ELAIS-UNILEVER S.A. announced its H1 2006 financial results prepared in accordance with International Financial Reporting Standards (I.F.R.S.). Company sales amounted to Euro117.6 mil. over Euro 113.2 mil. in the first half of 2005 marking an increase of 4% which is primarily attributed to the growth posted in the markets of ELAIS core brands such as Becel, Vitam and Lipton, combined with the successful investments in product branding and promotion. Gross profit for period stood at Euro 48.1 mil. over Euro 47.2 mil. in the first half of 2005, posting an increase of 1.9%. Furthermore, gross profit margin for the first half of 2006 amounted to 40.9% of turnover over 41.7% in the respective period last year. The decrease of the gross profit margin came as a result of the pressure exercised on the company's costs by the constant increases in the price of olive oil raw material.
EBITDA for the first half of 2006 amounted to Euro 19.6 mil. over Euro 17.3 mil. in the respective period last year, posting an increase of 13.2%. The abovementioned increase reflects lower selling and administrative expenses as a result of a more balanced phasing of marketing expenses throughout the year. Profit before tax stood at Euro 18.9 mil. over Euro 16.5 mil. in the first half of 2005 marking an increase of 14.6% which resulted from the strong profit development within the second quarter of 2006. Finally, profits after tax for the first half of 2006 posted an increase of 20.1% and amounted to Euro 13 mil. over Euro 10.8 mil. in the respective period last year.
Within the framework of the abovementioned financial results, the management of the company deems that the strategic choices made, regarding the investments in product innovation, have succeeded. The company will continue within 2006 its investment program offering to the end consumers innovative vitality products always under the quality seal of ELAIS-UNILEVER.