A positive growth rate in sales despite the continuing downward economic environment

Despite the continuing negative economic developments in recent months, JUMBO Group managed to maintain a positive growth rate in terms of turnover.

• During the first nine months of the current financial year 2012/2013 sales reached 381,85 million EUR from 380,31 million EUR implying an increase of +0,41%.

At the end of the 9 month period, the Group operated a network of 62 stores. Out of which:

• 51 are located in Greece, 3 in Cyprus and 8 in Bulgaria.
• Jumbo has a commercial agreement with independent customers (franchise agreements) in FYROM and in Albania which operate two stores each.
• In May the Group launched its e-shop in Greece.

During the nine months of the current financial year the gross margin of the Group eased at 50,94% from 52,23% at the respective period of the previous year.

• The Euro / dollar exchange rate performed better than it was expected and
• Transportation costs rose less than initially anticipated.

These two factors were in favour of the gross margin which eased by 1,29% while the initial estimation for the year was four percentage points. The management estimates that for the current financial year the decrease of the gross margin will not exceed the one and a half percentage point.

• During the first nine months of the current financial year consolidated EBITDA reached 71,57 million EUR from 95,53 million EUR from the respected period last year implying a decrease of - 25,07% due to loss approximately of 19 million EUR concerning the impairment of the subsidiary’s company deposits at the Bank of Cyprus. On a comparable base, excluding the above extraordinary event the Group’s EBITDA for the nine months 2012/2013 would be at 90,83 million EUR decreased by only -4,92%.

• Τhe profitability of the Group reached € 48 million decreased by approximately 29,1% y-o-y. On a comparable base, the Group’s profits for the nine months 2012/2013 would be approximately 65,59 million EUR decreased by only -3,42% y-o-y.

For the next financial year (July 2013- June 2014) the Group is expected to open in Greece an owned store in Serres (9.000 sqm), a leased store in Acharnes (11.000 sqm) and one more owned store in Northern Greece at Iasmos (9.000 sqm). Moreover, the new leased store in Paphos of Cyprus (10.000 sqm) it is expected to start operating. Regarding Romania, the Group will start its operation in the country with the opening of two leased hyper stores one in Bucharest (14.000 sqm) and one in Timisoara (13.000 sqm).