The consolidated turnover of the Group of MOTODYNAMICS S.A. reached 45.8 million Euros reduced by 6.5% compared to the corresponding period of the previous year. Sales reached 43.1 million Euros, while sales abroad (Rumania-Bulgaria) reached 2.7 million Euros. The Group gross profits ranged on the same levels as the previous year, reaching 9 million Euros, increasing the profit margin by 1.5 percentile unit. The increase of administrative expenses, aimed at building the necessary infrastructure for the Group course of development, led to a 17% reduction of earnings before interest, taxes, depreciation and amortization (EBITDA) reaching 2.9 million Euros. The increased financial expenses further limited the net profit after taxes and minority interests to 1.5 million Euros, thus reduced by 33.8% compared to the corresponding semester of 2007.
Analysing the Group activities, in the motorcycle sector, sales reached 27.1 million Euros, reflecting 59.2% of the total turnover. The intensified credit crisis that led to a reduction in the demand for consumer goods, combined with transportation difficulties, influenced motorcycle sales that were reduced by 12% in comparison to the same period of the previous year. The gross profit margin was 16%, compared to 14.4% of the corresponding period of the previous year.
The Group sales in the marine sector reached 11.2 million Euros, reflecting 24.5% of total sales. In comparison to last year sales, they increased by 2%. The gross profit margin remained stable at 21.3%. In the Supplementary products which includes tyres, accessories, spare parts, lubricants and services, the Group sales reached 7.5 million Euros, achieving a 3.8% increase and reflecting 16.3% of the total turnover. The gross profit margin reached 31.2% compared to 30.8% of the same period of the previous year.
The Managing Director, Mr. Sotiris Hatzikos, stated: While strengthening our leading position in the market, during the 2nd quarter we managed to moderate the lag of sales that took place in the first months of the year and to achieve improved gross profit margins. The decline of operational profitability due to the increase of administrative expenses is the result of building the necessary infrastructures in order to meet our strategic goals, on which we will persist despite the temporary market crisis. At the same time, we are focused on the increasingly effective management of our working capital and of our cash flows in general, resulting to the limitation of financial expenses.