Earnings increased by 9,25% y-o-y in a difficult environment

Jumbo Group, the largest retail company of toys, baby, stationary and other relevant products in Greece, posted H1 results for the financial year July 2010- June 2011, stating that consolidated sales reached EUR 290,17 m from EUR 292,08 m at the respective period last year, declined by 0,65%. The net profits of Group amounted to EUR 53,95m from EUR 49,38m implying an increase of 9,25% y-o-y.

The sales performance at the first half of the current financial year is better than the performance of the retail market in Greece. According to up to date available data, turnover in the retail sales has declined due to the economic crisis and other parameters in Greece such as the repeated strikes. The group at the first half-year period operated 6 new hyper stores which are expected to contribute to the Group’s future growth.

The gross margin for the Group was 50,28% from 51,86% at the respective period last year effected significantly by the management’s strategic decision not to increase prices despite the VAT increase in Greece. The decline of the Gross Margin was smaller than the management’s estimate for the financial year 2010/2011 as there were parameters like the stronger than expected currency and the lower transport cost that had a positive impact. Consolidated EBITDA decreased by 10,54% y-o-y to EUR 75,52m from EUR 84,42m at the respective period last year.

Τhe profits after taxes of the Group amounted to EUR 53,95m from EUR 49,38m implying an increase of 9,25% y-o-y. It is noted that the net profits after tax are not comparable as an extraordinary tax contribution according to article 2 of the law 3808/2009 amount of EUR 9.824 thousand was calculated at the profits of the first half that ended on 31/12/2009.

On 31/12/2010 Cash and cash equivalents for the Group amounted to EUR 228,63m, meaning that cash balances of the Group were higher from the total borrowings by the amount of EUR 72,16m, consequently total net borrowing was negative.

Today, the Group operates 51 stores of which 44 are located in Greece, 3 in Cyprus and 4 in Bulgaria. Jumbo Group continues its investment program, targeting to the opening of 6 new stores for the next financial year July 2011-June 2012 of which 3 will be in Greece and 3 in Bulgaria.