Financial Results Announcement - Fiscal Year 2002

PRESS RELEASE

Increase in sales volume by 18% and pre-tax earnings by 10% is disclosed in the consolidated results of Sarantis Group in 2002. 

Specifically, the net Group sales for 2002 amounted to Euro 219 million with respect to Euro 185 million in 2001, while the pre-tax earnings amounted to Euro 18.1 million with respect to Euro 16.4 million in 2001. The Group operating profits before depreciation (EBITDA) are also improved by 13% reaching Euro 35.6 million with respect to Euro 31.5 million in 2001. After deduction of the minority rights, Group earnings reached a total of Euro 11.9 million in 2002 with respect to Euro 12.7 million in 2001, namely reduced by 6%. Minority rights were increased by 72%, reaching Euro 6.2 million in 2002 with respect to Euro 3.6 million in 2001, due to results consolidation of the consortium with Estée Lauder for the entire year period in 2002 instead of the half year in 2001.

The results realised by Sarantis Group in 2002 were beyond Management forecasts as announced in last October anticipating net sales volume of Euro 218 million and pre-tax earnings of Euro 17 million.  

The main reasons for the better-than-expected performance of the Group with respect to the forecast may be summarised as follows:

First, the positive course of business of Pack Plast Poland corporation that was taken over in last April presenting losses of Euro 1.4 million in the first semester of 2002, which finally were converted into earnings amounting to Euro 400 thousand for the entire year.

Second, the very good course of business of the Group affiliates in Eastern Europe, producing results well beyond those anticipated in all markets.

Third, the better course of the Greek market during Xmas period, having a positive effect mainly on expensive cosmetics sales volume.

Last,  the great success of the new perfume “C THRU”, which was launched last October both in Greece and Eastern Europe had a very important part in the final results of Sarantis Group. “C THRU” sales exceeded by 40% the original forecast of the Management.

The forecasts of the Group for 2003 remain positive and will be announced by the end of March.