PRESS RELEASE
REGULAR GENERAL SHAREHOLDERS MEETING OF GR. SARANTIS S.A. ON 12/05/05
International Financial Reporting Standards (IFRS)
GR. SARANTIS Group of Companies
Today, May the 12th 2005, the Regular General Shareholder Meeting of Gr. Sarantis S.A. took place in Marousi. During the meeting the following were decided:
A new synthesis of the Sarantis Board of Directors was determined during the meeting. More specifically, Mr. George Koletsos, currently the General Manager of Gr. Sarantis S.A., was elected as the new member of the Board of Directors. Mr Koletsos will replace Mr. Pantazis Sarantis, who was resigned from a member of the Board of Directors.
Moreover, during the meeting the distribution of a dividend of €0,10 cents per share for the fiscal year 2004 was approved. Gr. Sarantis Group’s share will trade ex-dividend on the ASE as of Wednesday 1st June 2005. Payment date for the dividend will be Tuesday the 14th of June 2005.
During the meeting the Management presented the Group’s financial statements under the IFRS standards for the fiscal year 2004. In addition the Management gave guidance for the first quarter of 2005 financial results. The statements for the first quarter 2005 will be presented according to IFRS and will thus reflect all the effects from the adoption of the new standards on the asset structure, the financial position, and the financial results of the Group. SARANTIS will release its financial results for the first quarter 2005 on May 30th , 2005.
Specifically, Management expects sales to increase by approximately 10% for the first quarter 2005, while net profits to be substantially higher from management’s expectations as well as higher from the same period last year, which was a strong quarter for the group due to the Olympic Games preparation.
During the meeting it was reported that GR. SARANTIS Group adopted the International Financial Reporting Standards (IFRS) for the compilation of its financial statements, from January 1st, 2005. Previously, the Group had been applying the Greek Generally Acceptable Accounting Principles (GAAP). The above transition, from the Greek GAAP to the IFRS, was made in the financial statements of 2004. SARANTIS applied best international practices, adopting all standards, including the International Accounting Standard 39 from 1/1/2004. It is noted that the Company’s certified auditors-accountants have not audited yet the consolidated financial statements of 2004, compiled according to the IFRS.
The transition into the new accounting standards does not affect the Group’s business strategy and corporate affairs management. Should any effect arise on the short-term financial targets for the years 2005 and 2006, it will be disclosed at the announcement date of the first quarter 2005 financial results. However, any such effect should be expected of limited importance.
As far as the financial year 2004 is concerned, the adoption of IFRS had limited effect on financial results. However, it had significant effect on the asset structure and the financial position of GR. SARANTIS Group. The effects on the consolidated financial statements can be summarized as follows:
MAJOR EFFECTS
ON THE CONSOLIDATED FINANCIAL RESULTS OF 2004
- Net Profit before taxes settled at EUR 29.503 million according to the IFRS, versus EUR 29.333 million according to the Greek GAAP, demonstrating an increase of 0.58%. The same case applied for the Net Profit after taxes and minority interests (EUR 16.980 million according to IFRS, versus EUR 16.735 million according to the Greek GAAP, implying an increase of 1.46%).
- Consolidated turnover remained unchanged.
- Extraordinary and Non Operating Results, which had been recorded at EUR 2.4 million according to the Greek GAAP, were recorded at zero level according to the IFRS. The above amount was allocated accordingly to the following accounts: cost of goods sold, other operating income, operating expenses, and financial income/expenses.
- EBIT margin settled at 13.19% according to the IFRS, as compared to 13.20% according to the Greek GAAP.
- EBITDA margin settled at 14.61% according to the IFRS, as compared to 14.80% according to the Greek GAAP.
MAJOR EFFECTS ON THE CONSOLIDATED ASSET STRUCTURE
AND THE FINANCIAL POSITION OF YEAR 2004
- Net worth decreased by EUR 32.6 million to EUR 52.0 million versus EUR 84.6 million according to the Greek GAAP.
- Fixed assets appreciated by EUR 14 million settling at EUR 49.7 million, versus EUR 35.7 million according to the Greek GAAP, due to valuation of Group’s real estate assets at fair value.
- Participation and Securities decreased by EUR 27.2 million, due to valuation of investments in Duty Free Shops and Multirama at market value.
- The largest part of Intangible Assets was written off. The relevant amount of EUR 9.6 million affected negatively the Net Worth.
- Other adjustments made according to the IFRS, related to the following:
| 5.1) provision for doubtful and bad customers-debtors, 5.2) provision for decline in value of inventory, 5.3) provision for retirement benefits (based on actuary study) and deferred taxes, 5.4) profit or loss from sale of securities, which affected financial results, 5.5) investments in Duty Free Shops and Multirama were transferred from the account “Investments in Affiliated Companies” to the account “Financial Elements”, 5.6) effect on shareholders’ funds deriving from valuation of securities as of year-end, 5.7) transfer of the 1/5 of losses from the valuation of securities in the 2000 financial year from the results to the shareholders equity, 5.8) appropriate account of the advertising contracts 5.9) appropriate accounting of leasing, 5.10) recording in financial results, of non-operating taxes and personnel’s fees from profit appropriation, 5.11) recording of Group’s gross income taxes, and finally 5.12) recording of minorities in the after taxes results of subsidiaries. |
Contact
SARANTIS Group
26, Amaroussiou - Halandriou Street
151 25 Maroussi, Athens, Greece
Tel: +30 210 6173000
Fax: +30 210 6197081
e-mail: group-info@sarantisgroup.com
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