GR. SARANTIS GROUP - FINANCIAL RESULTS 1ST HALF 2005

PRESS RELEASE

• Consolidated financial results in 1st half 2005 were in line with Management’s forecasts.
• Foreign markets posted higher growth rates as compared to the domestic market, raising their contribution in total consolidated turnover.
• Sarantis Group utilizes its portfolio of own brands and products, with major growth drivers the sectors of mass-market cosmetics, as well as household products.

• According to IFRS, Sarantis Group posted a turnover growth of 13%.

• As far as business activity is concerned, mass-market cosmetics and household products were the major growth drivers both in Greece and Eastern Europe. The Group aims at a greater penetration of own product portfolio in the above markets.

• During the 1st half 2005, Sarantis Group achieved a significant improvement in gross profit margin. The above improvement is considered as sustainable in the following quarters, due to a more efficient product mix targeted by Sarantis Group.

1. Financial Results of Sarantis Group according to IFRS   During the first half 2005, Sarantis Group demonstrated double digit turnover growth, taking advantage of a robust business performance in mass market cosmetics and household products, as well as due to the satisfactorily growing international markets.   It is noted that EBITDA growth by 10.89% did not follow closely the turnover growth, due to investment and advertising expenditures in Eastern European markets. More specifically, the higher by 22.18% promotion and marketing expenses (from EUR 28.32 million in 1st half 2004 to EUR 34.60 million in 1st half 2005) was a necessary factor for the Group’s stronger penetration in the international markets.   It is also underlined that the recent debt restructuring on Group basis – short-term debt was converted into long-term debt – should further contract the effect of interest expenses on Group’s profitability on consolidated basis. The rise in long-term debt (from EUR 92.25 million in 1st half 2004 to EUR 96.21 million in 1st half 2005) was offset by a lower short term debt (from EUR 10.47 million into EUR 8.79 million), with financial expenses settling at EUR 1.24 million versus EUR 1.07 million in 1st half 2004.   On bottom line basis, Sarantis Group achieved an especially positive performance, as profit before taxes rose by 13.10% as compared to 1st half 2004, to EUR 12.73 million, whereas profit after taxes and minorities reached EUR 9.85 million, rising by 15.11% as compared to the same period last year.   The favorable developments during the first half included the higher by 7.3% trade debtors, which rose at a slower pace as compared to Group’s turnover growth. Furthermore, it is important to note that the rise of inventories (from EUR 32.67 million in 1st half 2004 to EUR 38.87 million in 1st half 2005) should be mainly considered as seasonal.

Consolidated Turnover Breakdown

Consolidated EBIT Breakdown
Per Business Activity

Consolidated Turnover Breakdown 
per Geographic Market




Consolidated EBIT Breakdown
Per Geographic Market

GR. SARANTIS GROUP - FINANCIAL RESULTS 1ST HALF 2005 (172.2KB)