KLEEMANN group continues its profitable course by concluding the six-month period with improved economic “performance” in comparison with the first quarter. Significantly increased international sales contribute to this fact, as they have almost covered the loss caused by the fall in the domestic market.

KLEEMANN’s objective of transforming into a mainly exporting business is largely achieved, as the turnover coming from abroad amounts in the six-month period of 2011 to 65.4% of its total turnover from 50.6% in the relative last year period. The above performance solidifies that extraversion is the main pillar of the Group's growth and dominant element of its strategy. In this context, KLEEMANN proceeds to the creation of a production base in China, a total investment that amounts 2 mln euros, aiming at the penetration of the wider area of Northeast Asia and Oceania.

Financial figures of the six month period

As regards financial figures, turnover of the group amounted to 44,20 mln euros from 44,43 mln euros in the first half year period of 2010 and showing a marginal drop of 0,5%, a particularly encouraging fact when taking into account that in the first quarter of the year it was down by 8,3%. The group’s gross margin in the second quarter of 2011 amounts to 32,5% improved in comparison with the first quarter which amounted to 29,8%. Cumulatively, in the six-month period it amounts to 31,3% and is reduced in comparison with the relative last year period (34,2%). This reduction is due to higher raw material prices, the corresponding pricing policy that the company applies, as well as the intensification of efforts to penetrate foreign markets.

Similarly affected is the net profit margin, although compared to the relative last year period it includes high provisions for doubtful debtors amounting to 1,3 mln euros, as well as high one off expenses amounting to approximately 0,4 mln euros that were realized for the growth and strengthening of representation offices abroad. As a result, the consolidated profit before tax in the examined period amounted to 1,7 mln euros, reduced by 45,7% in comparison with the first six month period of 2010. Earnings before interest, tax and amortization (EBITDA) totaled 3.4 mln euros, compared to 4,9 mln euros in the relevant period of 2010, reduced by 29,5% while Profit after tax and non controlling interests amounted to 0,5 mln euros, from 1,1 mln euros in 2010. The positive operating cash flow of the group which amounts to 4,8 mln euros further enhances its liquidity, which – at the current financial conjuncture – consists of a strong competitive advantage versus the competition, as it allows the group its smooth operational growth.

Regarding the end of the year, the management of KLEEMANN expresses the belief that the consolidated turnover will even marginally be higher than 2010, while the consolidated results will be positive. PRESS RELEASE, Kilkis, August, 30th 2011