Press Release
Results Announcement for H1 2009
Aristovoulos G. Petzetakis
The Company “Hellenic Plastics and
Rubber Industry, Aristovoulos G. Petzetakis
Turnover on a parent company level
decreased by 27% at € 17.48 mil. from € 23.8 mil. in H1 2008. Gross profit
increased by 12% at € 3.1 mil. from € 2.5 mil. in H1 2008. EBITDA reached €819 th. instead of losses €61 th. in H1 2008. Losses before taxation reduced by 88% reaching -€0.5 mil. from -€ 3.9 mil. in H1 2008, whereas losses after taxation decreased by 84% at - €0.65 mil. from -€ 4.1 mil. in H1 2008.
On a consolidated level, sales reduced by 30% reaching € 57.2 mil. from € 82.3 mil. in H1 2008. Gross profit
decreased by 27% at € 10.5 mil. from € 14.4 mil. in H1 2008. EBITDA decreased by 35% at € 1.1 mil. from € 1.7 mil. in H1 2008 . Earnings before taxation decreased by
63% at -€ 2.4 mil. from -€ 6.5 mil. in H1 2008. Losses after taxation reduced by 53%
at -€3.1 mil. from -€6.6 mil. in H1 2008.
Specifically, concerning the parent company:
1)
On EBITDA level there is a significant operational profitability instead of loss in 2008 mainly due to
the improvement of the gross profit margin (at 17.7% from 10.4%) due to the implementation of an effective
trade policy, as
well as the costs reduction of €1.1 mil. as a result of successful and timely
realisation of restructuring plan which started in December 2008.
2)
On losses after taxation level, there is significant reduction by 84% attributed among other factors on
positive forex translation.
Respectively on a consolidated level: there is considerable expense reduction of € 3.5 mil. However this fact does not balance
the decrease in sales and profitability
mainly due to the underperformance of the subsidiary in South Africa, which
failed to achieve the restructuring
targets contrary to the parent company. The Group’s management recently
completed a round of important administrative changes (including the change of management in
the South African subsidiary) and has as a main target the subsidiary’s return to profitability as
well as the regain of market share . Although
in the short term the South African market reflects a downturn, the management expects
that the market has a strong potential and the restructuring plan under implementation has
as a strategic target for its affiliate to
take the maximum benefit of the
forthcoming products demand increase.
It is noted that during the 2nd quarter the following
were successfully implemented:
·
Parent company sales decreased at a lower pace to -23% instead of -31% during Q1 09, due to the market share regain as
the market remained considerably declining.
·
The reduction of administration and
factory overheads throughout
the Group (worth
of €6.9 mil. on an annual basis) which had an impact € 3.5 mil. since the beginning of the year.
·
Finally, the Group and the parent company presented positive earnings
after taxes for the first time after long.
Summarising, during H1 2009 the Petzetakis Group Management succeeded to:
1) Deliver operational profitability (from loss) for the parent company despite the 27% sales decrease, with a parallel increase of the
market share in the Greek market.
2) Ensure the normal operation of the European subsidiary plants in Germany, Spain & Italy
despite the unprecedented sales volume decline (more than 35%).
3) Materialize a specific action plan for South Africa, as the significant expense reduction
did not made the company profitable during H1 2009. This plan has as a short term target to make
the affiliate profitable during the 2nd quarter of 2009.
4) Create positive operational cash flows worth of €1.5 mil. instead of outflow of €4 mil. in H1 2008.