Financial Results - 1st Half of 2004

Strong growth in sales and profits present the consolidated financial statements of the Sarantis Group for the period of JAN – JUNE 04 versus JAN – JUNE 03.

More specifically, the Group΄s net sales reached 117,4 mio €, increased by 8,5% versus the same period in 03, which have amounted 108,2 mio €.

Net profits before taxes and after minorities have reached the level of 10 mio €, first semester 2004, vs 7,4 mio € in 03, showing an increase of +35%.

The above results do not include substantial new business and are considered as mainly organic growth. They are also in line with management’s expectations for the whole fiscal year of 04.

Concerning the break down of the Group΄s net sales, it shows a remarkable balance between Greece and E. Europe with a positive trend towards the latter, as expected by management.

TABLE 1

 
The major highlight of the above table is the strong growth of the Group in the three major markets in E. Europe: Poland, Romania and Serbia.

Concerning the Group΄s business units, the two major divisions of Sarantis have demonstrated equally strong growth of 9%. The best performing business unit of the first semester of 2004 is the luxury cosmetics division, which has experienced double digit organic growth.

TABLE 2

EBITDA has remained stable for the first half of 04 compared to the previous year reaching the level of 18.7 mio €. This development was expected by management and it is due to strong advertising expenses in E. Europe, which aim to market share gains in both the cosmetics and the household business units.

The above results are considered satisfactory. The Sarantis Group yearly results for 04 are expected to reach the level of 246 mio € in sales and net profits before taxes and after minorities of 21 mio € increased by +6% and +38% respectively vs 03.