant opportunities to further communicate its brand to new customers.
-The sign of product licensing agreement with Johnson & Johnson concerning the production and distribution/promotion of Group's products in North America, exploiting further growth opportunities in the particular market.
In the future, research and development of new products and innovative production methods, such as herbs extractions, will continue to be considered as growth drivers of the market shares in Greece. In the international markets, and especially in the other focus markets such as Germany, France and Spain, the development will come from a combination of expanding to new points of sales such as pharmacies and selective points that have enhanced the category of natural brands and as well as of operating new Korres stores.
FOR FURTHER INFO: Athina Lagou, Korres Head of Investor Relations & Shareholder Services, T: 22620 54651, E-mail: athina.lagou@korres.com.