Financial Results 1Q 2010
The first quarter of the current year found KLEEMANN group increasing its share in the Greek market, strengthening its presence abroad, reducing debt and launching new products.
Group sales in the Greek market during the first quarter of 2010 showed a 8.9% decline over the corresponding period of 2009, significantly lower than the reduction noted in the lifts market for the same time, thus marking an increase in the market share of KLEEMANN in Greece.
At the same time, promotion intensification and penetration activities in new and existing markets resulted in a moderate decline in sales abroad (2.7% compared with first quarter of 2009). Furthermore, during the quarter of 2010, the group succeeded in improving gross margin profitability, reducing borrowing and also maintaining liquidity at high levels.
Specifically, consolidated sales in the quarter of 2010 stood at euros 21.79 million against euros 23.17 million in the corresponding period in 2009, a decrease of 6.0%. Despite falling sales, gross profit of the group increased by 6.8% from euros 7.12 million to euros 7.60 million, reflecting growth in productivity achieved at all levels. Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) showed a percentage decrease of 16.3% (from euros 3.05 million to euros 2.55 million). Similarly, profit after tax and minority interests amounted from euros 1.58 million to euros 1.35 million, reduced by 14.6%.
A very positive contribution to the financial figures of the group was made by the Greek subsidiary KLEFER, whose profits before tax increased by 40.1% in the first quarter of 2010. Also, the subsidiaries ASANSOR and LIFT RO, which operate in the Turkish and Romanian market respectively, contributed significantly to the positive results of the group either by increased sales or by increased profitability. The positive performance of these subsidiaries shows that these markets are entering into a phase of gradual development, and also that the group follows a successful business strategy in these specific countries.
Finally, the creation of innovative new products, such as the series «KLEEMANN Design», which is the result of collaboration with the well known industrial designer Andreas Zapatinas, and several other new products are expected to further strengthen sales in the global market. The competitive advantages of KLEEMANN group, such as high quality of products and services, consistency towards the customer, product innovation and high efficiency- which allows having a competitive product- are a powerful defense mechanism against significant drop in demand in the lifts market.
It must be noted that for fiscal year 2009, the administration of KLEEMANN will propose to the ordinary general meeting of shareholders, a dividend of 0.12 euros per share, which according to the share price at 31.12.2009 creates a dividend yield equal to 5.2%.
KLEEMANN exploits the opportunities that arise in adverse economic conditions and makes use of its competitive advantages to further enhance its position in both Greek and international markets.