Jumbo group, the biggest retail company of toys, baby products, stationary products and other relevant products in Greece, announces the results for the nine months of the current financial year 2008/2009:
Group sales reached € 356.62m from € 307.68m in the respective period last year increased by 15.91% y-o-y. Despite the difficult macroeconomic environment the Jumbo stores in Greece kept their dynamics while the stores in Cyprus record also an increase in terms of sales. The hyper-store in Bulgaria after its first year of operation continues its exceptional performance. During the third quarter of the current financial year the company proceeded with the closure of the store in Cholargos in January according to the restructuring plan and launched a new store in Aspropyrgos of 9,200sqm.
The gross margin reached 52.79% from 52.64% in the respective period last year while EBITDA reached € 99.30m from € 90.32m in 9m 2007/2008 increased by 9.94% y-o-y. EBITDA was improved despite the increase of the expenses due to the continuous growth of the company, the restructuring of the Group’s stores and the increased need for advertisement. It is noted that the figure concerning “other income” was lower from the respective period last year as at the nine months of 2007/2008 the company had received insurance compensation amount of €2.13m concerning damages from fire in Kolonos store and had also a gain of € 0.45m approximately from the sale of real estate.
As a result consolidated earnings before taxes reached € 86.64m increased by 9.57% y-o-y. As a result of the above and taking into account the effect from the reduction of the tax rate in the deferred taxation of € 1.2m. Group’s net earnings after taxes reached € 68.06m increased by 15.92% y-o-y. It is noted that in the respective period last year the company was subject to an extraordinary interest bearing taxation concerning reserve it had formed based on the law 3220/2004 back in 2004. As a consequence the amount of € 1.4m which concerns tax, was included in the after tax results.
As of now the group has also the sales results of the Greek Orthodox Easter which represent the 10% of the annual turnover, the management estimates that for the financial year ending in June 2009 sales will grow by more than 15% y-o-y. The management in order to preserve the gross margin of the group has taken the strategic decision to exit from non contributing items to the Group’s gross margin and particularly from game machines (consoles) which represent 6% of the Group’s turnover. Consequently, for the next financial year (July 2009-June 2010) the management estimates that group sales will increase by 8% y-o-y, profits before tax will increase by 6%y-o-y and profits after tax will increase by 6% y-o-y.
Today, the Group operates 44 stores of which 41 are located in Greece, 2 in Cyprus and 1 in Bulgaria while for the next financial year it is expected the opening of two more stores, one in Greece and one in Bulgaria while the opening of the third store in Bulgaria has been delayed for the following financial year.