SUSTAINED GROWTH IN TURNOVER
DELIVERING DOUBLE-DIGIT EARNINGS PER SHARE GROWTH
NET CASH POSITION
Sustained
turnover growth, double digit increase in profitability and net cash
position are the main highlights of Sarantis Group Nine Month 2015
financial results compared to last year’s nine month results, a
performance particularly impressive amidst the recent developments in
Greece that have seriously damaged consumer confidence and consumption.
Consolidated
Nine Month of 2015 turnover amounted to € 200.17 million versus €
182.15 million in last year’s nine month period, up by 9.89%, on the
back of new additions in the Group’s brand portfolio as well as organic
growth.
Solid growth was observed across the Group’s territory.
Greece, was up by a significant 12.15% in sales at € 76.90 million
versus € 68.57 million in last year’s nine months, performing remarkably
ahead of the market.
The foreign countries, which represent 62%
of the Group’s total turnover, increased by 8.53% to € 123.27 million
from € 113.58 million in last year’s nine month period.
Despite
higher commodity prices, the Group’s Gross Profit improved versus last
year helped by cost saving initiatives on the productivity front.
At
the same time, the focus on operating leverage and controlling
non-value added costs, lead to further improvement of operating margins
and profitability.
Note...
It is noted
that due to a regulation change in the Polish market, trade expenses
amounting to circa € 4.44 million have been reallocated from the
operating expenses line to the top line, therefore reducing the
turnover. This amendment had an impact on 9M 2015 sales, gross profit
and profit margins both on a Group and on a country specific level.
For comparability purposes, the most influenced figures within 9M 2015 are as follows:
On a Group level:
- Group Sales at €204.61 mil. in 9M 2015, increased by 12.33% compared to 9M 2014.
- Gross Profit margin at 48.95% in 9M 2015 from 49.73% in 9M 2014.
- EBIT margin at 7.65% in 9M 2015 from 6.98% in 9M 2014.
On a country level:
- Sales in Poland at €50.42 mil. in 9M 2015, from €49.64 mil. in 9M 2014, up by 1.6% and EBIT margin at 2.66% in 9M 2015 versus 3.21% in last year’s nine months.
- Foreign Countries turnover at €127.71 mil. in 9M 2015 from €113.58 mil. in 9M 2014, up by 12.44%, with the ΕΒΙΤmargin at 4.26% in 9M 2015 versus 4.16% in 9M 2014.
Specifically the Reported Figures:
- EBITDA was up by 20.31% to € 18.49 mil. from €15.37 mil, with an EBITDA margin of 9.23% from 8.44% in 9M 2014.
- Earnings Before Interest and Tax (EBIT) reached € 15.66 mil. increased by 23.09% versus €12.72 mil. and EBIT margin rose to 7.82% from 6.98% in 9M 2014.
- Earnings Before Tax (EBT) increased by 11.53% to €14.20 mil. from €12.74 mil. with the EBT margin reaching 7.10% from 6.99% in last year’s nine months.
- Net Profit was up by 15.79% to €11.38 mil. from €9.83 mil. in the previous year’s nine months, while Net Profit margin settled at 5.68% from 5.40% in 9M 2014.
- Earnings Per Share (EPS) settled at €0.3272 from €0.2826 in 9M 2014.
On
the balance sheet front, exhibiting its healthy financial position,
Sarantis Group is able to invest behind initiatives to accelerate growth
and return value to its shareholders.
As of 9M 2015 the Group
maintains a net cash position of €3.72 mil. Moreover, operating working
capital requirements over sales has improved further predominantly as a
result of tighter credit control.
Despite the difficulties in the
business environment caused by the imposed capital controls and the
political uncertainty, the Group has successfully managed to mitigate
the negative effects through a series of precaution measures and
effectively ensured the uninterrupted operation of the business and its
sustained growth across the line.
As always the Group’s focus
remains intact behind its basic strategic pillars of growth, that is the
renewal and enrichment of its brand portfolio in all the Group’s
countries and value adding acquisitions able to provide high returns and
synergies.
The management is looking into the future with
confidence based on the successful implementation of its strategy, its
agility and plans to optimize further the production and control
operational costs.
The management expects to continue producing strong cashflows and deliver the estimated financial results for FY 2015.
