Continuing dynamic path of success for the benefit of Customers-Shareholders-State

JUMBO stores continue to offer the best price for the products they offer to the Greek family. Consumers reward JUMBO with more purchases covering the most of their everyday needs.

The result of this uninterrupted relationship based on trust is the new significant increase of the Group’s sales by 9,44% y-o-y during the 2015/2016, from the "hard" July 2015 to the “calm” June 2016. The sales of JUMBO Group during the year ended on 30.06.2016 rose to EUR 637,56 million from EUR 582,55 million in 2014/2015.

There has been a significant effort to absorb the VAT increase in Greece without burdening the consumers. That is why the gross margin was slightly decreased to 53% from 53,16%, which was the previous year.

However, thanks to the better management of the overall operational cost as a percentage of sales, the earnings before interest, taxes, depreciation, and amortization (EBITDA) amounted to EUR 183,71 mil in 2015/2016 versus EUR 159,29 million 2014/2015, increased by 15,35% y-o-y.

As a result, the Group's profit amounted to EUR 121,26 mil in 2015/2016 from EUR 104,84 mil. in 2014/2015, increased by 15,67%, despite the increase of tax rates in Greece.

The management of Jumbo Group, taking into account the economic conditions, the group performance and the trust demonstrated by the shareholders, will propose, among other issues, the distribution of a dividend of EUR 0,27 (gross) per share (after tax EUR 0,2430 per share) in the following Ordinary General Meeting.

The network is getting improved and delivers

During the year ended on 30.06.2016 the stores in Greece and Cyprus recorded a turnover increase of approximately 4% and 5% respectively. In Romania, the turnover almost doubled. In Bulgaria, each store records weighted average sales increase of 12%.

During the fiscal year ended on 30.06.2016, the Group terminated the operation of two small leased stores. In October 2015 the seventh store of the Group started its operation in Romania, in the city of Pitesti.

The Group operated in June 2016, 71 stores in four countries. More specifically, there are 51 stores in Greece, 5 in Cyprus, 8 in Bulgaria, 7 in Romania and the online store

Cautious optimism for the current financial year

The new fiscal year started on July 1st, 2016. During the first quarter (July - September 2016), the sales of the Group amounted to EUR 170,23 million from EUR 152,62 million at the respective period of the last year, i.e. increased by 11,53%.

This is due to the fact that the stores in Greece and Cyprus recorded an increase of approximately 4%, while the stores in Bulgaria and Romania continued to record a double-digit dynamic growth rate.

Despite the strong start of the current financial year, it should be noted that the most important quarter is the second one, which includes the Christmas season.

According to the Group's budget for the current financial year, sales are expected to range between 4% - 7%, while earnings are expected to remain at the same level of the previous year, as the VAT increase in Greece, the Euro / Dollar exchange rate and the continuing deflationary policy enforced in the Greek market are expected to press the gross margin profit.

Concerning the financial year that started in July 2016, is it estimated that the new hyper-store of JUMBO Group will operate in Bulgaria in November, while the Group invests in two new hyper-stores in Romania, which are estimated to operate by Christmas 2017.

Moreover, the company, through partnerships, has a presence with stores that carry Jumbo brand in four countries (FYROM, Albania, Kosovo, Serbia). As for the next fiscal year, the branch network of the franchisers is expected to expand in countries that they are already operating, while is also expected the expansion of the commercial cooperation with the independent customer Kid Zone Sh.p.k, in Bosnia.