Lower denim fabric sales at HELLENIC FABRICS
HELLENIC FABRICS S.A. announces financial results twelve-month period 2009. 2009 was a year below expectations for group's sales and results, due to the persisting international financial crisis that affected the markets in which it is active.
The group concentrated mainly to lowering the production cost and to create cash inflows and working capital reduction through significant decrease of inventories and receivables, aiming at securing adequate cash flow.
The group's turnover for continuing operations, was reduced by –19.6% to the amount of €64.21 mln against €79.85 mln in 2008, mainly attributed to lower denim sales.
The parent company's turnover amounted to €46.86 mln against €63.27 mln in previous year, decreased by –25.9%, mainly affected by lower denim fabric sales, besides the fact that the company did not lose market share to competitors.
The gross profit margin for the group amounted to €-0.04 mln against €5.70 mln in 2008, mainly affected by the parent company's denim sector.
The gross profit margin of the parent company amounted to €-1.93 mln, showing a reduction against last year, where the gross profit margin amounted to €4.09 mln.
The reduction of the group's gross profit margin resulted to a proportional reduction of the group's EBITDA, from €0.80 mln in 2008 to €-6.40 mln in 2009. The amount includes one-off expenses for group's restructure that amounted in 2009 to €4.80 mln.
The parent's EBITDA amounted to €-8.27 against €-3.43 in 2008.
The parent company's financial results before taxes from the continuing operations amounted to €-12.32 mln from €-7.75 mln last year, while the group's financial results before taxes from the continuing operations amounted to €-13.52, against €-9.55 in 2008.
During the last quarter of 2009, sales of previous year's inventories were realized that resulted in positive cash flow, which though have negatively affected the results.
Consolidated net cash from operating activities during 2009 reached the amount of €3.20 mln against €-6.78 in 2008.
The financial year ended on 30.06.2009 for the subsidiary THESSALY COTTONG GINNING CO. S.A. resulted a profit before taxes of €310.82 thousand, while the EBITDA amounted to €1,590.16 thousand.
Positive were also the results of 2009 for the company BIODIESEL S.A., in which HELLENIC FABRICS S.A. participates by 25%. The profit before taxes reached the amount of €1,204.38 thousand.
The significant increase of new orders during the first months of 2010 resulted in an improvement of the sales turnover by 25% against the relevant period of last year.
As part of a strategic alliance with CRESCENT BAHUMAN LIMITED, based in Lahore, Pakistan, a new company under the name HELLENIC CRESCENT LTD was established based in the U.K. Through this partnership, announced by the company yesterday, HELLENIC FABRICS S.A. aims at increasing its sales by becoming more vertically integrated through offering denim garments. In that way,the group will target new market segments, and at the same time enhance its competitiveness and growth potentials in the world denim market.
HELLENIC FABRICS S.A.