- Consolidated 9M 2010 sales of €1,169.7m, reflecting a 22% growth over the previous year
- Consolidated net profits after tax and minorities in the third quarter of €1.9m
- NAV stands at €2.464bn translating to a NAV per share of €3.20
- The company maintains solid capital adequacy having a cash position of €484.9m at a time when liquidity in the domestic environment is of paramount importance and where investment opportunities will most likely emerge imminently
- Stronger Q3 performance offsets operational losses incurred during H1 2010
For the First Nine Months of 2010, Marfin Investment Group (MIG) announced today losses after tax and minorities totaling €1,385.3m, recording however, a net profit of €1.9m during Q3. At company level, total losses amounted to €1,174.6m, with a loss of €6.6m in Q3. As already stated in our half-yearly results, the vast majority of MIG's losses in the current year relate to the impairments and revaluation of assets which amounted to €1,161.4m on a consolidated basis and to €1,162.2m on a company level.
Nine Months consolidated Group sales amounted to €1,169.7m vs. €955.2m in the same period of 2009, while consolidated Q3 sales reached €416.7m vs. €371.5m in 2009. Consolidated nine months gross profit reached €292.9m vs. €324.9m recorded during the same period last year, while consolidated Q3 gross profit reached €114.1m vs. €134.1m in 2009.
NAV stood at €2.464bn at the end of the third quarter, amounting to €3.20 per share. As such, MIG's current share price levels represent a remarkable 82% discount to the company's NAV.
MIG continues to demonstrate a solid capital structure and strong liquidity at a time when liquidity in the domestic environment is both scarce and of paramount importance. The Company maintains solid capital adequacy having a cash position of €484.9m at a time where significant investment opportunities will emerge and mergers and acquisitions activity appears imminent.
While the markets continue to be affected by economic challenges, particularly within the most difficult economic environment post-WWII in Greece, MIG's companies continue to operate prudently, building stronger market shares and holding onto number one or number two market positions in all of the sectors in which they operate. The operational performance of MIG's companies during the third quarter has been stronger than in previous quarters, resulting in EBITDA-positive results in the majority of companies and a net profit at the consolidated level, thus creating optimism regarding enhancement in operational trends across the group. The companies are supported by strong balance sheets, strong cash resources, clear market-leading positions, high quality, and independently assessed assets of value.
Commenting on the results, MIG's CEO Mr. Dennis Malamatinas made the following statement:
"The most difficult economic environment in Greece post-WWII has continued to affect our companies, albeit to a lesser extent than those of our competitors. At the same time however, they have all continued to hold on to their leading market shares and continue to provide our consumers with the best quality products and services.
As stated since the beginning of this year, MIG's focus in 2010 has not been on maximizing profitability in this extremely challenging environment but rather on maintaining market positioning, focusing on cost containment and adopting a socially sensitive approach towards our consumers as this is evidenced by the 22% increase in sales over the previous year.
This strategy represents MIG's adjustment to the current economic environment and is expected to change as conditions improve. MIG's companies are ideally positioned to reap the benefits of enhanced market position and consumer loyalty and are expected to return to significant levels of profitability in the medium-term.
Our 2010 results are greatly affected by the impairment charges and revaluation of our assets, a non-cash charge, which took place in our 1H 2010 results. Despite these, our current NAV stands at €3.20 implying that the current share price levels represent a remarkable 82% discount.
We continue to stand by our strategy of emphasizing the maintenance of solid capital adequacy and strong liquidity, which currently stands at €484.9m following the payment of the constructive dividend during the third quarter. Going forward, we believe that this rare position of liquidity will enable us to participate from a unique position of strength in the impending restructuring in the Greek Business environment and take advantage of the unique opportunities we believe will emerge.
As stated at the half year mark, we continue to believe that in the future, mergers and acquisitions in MIG's sectors will be unavoidable. Companies will be able to positively contribute, from the realization of synergies, in this challenging economic environment with a level of pricing and services which will correspond to the lessened purchasing power of consumers. MIG is ideally positioned to participate in all these developments.
MIG's companies, following their stated strategies, will continue to increase their market leading positions and strengthen their financials, positioning MIG favourably to reward its long-term shareholders."
Contacts:
Investor Relations: +30 210 350 4000, +44 207 054 9280
About MIG: Marfin Investment Group Holdings S.A. is an international investment holding company based in Greece and throughout Southeastern Europe. The Company believes it is uniquely positioned to take advantage of an expanding array of investment opportunities in this region; opportunities in which traditional private equity funds and investment vehicles lacking MIG?s regional focus, scale, expertise, and/or its investment flexibility and financial resources, may find difficult to identify and exploit. MIG is quoted on the Athens stock exchange and has a portfolio of leading companies in mainly defensive sectors across the SEE region, grouped into Food & Dairy, Transportation, Healthcare, Financial Institutions, IT/Telecoms, and Private Equity sectors. Included amongst its portfolio and subsidiary companies is Vivartia, a leading food and food retail business in the region; Attica Group, a leading passenger ferry operator; Olympic Air, Greece?s national flag carrier; the Hygeia Group of hospitals, a leading private hospital group in Greece, Cyprus, Turkey, and Albania; Marfin Popular Bank; SingularLogic, the leading IT operator in Greece; and Robne Kuce Beograd, the largest chain of department stores in Serbia. The company has been listed on the Athens Stock Exchange since July 2007, when it raised €5.2bn in the largest rights issue by an investment company in global history at the time.