Decreased sales due to the decline of building activity Cost control mitigates impact and contributes to maintaining positive profit margins
HERACLES Group of Companies announced today sales amounting to 269.5 million Euro for the 1st semester of 2009, decreasing by 24.5% compared to the same period in 2008. Sales of the Company were at 241.4 million Euro, decreasing by 24.8% compared to the first semester in 2008.
The declining market for cement and other construction materials, due to the drastic decrease of private construction activity, which was worsened by the international financial crisis, negatively impacted the turnover in the first semester of 2009.
The Group's gross margin for the first semester of 2009 was at 20.2% and the Company's at 18.5%, from 21.1% and 23.1% respectively in the same period of 2008. Intensified efforts and measures taken to control and reduce operating costs and the optimization of production and supply chain processes, mitigated the impact of lower volumes and helped maintain positive profit margins.
Net profit after taxes for the Group amounted to 11.3 million Euro in the first semester of 2009, compared to 29 million Euro of the same period in 2008. The Company's net profit after taxes was 22.9 million Euro compared to 31.0 million Euro in the respective period of 2008.