Press Release - Results for the first half of the current financial year 2008/2009
Jumbo group, the biggest retail company of toys, baby products, stationary products and other relevant products in Greece, announces the results for the first half of the current financial year 2008/2009:
Group sales reached € 276.0m from € 238.5m in the respective period last year increased by 15.72% y-o-y. The Group succeeded that great performance mainly due to the contribution of the Jumbo stores in Greece which kept their dynamics and the exceptional performance of the hyper-store in Bulgaria. The performance of the stores in Cyprus is satisfactory as managed to increase their turnover despite the fact that the company had taken the strategic decision to decrease the prices (Euro parity) after the country adopted the Euro.
The gross margin reached 51.68% from 51.49% in the respective period last year while EBITDA reached € 78.7m from € 72.43m in H1 2007/2008 increased by 8.7%. EBITDA was improved despite the increase of the expenses due to the continuous development of the company, the continuous 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 first half of 2007/2008 the company had received part of insurance compensation amount of €1.9m concerning damages from fire in Kolonos store and had also a gain of € 0.45m from the sale of real estate.
As a result consolidated earnings before taxes reached € 70.2m increased by 8.1% y-o-y, due to constrained financial expenses, as the company’s management has secure enough capital in favorable terms. As a result of the above and taking into account the effect from the reduction of the tax rate in the deferred taxation of € 1.3m. the Group’s net earnings after taxes reached € 55.40m increased by 15.03% y-o-y. It is noted that in the respective period last year the company was subject to an extraordinary interest bearing taxation concerning the 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.
JUMBO Group continues its investment program despite the difficult macroeconomic environment. During the first half of the current financial year July 2008-June 2009 launched three new hyper-stores. In July the company launched the hyper store in Promahonas while in August the company launched two stores in Athens, the one at Piraeus Avenue and the second store at Marousi. Furthermore, the company continued with the restructuring of its network and closed one store in Athens (Cholargos) in January 2009. On the second half of the current financial year the company is expected to launch the hyper-store in Aspropirgos of 9.200sqm.
Additionally, the subsidiary company in Bulgaria having six plots in its portfolio proceeds with the necessary actions in order to launch two more stores at the next financial year July 2009-June 2010.
Today, the Group operates 43 stores of which 40 are located in Greece, 2 in Cyprus and 1 in Bulgaria.