AB: 888 NEW WORKING POSITIONS AND 7.2% INCREASE IN SALES
Alfa Beta Group continued in the first semester of 2010, as in the previous years, to invest extensively in its price competitiveness and to further develop its competitive advantage in providing the best quality products at the best retail prices. More than 3.500 products are currently sold at a price below 1 Euro. The Group continues to provide a wide assortment variety in all categories and other unique services to its customers (such as ?cash-back? and the ability to pay for various third party services, such as cable TV and other state utilities) in order to achieve customer satisfaction.
Moreover, in a period of a significant economic downturn, the Group further invested in growth and increased the number of personnel. As a result of growth, the Group increased the number of employees by 888 new working positions, from 8.857 at the end of the second semester of 2009 to 9.745 at the end of the second semester of 2010, of which 159 were employed from the beginning of the current financial year.
The Group continued to strengthen its network and has already invested more than Euros 29 million this year for opening of new stores and renovations of existing stores. In November 2009 the Group acquired the Greek unlisted retailer KORYFI SA (?KORYFI?) in the region of Thrace. This acquisition strengthened even further its market presence in Northern Greece.
As of 30 June 2010, the Group's sales network numbered 219 stores, consisting of 169 company-operated retail stores, 39 franchisee retail stores and 11 company-operated cash-and-carry stores.
The consolidated financial statements of the Group for the first semester of 2010 include for the first time the financial statements of KORYFI, which was acquired on 23 November 2009.
For this reason, the financial results for the first semester of 2010 are not comparable to those of the previous financial year.
1st SEMESTER 2010 RESULTS
"ALFA-BETA" VASSILOPOULOS S.A. 01.01.2010-30.06.2010 01.01.2009-30.06.2009
Change
Consolidated Results (in thousand EUR)
Revenue 765.788 714.399 7,2%
Gross Profit 177.577 163.122 8,9%
On Revenues 23,2% 22,8%
Operating Expenses 161.616 146.793 10,1%
On Revenues 21,1% 20,5%
EBITDA 36.106 33.941 6,4%
On Revenues 4,7% 4,7%
Operating Profit 19.463 19.407 0,3%
On Revenues 2,5% 2,7%
Profit before Tax 16.208 16.316 -0,7%
On Revenues 2,1% 2,3%
Profit after Tax & Minority Rights 5.622 10.510 -46,5%
On Revenues 0,7% 1,5%
During the period from 1 January - 30 June 2010, Consolidated Revenues reached 765.8 million EUR from 714.4 in 2009, an increase of 7.2%, due to the Company's competitive price policy, the contribution of new stores, (including the recently acquired KORYFI stores), and improved market share.
Consolidated Gross Profit reached 177.6 million EUR for the first semester of 2010 from 163.1 million EUR in 2009, an increase of 8.9%, reflecting higher volumes, increased private label contribution, and improvements in purchasing and inventory management.
Consolidated Operating Expenses reached 161.6 million EUR for the first semester of 2010 from 146.8 million EUR in 2009, an increase of 10.1%. This increase primarily reflects the investments for expanding and upgrading the store network, labor cost increases, as well as the effect of the operations of the acquired Koryfi stores.
Consolidated Profit before Tax, Financial, Investing Activities, Depreciation and Amortization (EBITDA) reached 36.1 million EUR for the first semester of 2010 from 33.9 million EUR in 2009, an increase of 6,4%, mainly due to the increase in sales and the improved gross profit.
Consolidated Operating Profit amounted to 19.5 million EUR for the first semester of 2010 compared with 19.4 million EUR in 2009.
Consolidated Profit before Tax amounted to 16.2 million EUR for the first semester of 2010 compared to 16.3 million EUR in 2009.
Consolidated Net Profit reached 5.6 million EUR for the first semester of 2010 compared to 10.5 million EUR in 2009. Net Profit was affected by the special contribution tax, (Law 3845/2010), voted on 6 May 2010, and as a result the Group recorded a tax liability of 5.5 million EUR.
OUTLOOK 2010
For the second semester of 2010, "ALFA BETA" VASSILOPOULOS plans to add 6-8 new stores to its network, including those of the franchise network.
"ALFA BETA" VASSILOPOULOS S.A.
"ALFA BETA" VASSILOPOULOS S.A., is a food retail company established in 1969 and member of the Belgian Delhaize Group since 1992. As at 30 June 2010 the end of 2009, the Group "ALFA BETA" operated 219 stores (169 company operated food retail sales points, 11 cash-and-carry stores, & 39 affiliated stores) and employed 9,745 people. For the period 1 January - 30 June 2010, Consolidated Turnover amounted to EUR 765.8 million and Consolidated Profit before Tax to EUR 16.2 million. ALFA BETA VASSILOPOULOS S.A. is listed on the Athens Stock Exchange (BASIK) since 1990.