ACCORDING TO INTERNATIONAL FINANCIAL REPORTING STANDARDS
Sarantis Group’s management presented positive financial forecasts for the period 2005 – 2008 according to the International Financial Reporting Standards.
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More specifically, net consolidated turnover according to the International Financial Reporting Standards are expected to reach EUR 208.8 million in 2005, higher by 11.3% as compared to the financial year 2004. Furthermore, for the following three years, the management expects double-digit growth in consolidated turnover, which is expected to settle at EUR 291 million in 2008, higher by 39% as compared to financial year 2005.
Additionally, Sarantis’ management presented its financial forecasts for the Group’s earnings per share, which are expected to post impressive growth rates in the following three years. Specifically, profit after taxes and minorities are expected to reach EUR 17.01 million for 2005, and settle at EUR 24.53 million in the financial year 2008 (+44% as compared to 2005). Earnings per share will demonstrate a similar improvement, taking into consideration that no earnings dilution will occur along the above period.
The above prospects for Sarantis Group are due to the following factors:
The Group’s stable strategic growth, which is based on the company’s greater expansion in the Eastern Europe, and mainly in the markets of Turkey and Ukraine, as well as in the strong support of its own products.
The stronger gross profit margin resulting from improvement in all areas affecting the cost of goods sold.
Additionally, according to the estimates of Sarantis’ management, prospects for stronger demand of consumer products in Eastern Europe will remain strong over the following 5 years, and especially in countries, which recently joined or will join the European Union, and where Sarantis Group has established subsidiaries. At the same time, the management considers the Company’s expansion in the Russian market during 2006, without incorporating those prospects in the above-mentioned forecasts.
Finally, the management notes that the presented financial forecasts depict the Group’s activities in the markets of Turkey and Ukraine, whereas they do not reflect any acquisitions or additional geographic markets.