ΕΛΒΑΛ Α.Ε.
Financial results for the nine-month period of 2009
ELVAL group announces its financial results for the nine-month period of 2009, based on the International Financial Reporting Standards.
The recession that marked the third quarter of 2009 continued to prevail in the markets in which ELVAL Group operates, maintaining demand and prices of aluminium products at low levels and negatively affecting the volumes of sales in the sector. The price of primary aluminium remained low, while the Euro to US Dollar exchange rate continued to make the Group's business outside the European markets extremely difficult. In addition, it is noted that the third quarter is affected by August which, traditionally, is a month of reduced productivity and high maintenance costs.
Within this context, the consolidated turnover during the nine-month period of 2009 reached euro 496 million against euro 671.6 million in the same period last year, marking a 26.1% decrease. This decline is attributed both to the broader downward trend in demand and the reduction of aluminium prices compared to the nine-month period of 2008.
The Group's gross profits, during the nine-month period of 2009, reached euro 35 million against euro 49.2 million in the same period last year, marking a 28.9% decrease, while the gross profit margin presented a marginal decline reflecting 7% of the consolidated turnover against 7.3% in the nine-month period of 2008. Given the decrease in turnover and consequently in the Group's gross profit, the development of the other financial results followed a similar course.
The consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) presented a 35% decline, reaching euro 29.3 million against euro 45.1 million in the nine-month period of 2008 and, last, the consolidated earnings before taxes, during the nine-month period of 2009, presented a loss of euro 9.2 million against a profit of euro 2.6 million in the respective period last year. It is noted that the reduction of debt service cost had a positive impact on financial expenses reaching euro 8.2 million in the nine-month period of 2009, decreased by euro 6 million compared to the respective period last year.
Finally, the Group's results after tax and minority interests presented a loss of euro 7.4 million against euro 133 thousand in the respective period last year, i.e. a loss of euro 0.060 per share against a loss of euro 0.001 per share in the nine-month period of 2008.
With respect to the Group's liquidity and leverage, the positive picture formed during the first two quarters of the current fiscal year remained the same also in the third quarter. The Group's long-term debt was reduced by euro 46.2 million compared to the end of 2008 and reached euro 115.8 million, while the total net debt was reduced by euro 49.4 million compared to the Balance Sheet of December 31, 2008, reaching euro 229.5 million. Meanwhile, the Group's operating cash flows reached, during the nine-month period of 2009, euro 67.2 million.
The implementation of the investment program continued without interruption during the third quarter of the fiscal year and the Group's total relevant costs from the beginning of the year reached euro 38 million, euro 16.8 million of which involve the parent company, ELVAL.
Meanwhile, as to the operating effectiveness, the priorities which have been set in order to handle the adverse financial circumstances remain in full force and include maintenance of market shares, increase of productivity and improvement of liquidity. To this end, the Group carried out during the current fiscal year a series of changes to its structure, while strengthening its bonds with powerful partners abroad and aiming to materially expand outside Greek borders.
Note: ELVAL Group's financial results for 2009 are published in IMERISIA newspaper on November 26, 2009 and are also posted in the company's website at www.elval.gr and in the Athens Stock Exchange website, www.athex.gr.
The recession that marked the third quarter of 2009 continued to prevail in the markets in which ELVAL Group operates, maintaining demand and prices of aluminium products at low levels and negatively affecting the volumes of sales in the sector. The price of primary aluminium remained low, while the Euro to US Dollar exchange rate continued to make the Group's business outside the European markets extremely difficult. In addition, it is noted that the third quarter is affected by August which, traditionally, is a month of reduced productivity and high maintenance costs.
Within this context, the consolidated turnover during the nine-month period of 2009 reached euro 496 million against euro 671.6 million in the same period last year, marking a 26.1% decrease. This decline is attributed both to the broader downward trend in demand and the reduction of aluminium prices compared to the nine-month period of 2008.
The Group's gross profits, during the nine-month period of 2009, reached euro 35 million against euro 49.2 million in the same period last year, marking a 28.9% decrease, while the gross profit margin presented a marginal decline reflecting 7% of the consolidated turnover against 7.3% in the nine-month period of 2008. Given the decrease in turnover and consequently in the Group's gross profit, the development of the other financial results followed a similar course.
The consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) presented a 35% decline, reaching euro 29.3 million against euro 45.1 million in the nine-month period of 2008 and, last, the consolidated earnings before taxes, during the nine-month period of 2009, presented a loss of euro 9.2 million against a profit of euro 2.6 million in the respective period last year. It is noted that the reduction of debt service cost had a positive impact on financial expenses reaching euro 8.2 million in the nine-month period of 2009, decreased by euro 6 million compared to the respective period last year.
Finally, the Group's results after tax and minority interests presented a loss of euro 7.4 million against euro 133 thousand in the respective period last year, i.e. a loss of euro 0.060 per share against a loss of euro 0.001 per share in the nine-month period of 2008.
With respect to the Group's liquidity and leverage, the positive picture formed during the first two quarters of the current fiscal year remained the same also in the third quarter. The Group's long-term debt was reduced by euro 46.2 million compared to the end of 2008 and reached euro 115.8 million, while the total net debt was reduced by euro 49.4 million compared to the Balance Sheet of December 31, 2008, reaching euro 229.5 million. Meanwhile, the Group's operating cash flows reached, during the nine-month period of 2009, euro 67.2 million.
The implementation of the investment program continued without interruption during the third quarter of the fiscal year and the Group's total relevant costs from the beginning of the year reached euro 38 million, euro 16.8 million of which involve the parent company, ELVAL.
Meanwhile, as to the operating effectiveness, the priorities which have been set in order to handle the adverse financial circumstances remain in full force and include maintenance of market shares, increase of productivity and improvement of liquidity. To this end, the Group carried out during the current fiscal year a series of changes to its structure, while strengthening its bonds with powerful partners abroad and aiming to materially expand outside Greek borders.
Note: ELVAL Group's financial results for 2009 are published in IMERISIA newspaper on November 26, 2009 and are also posted in the company's website at www.elval.gr and in the Athens Stock Exchange website, www.athex.gr.