Return to Profitability

Return to profitability for the Group of KLEEMANN in the nine-month period of the current fiscal year, with the positive figures of the second and third quarter outweighing the negative performance of the first quarter. More specifically, during the third quarter the consolidated turnover amounted to 22,8 mln € from 22,6 mln € in the third quarter of 2011, while the profit before tax amounted to 1,4 mln € from 1,3 mln € in 2011.

As a result, the profit before tax for the nine-month period amounted to 0,8 mln € from 3,0 mln € in 2011. It should be noted that the first quarter of 2012 was the first time that the Group presented negative results, and the return to profitability is the result of implemented cost-reducing actions and intense efforts to internationalize the Group realized by the Management in the latest years.

Extraversion brought once again an increase to the Group’s international sales percentage, which in the nine-month period amounts to 76% from 67% in 2011, while the Group is now present in more than 85 countries versus approximately 60 in the respective period of 2010 and 65 in 2011.

Concerning elements of the balance sheet, the Group has an excellent capital structure, as the operating cash flow of the nine-month period was positive and amounted to 8,7 mln € from 4,6 mln € in the relevant last year period. Net bank loans of the Group are particularly low and amount to merely 5,6 mln €, as the Group operates with its own funds, has a healthy growth and limited financial exposure.

The gross margin of the Group amounted to 30,2% from 30,7% in the relevant last year period, while EBITDA amounted to 3,1 mln € versus 5,5 mln € in 2011, and the result after taxes and minority rights amounts to -1,0 mln € from 1,1 mln € in 2011. It should be noted that the result is negatively affected by high non-recurring costs of approximately 0,6 mln € incurred for the development and support of representative offices abroad, the loss of 0,8 mln € coming from the newly created subsidiaries in the United Kingdom and China, negative exchange rate differences from the Turkish subsidiary of 0,2 mln € as opposed to positive exchange rate differences of 0,8 mln € and finally provisions for doubtful debtors amounting to 2,5 mln € versus 1,9 mln € in the nine-month period of 2011. The profit before tax of the Group without the effect of the above, would be 3,8 mln € versus 3,0 mln € in the respective period of 2011.

Based on the aforementioned, as well as the continuous effort to penetrate new markets and increase international sales, the management of Kleemann expects positive results in the fourth quarter of 2012 as well, while the cash funds will continue to be maintained at high levels.