In the current uncertain and unfavourable international economic environment, SFAKIANAKIS Group of Companies completed a very difficult semester (1/1-30/6/2009) recording positive results before tax but reduced turnover.
The total car market presented a decrease of 28.1% in the first semester of 2009 compared with the corresponding period of 2008 and Suzuki car registrations amounted to 6,074 units showing a decrease of 28.0% compared with the first semester of 2008, maintaining a market share of 5.3% and occupying the 6th position among car manufacturers in the Greek market.
Correspondingly, the total market of motorcycles recorded a decrease of 30.0% in the first semester of 2009 compared with the corresponding period of 2008 and Suzuki motorcycle registrations amounted to 2,533 units showing a decrease of 45.6% compared with the first semester of 2008.
Company's turnover in the first semester of 2009 amounted to euro 208.9 mil., operating results (EBITDA) amounted to euro 9.9 mil. and profit before tax amounted to euro 700 thousand.
At consolidated level, Group's turnover in the first semester of 2009 amounted to euro 246.5 mil., presenting a decrease of 5.8% over the corresponding period of 2008, operating results (EBITDA) amounted to euro 21.3 mil. and profit before tax amounted to euro 2.1 mil.
Given the economic situation, Company's management has set as target since the beginning of the fiscal year the reduction of the total stocks of the Group companies. The result of this operation was to achieve on 30.06.2009 the total reduction of Group?s inventories by euro 57.6 mil. (euro 19.2 mil. refers to the account of Inventories and euro 38.4 mil. refers to the account of Receivables from orders of goods) which corresponds to a percentage of 27.7% compared to the inventories of 31.12.2008.
Moreover, on 30.06.2009 Liabilities to suppliers at Group level were reduced by euro 19.6 mil. compared to 31.12.2008, while at Company's level the relevant obligations decreased by euro 17.2 mil. compared to 31.12 2008.
The effective implementation of the policy of stock management and reduction policy of receivables and liabilities has resulted in creating positive cash flows from operating activities both for the Group and the Company. Specifically, positive cash flows from operating activities during the first semester of 2009 amounted to euro 61.3 mil. for the Group and at Company level positive cash flows from operating activities during the first semester of 2009 were euro 36.9 mil. compared to the negative cash flows from operating activities of euro 9.4 mil. on 30.06.2008.
Company's management, given the current financial situation, restated the provisions made in the spring of 2008 concerning the financial figures of 2009 by reducing the target for sales at Group level to euro 500 mil., for operating profit (EBITDA) to euro 45 mil. and for profit before tax to 6.0 mil. The respective figures-estimates announced by Company?s Management in 2008 for 2009 were for sales at Group level euro 725 mil., for operating profit (EBITDA) euro 80 mil. and for profit before tax 45.0 mil.
Government's measures-incentives for car market, through the reduction of registration tax, gave a major boost to the market especially during May, June, July and August and is expected that the new measures for the withdrawal of cars announced by the Ministry, with their application, will retain the market in good level.