2003

05/04/2003 - Successful Turnaround Plan for the 1st Quarter of 2003.

A.G.PETZETAKIS reported a significant improvement at its financial figures for the 1st Quarter of 2003, both at a group and at a parent company level. The positive trend presented in this time period confirms the efficiency of the pre-determined action plan that the management designed and has been implementing since November 2002.

Petzetakis group continued expanding its turnover by 2,7% (after the incorporation of the sales of VECHRO in December 2002) reaching €43,1 mil - a result of the continuous increase in market shares in Europe, Africa and N. America, that contribute 64% of the consolidates sales turnover. On a closer look, N. Africa especially surpassed all management expectations boosting turnover by 25% in comparison to the respective time period of 2002. Earnings before taxes approximated €0,8 mil., marking a slight decrease from the lack of unexpected profits that occurred in the previous financial year.

On a parent-company level, and due to unforeseen bad-weather conditions during the months of Feb and March 03, sales in Greece reached €13,3 mil; a 15,4% decrease in relation to the 1st Quarter of 2002. However, the sales decline was only temporary and that can be confirmed by the immediate boost in sales in these last few months (April and May 03).

The strategic implementation of the cost-cutting program for the operational expenses of the parent company was crowned with unique success, achieving a 20,6% decrease, forming thus the EBITDA margin at 10,7% from 8,9% in 2002. This cost minimization in combination with the increased cash inflows from subsidiaries abroad, all created a positive result for the parent company of €0,31 mil.

Petzetakis Group -Sales breakdown by Geographical region 1st Q 03
Petzetakis Greece 35,7%
Petzetakis Eurohose 23,2%
Petzetakis Africa 41,1%
Total 100,0%

For the year 2003, in total, management estimates total sales of 200 mil Euros and a positive Income. The focus remains in four strategic areas (i) implementing the coct-cutting program with ultimate goal of saving €6 mil in 12 months, (ii) regaining market share in the domestic market, (iii) following and exploiting the increased growth rates at Africa and N. America and (iv) further de-escalation of bank debts at under-€100mil levels through strict cash-flow management throughout the group.

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