JUMBO - Annual results for the fiscal year 01/07/2009-30/06/2010

JUMBO - Annual results for the fiscal year 01/07/2009-30/06/2010
• Increase of sales by 4,17%
• Increase of profits before taxes by 5,24%
• Dividend yield of 3.8%.

Jumbo group the largest retail company of toys, baby, stationary and other relevant products in Greece posted the annual results for the fiscal year 01/07/2009-30/06/2010:

The Group’s Turnover reached 487,33 mil Euro increased by 4,17% y-o-y from 467,81 mil Euro last year. Despite the difficult macroeconomic environment in Greece the company maintained a satisfactory sales performance while an increase of turnover was accomplished by the Company’s stores in Cyprus. Regarding Bulgaria, the new store at Plovdiv contributed to the double digit sales growth demonstrated at the financial year July 2009-June 2010.

The group managed to maintain the gross profit margin in high levels. The gross profit margin reached 54,09% as compared to 54,35% of the previous year while earnings before interest, tax, investment results and depreciation (EBITDA) reached € 144,73mil from € 139,63mil in the previous year presenting an increase of 3,66% y-o-y. This performance is attributed to the group’s effort to constrain expenses.
Consolidated profit before taxes amounted in € 129,73 mil increased by 5,24% y-o-y while profits after taxes amounted in EUR 79,24 millions from EUR 95,74 millions of the previous period, decreased at 17,23%. The significant decline of the company’s profit after taxes and extraordinary tax contribution is attributed to the fact that due to the restriction arising from IFRS provisions, the results of the current financial year were burdened with the total amount of € 20.731ths which applies for the two extraordinary tax contributions, of the law 3808/10-12-2009 and the law 3845/6-5-2010. If the results of the Group had been burdened with only one extraordinary tax contribution, that of the Law 3808/2009, then the amount would be € 90,15 million and they would be decreased by 5,84% in respect of the previous financial year 2008/2009.We point out that the above accounting treatment and presentation for the second extraordinary contribution does not affect the cash flows of the fiscal year 2009/2010. The company’s management will propose to the Annual General Meeting of the shareholders that will take place on 8 December 2010, the distribution of a dividend of € 0,189 (gross) per share.

The back to school period was influenced by the irregularity caused from the truck drivers strike. Nevertheless the Group is expected to maintain its sales for the quarter almost at last years’ level. The company’s management expects that the challenging macroeconomic environment is going to have a negative impact on sales’ performance of the existing store network. The company in order to counterbalance the lost turnover accelerates its effort for the opening of the six new stores that have been planned for the current financial year 2010/2011. In August 2010 the company started the operation of one more store in Sofia of total surface 15ths sqm. With the completion of the new stores the company expects that the annual sales will increase by 2 % y-o-y approximately.

Moreover, the Company, having in mind the difficulties that the consumers in Greece are going to face, has taken the strategic decision not to proceed in the increase of its prices due to the VAT increase of 23%. This decision in combination with the inflationary procures in Asia is expected to affect negatively the gross profit margin by 6 percentage points.

The Group’s network constitutes of 46 operating stores of which 41 in Greece, 2 in Cyprus and 3 in Bulgaria.