Group Turnover reached 65.64mln euro in Q1 2006 versus 62.53 mln euro in the respective quarter of 2005, an increase of 5%.
Gross Profits for the Group were marginally higher by 0.58% at 27.61 mln euro versus 27.45 mln euro last year. The Gross Profit Margin was somewhat lower in the particular quarter primarily due to the change in logistics procedures which caused delay in delivery of a particular brand of apparel which carries a high profit margin. Additionally, the sales period this year was extended by 2 weeks compared to the year before.
Net Profits after taxes were at 3.6 mln euro compared to 4.7 mln euro last year. The following factors contributed to this: a) extraordinary income in Q1 of 2005 of approximately 1 mln euro from the sale of assets, was not repeated this quarter b) distribution expenses were higher, at 25.9% of Turnover versus 24.2% over the respective period in 2005.
The 15.12% increase in Turnover for Notos Galleries department stores was notable despite increased competition. An important contribution to this was the 59% increase in Turnover of the Notos Galleries Home department store, which is now well established in the wedding lists market, with a tendency to surpass the 25% market share achieved in 2005.
The highest growth came from International Subsidiaries, recording 3.6 mln euro in Turnover versus 2.1 mln euro last year, an increase of 73%. This growth rate is considered sustainable, contributing significantly to the development of the Group. The share of foreign subsidiaries in Group Turnover increased from 3.3% in Q1 2005 to 5.5% in Q1 2006. The target of increasing this percentage contribution to 10% of Group Turnover by 2008 remains.