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 404.2 million Euro for the nine months of 2009, decreasing by 24.0% compared to the same period in 2008. Sales of the Company were at 360.9 million Euro, decreasing by 24.4% compared with the nine months of 2008.
The reduction in the sales volume of cement and other construction materials, due to the fall in construction activity, both in the domestic and international markets, had a concomitant effect on the turnover in the nine months period of 2009.
The Group's gross margin for the nine months of 2009 was at 24.0% and the Company's at 23.3%, from 22.5% and 24.2% respectively in the same period of 2008. Intensified efforts and measures taken to 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 30.0 million Euro in the nine months of 2009, compared to 51.6 million Euro of the same period in 2008. The Company's net profit after taxes was 43.4 million Euro compared to 40.7 million Euro in the respective period of 2008. The income tax of the Group and the Company for the nine months period of 2009 declined as compared to 2008 due primarily to lower pre-tax operating profit.