- Sales and EBITDA doubled in Q3 2006 compared to the same period 2005
- Corporate restructuring to further save administrative costs and taxes
- Lamda Detergent S.A. and Lamda Cosmetics S.A. will be merged in Q4, gains in time to market for cosmetics
- Acquisition of chemical terminal near Neochimiki logistics center
After the nine month period of 2006, the growth of Neochimiki is completely in line with its dynamic business plan. Sales are up more than 95% to Euro 183.24 mil. and EBITDA nearly 95% (Euro 38.29 mil.) compared to 9M 2005, and net profit after tax increased 625% (Euro 63.61 mil.). In light of this continuously positive corporate development, the company also reports accelerated growth rates concerning sales and operating profit in the third quarter when compared to the first six months of 2006.
Among other factors, two corporate divisions were responsible for the growth: First, Paints, where a second factory started its operation in September 2006 with Celanese-related business - Neochimiki took over the Celanese business of producing raw materials for the production of paints and lacquers for the Greek and Southeast-European markets in early 2006. Second, Plastics, where Neochimiki has teamed up with Lukoil for the distribution of chemicals in the Greek home market.
The management has also decided to restructure the company. In the past four years, Neochimiki''''''''s sales and profits have increased over 80% per year on the average - with this enormous growth, the corporate structure has been thoroughly analyzed and it was decided to streamline it. This will save administrative costs, and by merging fourteen Neochimiki subsidiaries as an example, it will also enhance tax planning. The revised tax planning is expected to improve the monthly cash flow for 2007, while the Group will benefit from the investment law regarding non taxable reserves.
In the fourth quarter of 2006, Neochimiki will also merge Lamda Detergent S.A. and Lamda Cosmetics S.A.. Due to the fact that Lamda Detergent already has an excellent client base and a very well-developed technical and logistical infrastructure, Lamda Cosmetics gains crucial time to market for its products. The merger will approximately increase sales in 2007 by 12-15%, and Earnings after tax by 18-20%.
Within the overall trend of market consolidation, Neochimiki has signed an acquisition agreement with INTERKEM S.A. on 31st of October 2006. However, the deal is subject to the fulfillment of the provisions of the relevant preliminary agreement. INTERKEM S.A. operates its own chemical terminal in Avlida, where Neochimiki already has its own logistics center. The acquired company will also represent the first powder-coating unit in the Neochimiki Group; it will expand the value chain in the chemical business. This acquisition will especially reduce distribution costs and also give Neochimiki access to new clients, while leading to an improved market share in the Greek chemical market.