Hellenic Fabrics turnover improves in Q1 2006

30 May '06

3 min read

The Group of 'HELLENIC FABRICS S.A.” for the first quarter to 2006, keeps on maintaining its profitability and improving its capital structure despite intense competition, which in combination with the rise of the euro versus the US dollar, influences European export oriented companies negatively.

In the financial statements of the first quarter of 2006 published on 31st Dec, 2005 consolidated turnover amounted to € 24.5 mln, improved by 0,90 percent in comparison with the correspondent period of 2005, and originates by 75 percent from exports. In line with the application of its strategy, the company continues to broaden its customer base and to expand sales to new markets.

As in 2005, commercial policy focused on the promotion of new and innovative fabrics of a high sale price, whilst limiting the production of others that did not contribute a satisfactory profit margin.

Simultaneously, it proceeded to increased sales of ginned cotton abroad that do not share similar profit margins as that of denim fabrics. Consolidated profit before tax amounted to € 1.57 mln from € 2.61 mln in the correspondent period of 2005, showing a decrease of 39,81 percent, while profit after tax and minority rights amounted to € 1.00 mln from € 1.85 mln in 2005, showing a decrease of 45,72 percent. Profit before tax, interest and depreciation (EBITDA) amounted to € 3.77 mln, thus 15,40 percent of turnover, reduced by 21.86 percent.

Moreover, at a consolidated basis, total shareholders' equity amounted to € 84.43 mln from € 82.15 mln on 31st Dec, 2005. The consolidated positive operating cash flow amounting to € 6.87 mln, assisted liquidity and was used for the self-financing investments in production activities by € 1.02 mln and for the reduction of total loans outstanding by € 6.21 mln. Finally, the ratio "Price to book value" ratio (P/BV) amounted to 0.57.

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