Stability of sales during the first ten months of the financial year 2012/2013
Jumbo Group, the largest retail company of toys, baby products, stationary products and other relevant products in Greece, in its effort to keep informed the investors and its shareholders announces that during the first nine months of the current financial year sales grew by +0,41% despite the well known difficulties and the extraordinary conditions.
The nine months 2012/2013 financial results will be released on Wednesday May 29th after market close.
For the information of the shareholders, partners and investors it should be noted that the nine months financial results of Jumbo Group will include the impact of the recent crisis in Cyprus.
• With an earlier announcement Jumbo had informed that its subsidiary company in Cyprus had deposits at the Bank of Cyprus of approximately € 58 million. Based on the evaluation of the up to date official statements of the Central Bank of Cyprus it is estimated that the 37,5% of the uninsured amount of the bank deposits will be impaired by subsequent net loss of approximately € 20 millions. As a result the profitability of the Group will reach € 48 million decreased by approximately 29% y-o-y. The Group expects the final decisions of the Cyprus Republic that may be reverse the above company’s choices.
• On a comparable base, excluding the above extraordinary event the Group’s profits for the nine months 2012/2013 would be decreased by only -3,42% y-o-y.
During the 9 months the sales kept their positive growth rate. That performance is attributed mainly to the contribution of the stores in Bulgaria while the stores located in Cyprus and Greece recorded a slight decline.
• It should be noted that sales of Easter period will effect positively the last quarter of the current financial year while last year Easter’s sales splited between the last two quarters as in 2012 the celebration of Easter was earlier.
• Despite the disruption caused by the events in Cyprus, sales during the Easter season in both Greece and Bulgaria were better than expected. As a result Group’s sales for the ten months (July-April) reached last year's levels.
The Group continues the implementation of its investment program. On May 15th the Group will launch the on line Jumbo store in Greece which will offer party items, children stationery items and exclusive e-shop outdoor products (eg bicycles, swimming pools, inflatable castles etc).
It is reminded that at the end of the current financial year (June 2013) two more stores will open in Greece while the Group continues the preparation for the opening of Jumbo stores in Romania.
During the next financial year (July 2013 - June 2014) it is expected to open at least two stores in Romania, the new store of the Group in Paphos (Cyprus) and one more store in Greece.