THESSALONIKI WATER AND SEWAGE COMPANY SA
The annual Information of Analysts
2008 ended with highly positive results for EYATH SA, which witnessed a significant surge of its profits as well as of its turnover, compared to 2007.
In particular, the company's turnover amounted to EUR 75.919 million in 2008 compared to EUR 70.1 million in 2007, that is, an increase of 8.3%. Gross profit amounted to EUR 31.226 million compared to EUR 24.343 million in 2007, that is, an increase of 28.28%, while pre-tax profits amounted to EUR 21.199 million last year, an increase of 25.81%. Earnings per share amounted to EUR 0.4168, an increase of 21.62% compared to EUR 0.3427 in 2007. Cash holdings in 2008 amounted to EUR 12.735 million.
This is what stated today the Chairman and Managing Director of EYATH, George Skodras, while announcing the company's financial results for the financial year of 2008, during the annual Information of Analysts, held in the Thessaloniki Stock Exchange Centre.
According to Mr. Skodras, EYATH records now the 4th consecutive year of increased sales and profitability and the first year of reduction in costs, while it has broadened at the same time its clientele. The strengthening of profitability results from the rationalization and the efficient reduction in costs and no longer from the containment of costs. Thus the cost of sales stood at EUR 44.693 million in 2008, compared to EUR 45.757 million in 2007, a decrease of 2.33%. In particular the cost of maintenance of the water supply and sewerage networks and facilities in 2008 has dropped by 18.32%, compared to the cost in 2007.
The cost reduction was achieved through the continued rationalization of expenses and the reduction of production costs. Thus, there was a major reduction in all the tariffs of operation, maintenance and repair of the networks and facilities. As a result of the administration's efforts, the costs of third parties declined by 2.7%, despite the very significant increase of 12.8% in electricity costs. The company has not changed its policy to cut down the production costs.
Similarly, comparisons to the financial results of the four-year period 2004-2008 act as a catalyst. Specifically, turnover in this period has increased by 37.45%, gross profit increased by 39.66%, while pre-tax profits have increased by 156.59%. Accordingly, the profits after tax more than tripled (237.54%).
The Administration guarantees the strong profitability of the company and the financing of its investment program by using the same resources without delay or restrictions.
FIRST QUARTER OF 2009
Meanwhile, the current financial year started with very positive signs, since both the profitability and the turnover of the listed company of Northern Greece have witnessed a tremendous growth over the first quarter of the current financial year.
In particular, pre-tax profits amounted to EUR 7.519 million in the first quarter of 2009, rising to 65.65% compared to the corresponding period last year, while profits after tax amounted to EUR 5.791 million, that is, an increase of 63.68%. Gross profit has increased by 24.56% compared to the first quarter of 2008 and stood at EUR 10.006 million, with the earnings per share amounting to EUR 0.1595, namely, an increase of 63.68%.
Meanwhile, sales of the listed company of Northern Greece stood at EUR 20.325 million, having increased by 10.38% compared to last year. Cash holdings increased by 8.99% and rose to EUR 15.195 million.
These financial performances were achieved despite the freezes on tariffs and their reduction for 400,000 customers and for about 5,000 families with many children which is in effect since 1/1/2009.
Finally it should be noted that EYATH expects additional revenue from the further expansion of its area of activity and the new activities it steadily develops. The policy of cost containment and cost reduction vigorously continues.
TARIFF REDUCTION
In this context, and given the reorganization of EYATH, the company's Administration has decided to reduce the water supply tariff for its residential consumers (households).
Specifically, the proposed regulation involves a reduction of 4% in water supply tariff in the third four-month period of 2009 for the first three classes of consumers (low- and middle- income households). The regulation covers 88% of the company's customers, that is, approximately 400,000 residential customers (households) in the urban area of Thessaloniki, while it is not expected to substantially affect its financial performance. By the said decision EYATH is perfectly in line with the government?s policy and in particular with the policy of the Ministries of Economy & Finance and Development to assist low and middle incomers over the current period of international financial crisis.
In particular, the company's turnover amounted to EUR 75.919 million in 2008 compared to EUR 70.1 million in 2007, that is, an increase of 8.3%. Gross profit amounted to EUR 31.226 million compared to EUR 24.343 million in 2007, that is, an increase of 28.28%, while pre-tax profits amounted to EUR 21.199 million last year, an increase of 25.81%. Earnings per share amounted to EUR 0.4168, an increase of 21.62% compared to EUR 0.3427 in 2007. Cash holdings in 2008 amounted to EUR 12.735 million.
This is what stated today the Chairman and Managing Director of EYATH, George Skodras, while announcing the company's financial results for the financial year of 2008, during the annual Information of Analysts, held in the Thessaloniki Stock Exchange Centre.
According to Mr. Skodras, EYATH records now the 4th consecutive year of increased sales and profitability and the first year of reduction in costs, while it has broadened at the same time its clientele. The strengthening of profitability results from the rationalization and the efficient reduction in costs and no longer from the containment of costs. Thus the cost of sales stood at EUR 44.693 million in 2008, compared to EUR 45.757 million in 2007, a decrease of 2.33%. In particular the cost of maintenance of the water supply and sewerage networks and facilities in 2008 has dropped by 18.32%, compared to the cost in 2007.
The cost reduction was achieved through the continued rationalization of expenses and the reduction of production costs. Thus, there was a major reduction in all the tariffs of operation, maintenance and repair of the networks and facilities. As a result of the administration's efforts, the costs of third parties declined by 2.7%, despite the very significant increase of 12.8% in electricity costs. The company has not changed its policy to cut down the production costs.
Similarly, comparisons to the financial results of the four-year period 2004-2008 act as a catalyst. Specifically, turnover in this period has increased by 37.45%, gross profit increased by 39.66%, while pre-tax profits have increased by 156.59%. Accordingly, the profits after tax more than tripled (237.54%).
The Administration guarantees the strong profitability of the company and the financing of its investment program by using the same resources without delay or restrictions.
FIRST QUARTER OF 2009
Meanwhile, the current financial year started with very positive signs, since both the profitability and the turnover of the listed company of Northern Greece have witnessed a tremendous growth over the first quarter of the current financial year.
In particular, pre-tax profits amounted to EUR 7.519 million in the first quarter of 2009, rising to 65.65% compared to the corresponding period last year, while profits after tax amounted to EUR 5.791 million, that is, an increase of 63.68%. Gross profit has increased by 24.56% compared to the first quarter of 2008 and stood at EUR 10.006 million, with the earnings per share amounting to EUR 0.1595, namely, an increase of 63.68%.
Meanwhile, sales of the listed company of Northern Greece stood at EUR 20.325 million, having increased by 10.38% compared to last year. Cash holdings increased by 8.99% and rose to EUR 15.195 million.
These financial performances were achieved despite the freezes on tariffs and their reduction for 400,000 customers and for about 5,000 families with many children which is in effect since 1/1/2009.
Finally it should be noted that EYATH expects additional revenue from the further expansion of its area of activity and the new activities it steadily develops. The policy of cost containment and cost reduction vigorously continues.
TARIFF REDUCTION
In this context, and given the reorganization of EYATH, the company's Administration has decided to reduce the water supply tariff for its residential consumers (households).
Specifically, the proposed regulation involves a reduction of 4% in water supply tariff in the third four-month period of 2009 for the first three classes of consumers (low- and middle- income households). The regulation covers 88% of the company's customers, that is, approximately 400,000 residential customers (households) in the urban area of Thessaloniki, while it is not expected to substantially affect its financial performance. By the said decision EYATH is perfectly in line with the government?s policy and in particular with the policy of the Ministries of Economy & Finance and Development to assist low and middle incomers over the current period of international financial crisis.