Sales increase of 15.81% and earnings increase of 16.03% for the financial year ended in June 2009

Jumbo group, the biggest retail company of toys, baby products, stationary products and other relevant products in Greece, announces the annual results for the financial year 2008/2009:

Group sales reached € 467.81m from € 403.95m last year increased by 15.81% y-o-y. Despite the difficult macroeconomic environment Jumbo stores in Greece kept their dynamics while the stores in Cyprus recorded also an increase in terms of sales. The hyper-store in Bulgaria after its first year of operation continues its exceptional performance. During the financial year ended in June 2009 the group launched four new hyper stores in Greece and proceeded with the closure of the store in Cholargos as part of the restructure program.

The Group managed to reiterate the gross margin in high levels, despite the challenging macroeconomic environment. The gross margin reached 54.35% from 54.44% last financial year while EBITDA reached € 139.63m from € 125,62m in FY 2007/2008 increased by 11.15% y-o-y. EBITDA was improved due to constrain of expenses especially on the second half of the financial year 2008/2009. 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. Consolidated earnings before taxes reached € 123.28m increased by 11.33% 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 € 1.1m Group’s net earnings after taxes reached € 95.74m increased by 16.03% y-o-y. It is noted that during the FY 2007/2008 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. The company’s Board of Directors will propose to the Annual General Meeting of the shareholders on 09.12.2009 the distribution of a divided of € 0.23 per share (gross). It is noted that according to article 18 of L.3697/2008, dividends are subject to 10% withholding tax.

Regarding the current financial year (July 2009-June 2010) despite the arrhythmia caused by the announcement of National Elections in the market, sales growth rate for the first quarter of the current financial year is expected to be in line with the management’s guidance for annual sales increase of 8% y-o-y. It is also noted that the management aims to open two new hyper stores during the current financial year, one in Greece and one in Bulgaria.

Today, the Group operates 44 stores of which 41 are located in Greece, 2 in Cyprus and 1 in Bulgaria.