Exception to the rule
Neither the political and social conditions of the last three months nor the weather conditions helped the Greek retail market.
In the case of JUMBO stores, the rational relation between cost and quality of the products remained constant as well as the continuously improvement of customer service.
During the second quarter of the current financial year the pace of improving figures has slowed down compared to the first quarter but the results of the Group remained within the estimates and targets of the budget for the current financial year.
The management’s estimate for annual increase in sales between +4% to +6% is maintained despite the challenging circumstances.
• During the first six months of the current financial year 2014/2015, earnings after tax were increased by +6,27% y-o-y at EUR 62,67million from EUR 58,97million at the respective period of the last financial year.
• During the first six months of the current financial year 2014/2015, Group sales were increased by +7,70% y-o-y at EUR 341,13million from EUR 316,74 million at the respective period of the last financial year.
Jumbo Group deals with the crisis by investing. During the first six months of the current financial year, the store network was increased with four new stores, one located in Greece, one in Cyprus and two in Romania.
During the first six months, gross margin reached 50,97% from 50,95% at the respective period of last year and EBITDA reached EUR 91,65million from EUR 84,63 million at the respective period of last year, increased by 8,28% y-o-y due to better cost management.
As part of the strategy and the network utilization, in February 2015 the Company proceeded to the closure of the leased store in a mall in Aspropyrgos. This decision was also made as a result of the overall obsolescence that had occurred at the mall. The company's management believes that this event would not significantly affect the results of the current year.
• Consequently the Group until the release date of the first half results had a network of 69 stores in four countries. More specifically, the Group has 52 stores which are located in Greece, 5 in Cyprus, 8 in Bulgaria and 4 in Romania and also the on line store e-Jumbo.
The JUMBO Group taking advantage of its strong financial position continues its investment plan.
By the end of the current financial year, it is expected the opening of one more store in Peloponnese of Greece (9,000 sqm) and one mope hyper-store in the city of Arad in Romania (12,000 sqm).