FINANCIAL RESULTS 2Q
The first half of the year for the group of Kleemann was characterized with robust expansion in foreign markets, upward trend of sales of new products and plans for strategic growth moves. Indeed, during the second quarter of 2009, both the parent company and the group achieved better performance in economic terms than the first quarter, which demonstrates the effectiveness of actions implemented to address the economic crisis. Specifically, the lower than expected fall in turnover was due to the stabilization of sales in foreign markets, the result of efforts to penetrate new markets and the focus on production and marketing of new products. In markets such as Australia and Eastern Europe, the increase in sales was more than 30%, while in terms of new products and traded goods, such as mechanical lifts, escalators, parking systems, the flexy-lift and cabins for lifts for goods, there was a growth rate of 25% noted.
So, at a group level, turnover amounted to 47.97 million Euros, compared to 58.33 million Euros in the corresponding period of 2008, a decrease of 17.8%. The consolidated gross profit decreased by 19.5%, from 20.45 million Euros to 16.47 million Euros and consolidated profit before tax, interest and depreciation (EBITDA) decreased from 10.76 million Euros to 7.72 million Euros. The second quarter of 2009 in comparison with the first quarter, showed a clear improvement in gross margin by approximately 7 percentage points, mainly due to the de-escalation of raw material prices and the adaptation of costs to reduced sales. Similarly, the EBITDA margin improved from 13.1% in the first quarter of 2009 to 18.9% in the second quarter. Profits before tax in the first half of 2009 amounted to 5.72 million Euros versus 8.74 million Euros in the corresponding period of last year, a decrease of 34.5%, while profit after tax and minority rights decreased from 6.48 million Euros to 4.11 million Euros.
It should be noted that the financial data of the parent company in 2009 was burdened with an extra 325 thousand Euros due to an impairment of the value of the subsidiary MODA CABINA SA. Without this, the profit margin before tax of the parent would be improved by about 4%. In addition, in July, the parent company has reduced its short-term debt by 5.5 million Euros, or 55% while it paid its dividends for the fiscal year 2008 amounting to 2.84 million Euros.
With respect to the markets in which the subsidiaries abroad operate (Turkey, Serbia and Romania) the situation is difficult following the international financial crisis, which affected strongly the Balkan countries. Nevertheless, the growth dynamics of these markets is still apparent and the parent company continues to support its policies for its strengthening in these markets.
As noted by the management of Kleemann, for the second half of the year, there is cautious optimism about the prospects of the group since development actions are planned, both at a market and product level.