ATHENS, May 28, 2004 (PRIMEZONE) -- Hatzioannou, the leading European group in second skin manufacturing and retailing, announced its first quarter 2004 consolidated results.
Hatzioannou shares are listed on the Athens Stock Exchange (Reuters:HADr.AT) (Bloomberg:HATZK GA) and also are traded on the Deutsche Borse.
Group Financial Highlights
* Total revenues reached EUR 26 million in 1Q04 from EUR 26 million in 1Q03, reflecting primarily the sale of subsidiary business units, such as Ergo Textile and Iliofin, that contributed in total EUR 5.6 million in 1Q03. On the other hand, Unique Commerce Ltd, the group's retailing subsidiary in the UK was included for the first time in the group's accounts. Furthermore, on a like basis, the group revenues increased by 12.5%.
* EBITDA increased by 18% in 1Q04 from EUR 5.9 million to EUR 6.9 million, as a result of a strategic shift to the core business that provide also higher margins.
* Earnings before tax increased by 34%, from EUR 2.1 million in 1Q03 to EUR 2.8 million in 1Q04. Increased earnings was the net result of capital gains recorder by the Holding company (due to the flotation of Sprider) and losses of the Virgin subsidiary included for the first time in the consolidated accounts.
* Earnings after tax decreased slightly, due to the combined effect of increased taxation on profits of the Holding company and losses from Virgin.
* Total net debt was reduced by 36% to EUR 48.6 million from EUR 76.2 million over the same period last year, as a result of the sale of two subsidiaries, increased operating cash flow and a share capital increase in Sprider due to the flotation of the company in the Athens Exchange.
Group: Financial Results
in ml EUR 1Q04 1Q03 2003
Revenues 26.0 26.1 122.3
EBITDA 6.9 5.9 27.2
EBT 2.8 2.1 13.2
EAT after minorities 1.9 1.9 7.4
EPS basic & diluted 0.04 0.05 0.18
Fixed Assets, net 47.4 63.4 45.9
Cash & Marketable Securities 6.7 5.9 14.8
Receivables 40.7 42.1 44.8
Inventory 45.6 54.8 41.0
Total Assets 169.4 189.7 169.4
Total Debt 55.3 81.6 63.5
Long Term Leases (off B/S item) 32.0 10.5 35.1
Total Shareholders' equity 56.5 61.3 60.2
Vertical
* Revenues reached EUR 14.6 million in 1Q04, an increase of 6% over the same period last year (on a comparable basis), despite the pressure on prices and adverse exchange rates environment.
* EBITDA increased by 8% (on a comparable basis) in 1Q04 from EUR 3.5 million to EUR 3.8 million. The increase was mainly the result of increased revenues and margins.
* Earnings before tax decreased by EUR 0.1 million from EUR 1.4million in 1Q03 to EUR 1.3 million in 1Q04, due to increased financial lease expenses.
* Net debt was reduced by EUR 1.6 million to EUR 37.6 million from EUR 39.2 million in 1Q03, as a result of improvements in working capital management and the sale of the dying & finishing plant in northern Greece.
Vertical: Financial Results
in ml EUR 1Q04 1Q03 2003
Revenues 14.6 13.8 57.0
EBITDA 3.8 3.5 13.9
EBT 1.3 1.4 4.0
EAT after minorities 1.3 1.4 4.0
EPS basic & diluted 0.07 0.08 0.23
Fixed Assets, net 30.0 33.1 31.6
Cash & Marketable Securities 1.9 1.9 3.7
Receivables 26.3 25.3 27.5
Inventory 17.6 17.1 17.5
Total Assets 91.3 87.8 94.1
Total Debt 37.6 39.2 40.1
Long Term Leases 7.7 10.5 8.1
Total Shareholders' equity 40.5 35.5 39.7
Note: 1Q03 figures for Vertical are stated on a proforma basis to exclude the effect of the dying and finishing business that was sold at the end of 2003.
Sprider
* Revenues reached EUR 10.3 million in 1Q04, an increase of 17% over the same period last year. On a like for like basis, the increase in revenues was 15%, while an additional 2% increase was due to new stores.
* EBITDA increased by 83% in 1Q04 from EUR 0.7 million to EUR 1.3 million mainly due to increased gross margins.
* Earnings before tax increased from EUR 0.1 million in 1Q03 to EUR 0.2million in 1Q04. It should be noted that profitability in the first quarter is low due to the inclusion of a two-month sales period.
Sprider: Financial Results
in ml EUR 1Q04 1Q03 2003
Revenues 10.3 8.8 58.0
EBITDA 1.3 0.7 12.5
EBT 0.2 0.1 8.9
EAT after minorities 0.1 0.1 4.0
Fixed Assets, net 14.7 22.8 13.2
Cash & Marketable Securities 1.7 1.6 9.8
Receivables 16.9 10.0 19.0
Inventory 22.8 26.3 20.7
Total Assets 59.0 62.8 49.6
Total Debt 3.3 24.1 14.0
Long Term Leases 24.3 0.0 27.0
Total Shareholders' equity 30.5 17.8 20.0
Virgin Ware
* Revenues reached EUR 1.1 million in 1Q04, compared to EUR 0.5 million in 1Q03. Figures are not comparable due to the expansion of the retail business that begun at the end of first quarter in 2003.
* Losses for the 1st quarter amounted to EUR 1.2 million compared to losses of EUR 1.0 million in 1Q03.
Virgin Ware: Financial Results
in ml EUR 1Q04 1Q03
Revenues 1.1 0.5
EBITDA -0.8 -0.7
EBT -1.2 -1.0
Fixed Assets, net 1.7 0.4
Cash & Marketable Securities 0.6 0.0
Receivables 1.8 0.6
Inventory 1.3 0.8
Total Assets 12.2 9.2
Total Debt 14.0 14.5
Long Term Leases 0.0 0.0
Total Shareholders' equity -14.4 -7.1
Operational Highlights
* On March 2004, Virgin ware, the group's 100% UK subsidiary, opened a new store in Croydon, and another store in Guildford, reaching in total 14 stores in England.
* On February 2004, Sprider completed successfully its IPO on the Athens Stock Exchange, in order to expand at a faster rate, by offering 25% of its stock, out of which 21% belonged to Hatzioannou Holdings. The group now comprises of three main subsidiaries:
* Vertical (100%) with the design, production and distribution of panty hose, socks, seamless products and lingerie underwear.
* Sprider (59%) with a retailing chain of 22 stores in Greece.
* Virgin ware (100%) with retailing chain of 14 stores in the UK.
Virgin ware is being consolidated to the group for the first time in the 1Q 2004.
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This information is also available on Hatzioannou's website at www.hatzi.gr
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