Orphanides: Profit Warning for six-month results 2007
27/8/2007 11:47
Further to the Company’s announcement dated August 16, 2007 and pursuant to the CSE and SEC Regulations and in order to fully inform the shareholders and the investing public in general, it is clarified that the results for the first half of 2007 are expected to be lower compared to the corresponding results of 2006. This drop is attributable to a number of factors that affected positively or negatively the Company. The factors are the following:
- Drop in the turnover. The refurbishment and improvement of the supermarkets in Larnaca, Paralimni and Zakaki affected negatively the Group’s sales. With the completion of the refurbishment, the aforementioned supermarkets will increase their sales significantly.
- Increase in promotion and advertising cost in order to deal with competition more effectively.
- Increase in finance cost as a result of the funding of the three-year Strategic Plan.
- Increase in gross profit despite the drop in turnover.
- Decrease in administrative expenses, which resulted from the detailed and close observance of the expenses.
- Drop in the turnover. The refurbishment and improvement of the supermarkets in Larnaca, Paralimni and Zakaki affected negatively the Group’s sales. With the completion of the refurbishment, the aforementioned supermarkets will increase their sales significantly.
- Increase in promotion and advertising cost in order to deal with competition more effectively.
- Increase in finance cost as a result of the funding of the three-year Strategic Plan.
- Increase in gross profit despite the drop in turnover.
- Decrease in administrative expenses, which resulted from the detailed and close observance of the expenses.
