Annual / Quarterly Financial Statement • Sep 25, 2015
Annual / Quarterly Financial Statement
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FINANCIAL STATEMENTS FOR THE PERIOD 01/01/2005 UNTIL 31/12/2005 ACCORDING TO THE INTERNATIONAL FINANCIAL REPORTING STANDARDS
We have audited the accompanying financial statements as well as the consolidated financial statements of 'GR.SARANTIS S.A.', as of and for the year ended 31 December 2005. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with the Greek Auditing Standards, which are based on the International Standards on Auditing. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, evaluating the overall financial statement presentation as well as assessing the consistency of the Board of Directors' report with the aforementioned financial statements. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the aforementioned financial statements give a true and fair view of the financial position of the Company and that of the Group (of which this Company is the holding company), as of 31 December 2005, and of the results of its operations and those of the Group and their cash flows and changes in shareholders' equity for the year then ended in accordance with the International Financial Reporting Standards that have been adopted by the European Union and the Board of Directors' Report is consistent with the aforementioned financial statements.
BAKER TILLY HELLAS Certified Public Accountants-Consultants A.E. 76, 3rd Septembriou Str. 104 33 Athens Greece SOEL Rea.No: E148
Athens, 23rd February 2006 The Certified Public Accountant
John V. Kalogeropoulos SOEL. Reg. No: 10741
| GROUP | COMPANY | |||||||
|---|---|---|---|---|---|---|---|---|
| $01/01 -$ 31/12/2005 |
$01/01 -$ 31/12/2004 |
$01/10 -$ 31/12/2005 |
$01/10$ . 31/12/2004 |
$01/01 -$ 31/12/2005 |
$01/01 -$ 31/12/2004 |
$01/10 -$ 31/12/2005 |
$01/10 -$ 31/12/2004 |
|
| Tumover | 208,661,993.31 | 187.630.242.50 | 63,179,055.68 | 56,570,200.54 | 111,007,882.68 | 106,892,397.05 | 31.135.173.78 | 28,765,263.35 |
| Cost of sales | 108.568.589.56 | 101.551.466.60 | 33.441.357.56 | 30.654.055.03 | 57.980.880.12 | 55.758.413.45 | 17.456.517.55 | 15.036.754.69 |
| Gross profit | 100.093.403.75 | 86.078.775.90 | 29,737.698.12 | 25.916.145.51 | 53.027.002.56 | 51.133.983.60 | 13.678.656.23 | 13,728,508.66 |
| Other income - expenses (net) |
11.920.370.24 | 10.667.466.88 | 4.368.931.95 | 3.905.062.88 | 2.389.089.60 | 1.569.631.46 | 693.635.65 | 45.550.59 |
| Distribution costs Administrative |
71,400.632.34 | 61.120.622.02 | 20,940,025.18 | 17.866.271.51 | 38.306.178.25 | 36,964,934.77 | 10,109,072.94 | 9,944,315.67 |
| expenses | 12,463,560.99 | 11.078.395.01 | 3.952.240.39 | 3.580.636.22 | 6.073.195.01 | 6.745.669.48 | 1.660.412.89 | 2,277,167.88 |
| Operating profit | 28,149,580.66 | 24, 547, 225. 75 | 9,214,364.50 | 8,374,300.66 | 11,036,718.90 | 8,993,010.81 | 2,602,806.05 | 1,552,575.70 |
| Finance cost (net) |
$-2,866,399.88$ | $-2,594,092,40$ | $-857,950.06$ | -252.934.91 | $-1,615,620.47$ | $-1,190,069.36$ | $-315.723.37$ | $-608.237.72$ |
| Net profit before taxes |
25,283,180.78 | 21,953,133.35 | 8.356.414.44 | 8.121.365.75 | 9.421.098.43 | 7.802.941.45 | 2,287,082.68 | 944.337.98 |
| Income tax | 5.419.586.82 | 4.389.181.18 | 1,760,291.84 | 1.657.730.58 | 1.056.292.44 | 726.863.65 | $-68.807.76$ | 125,178.29 |
| Deferred Taxes |
698,886.15 | 247,114.22 | 80,853.31 | 52,689.44 | 666,324.93 | 218.070.29 | 40,129.87 | 59,605.40 |
| Net profit for the fiscal period |
19,164,707.81 | 17.316.837.95 | 6.515.269.29 | 6.410.945.73 | 7,698,481.06 | 6.858.007.51 | 2.315.760.57 | 759.554.29 |
| Allocated to: | 0.00 | 0.00 | 0.00 | 0.00 | ||||
| Shareholders of the parent |
19,330,092.34 | 16.966.281.78 | 6,882,810.04 | 6.290.027.85 | 7,698,481.06 | 6,858,007.51 | 2.315.760.57 | 759.554.29 |
| Minority interest | -165,384.53 | 350,556.17 | -367,540.75 | 120,917.88 | 0.00 | 0.00 | 0.00 | 0.00 |
| Earnings per share which correspond to the parent's shareholders for the fiscal period |
0.51 | 0.44 | 0.18 | 0.16 | 0.20 | 0.18 | 0.06 | 0.02 |
| Proposed Dividend per share |
0.13 | 0.10 |
| GROUP | COMPANY | |||
|---|---|---|---|---|
| 31/12/2005 | 31/12/2004 | 31/12/2005 | 31/12/2004 | |
| ASSETS | ||||
| Non-current assets | 70,012,652.42 | 64,158,315.28 | 90,999,580.70 | 81,040,339.40 |
| Tangible fixed assets | 44,788,257.74 | 44,393,678.59 | 38,066,277.03 | 38,544,854.00 |
| Intangible assets | 0.00 | 26,632.97 | 0.00 | 0.00 |
| Deferred tax asset | 3,442,212.79 | 6,024,941.69 | 3,324,532.83 | 5,852,241.49 |
| Investments in associates | 21,406,994.63 | 13,350,715.13 | 49,361,268.33 | 36,374,966.80 |
| Other long-term assets | 375,187.26 | 362,346.90 | 247,502.51 | 268,277.11 |
| Current assets | 147,546,387.18 | 128,971,689.64 | 93,882,010.43 | 88,654,495.83 |
| Inventories | 40,036,691.78 | 33,269,254.95 | 17,841,350.05 | 17,135,800.87 |
| Trade and other receivables | 73,424,196.88 | 64,496,248.46 | 48,203,450.40 | 46,448,096.65 |
| Other receivables | 6,828,142.79 | 6,969,033.99 | 5,983,963.65 | 5,235,429.30 |
| Cash & cash equivalents | 26,418,780.88 | 23,809,104.78 | 21,147,459.11 | 19,640,370.78 |
| Prepayments and accrued income | 838,574.85 | 428,047.46 | 705,787.22 | 194,798.23 |
| Total Assets | 217,559,039.60 | 193,130,004.92 | 184,881,591.13 | 169,694,835.23 |
| EQUITY of the Parent: | ||||
| Share capital | 57,220,410.00 | 57,220,410.00 | 57,220,410.00 | 57,220,410.00 |
| Share premium account | 38,750,355.98 | 38,750,355.98 | 38,750,355.98 | 38,750,355.98 |
| Reserves | $-826,736.28$ | 380,987.13 | $-826,736.28$ | 380, 987. 13 |
| Profit (losses) carried forward | $-34,214,587.90$ | $-61,705,812.39$ | $-46,003,159.47$ | $-66,170,879.88$ |
| Minority interest: | 1,848,607.24 | 1,991,143.84 | 0.00 | 0.00 |
| Total Equity | 62,778,049.04 | 36,637,084.56 | 49,140,870.23 | 30,180,873.23 |
| LIABILITIES | ||||
| Long-term liabilities | 98,317,624.19 | 103,774,392.84 | 105,169,867.03 | 106,535,102.76 |
| Loans | 92,800,000.00 | 96,000,000.00 | 92,800,000.00 | 96,000,000.00 |
| Deferred tax liability | 23,360.95 | 787,084.68 | 0.00 | 753,290.45 |
| Provisions for post employment employee benefits |
2,384,931.84 | 2,531,160.00 | 2,239,782.19 | 2,334,502.00 |
| Provisions and other long-term lia bilities |
3,109,331.40 | 4,456,148.16 | 10,130,084.84 | 7,447,310.31 |
| Short-term liabilities | 56,463,366.37 | 52,718,527.52 | 30,570,853.87 | 32,978,859.24 |
| Suppliers and other liabilities | 38,289,812.11 | 33,242,349.54 | 25,012,793.12 | 24,731,761.58 |
| Other liabilities | 4,480,091.54 | 8,638,130.20 | 2,672,488.19 | 6,010,548.92 |
| Income taxes and other taxes payable |
3,297,113.99 | 2,699,999.13 | 2,044,749.80 | 1,267,086.10 |
| Loans | 7,814,499.80 | 6,832,881.93 | 0.00 | 180.15 |
| Transitory Liability Accounts Total Equity & Liabilities |
2,581,848.93 217,559,039.60 |
1,305,166.72 193,130,004.92 |
840,822.76 184,881,591.13 |
969,282.49 169,694,835.23 |
| CASH FLOW STATEMENT | ||||
|---|---|---|---|---|
| (amounts are in euros) | GROUP | COMPANY | ||
| 01/01 31/12/2005 |
$01/01 -$ 31/12/2004 |
$01/01 -$ 31/12/2005 |
$01/01 -$ 31/12/2004 |
|
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||
| Profits before tax | 25.283.180,78 | 21.953.133,35 | 9.421.098,43 | 7.802.941,45 |
| Adjustments for: | ||||
| Depreciation of fixed assets | 3.605.366,82 | 3.530.778,40 | 2.194.111,37 | 2.211.653,26 |
| Provisions | $-1.483.638,66$ | $-290.891,82$ | 0,00 | 0,00 |
| Foreign Exchange differences | 54.648,62 | $-767.316,74$ | 683.359,34 | -461.492,58 |
| Results(income. expenses. profits and losses) from investing activities |
$-11.871.432.16$ | 11.556.764,83 | $-2.737.766,65$ | 6.299.132,54 |
| Interest expense and related expenses | 4.870.889,55 | 5.363.280,40 | 3 436 036,64 | 4.464.205,68 |
| Plus/minus adjustments for changes in working capital accounts or accounts related to operating activities: |
||||
| Decrease / (increase) in inventories | $-6.767.436,83$ | $-1.536.981,41$ | $-705.549.18$ | $-8.628.939,46$ |
| Decrease / (increase) in receivables | $-6.614.855,71$ | $-1.737.247,96$ | $-487.168,43$ | $-368.303,93$ |
| (Decrease) / increase in liabilities (other than to banks) | 5.488.469.14 | 2.663.752,74 | 661.819,58 | 1.340.403,63 |
| Less: | ||||
| Interest and related expenses paid | $-4.870.889,55$ | $-5.363.280,40$ | -3.436.036,64 | -4 464 205,68 |
| Tax paid | $-5.521.358,11$ | $-6.832.481,69$ | 1.389.483,85 | $-1.936.837.69$ |
| NET INFLOWS / (OUTFLOWS) FROM OPERATING ACTIVITIES (a) |
2.172.943,89 | 5.425.980,04 | 7.640.420,61 | 6.258.557,22 |
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||
| Acquisitions of subsidiaries. associates. joint ventures and | ||||
| other investments | 9.610.453,21 | 12.234.860,75 | $-1.100.000,00$ | 0,00 |
| Purchase of tangible and intangible fixed assets | $-3.568.925,00$ | $-4.080.679,21$ | $-1.823.053,62$ | $-3.079.213,21$ |
| Proceeds from sale of tangible and intangible assets | 0,00 | 0,00 | 67.014,96 | 29.101,33 |
| Interest received | 396.944,00 | 185.958.09 | 75.122,64 | 78.861,17 |
| Dividends received | 651.668,42 | 653.860,13 | 0,00 | 1.567.888,24 |
| NET INFLOWS / (OUTFLOWS) FROM INVESTING ACIIVIIIES (D) |
7.090.140.63 | 8.993.999.76 | 2.780.916.02 | $-1.403.362.47$ |
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||
| Proceeds from issuance of share capital | 0,00 | 0,00 | 0,00 | 603.196,30 |
| Proceeds from loans granted / assumed | 981.617,87 | 64.631.000,00 | 837.998,86 | 69.006.110,44 |
| Payment of loans | $-3.200.000,00$ | $-80.398.587,13$ | $-180,15$ | -73.817.296,98 |
| Payment of finance lease liabilities (payments of principal) | 0,00 | 0,00 | $-132.025,26$ | $-147$ 157,56 |
| Dividends paid | 4 150 141,63 | $-1.567.481,13$ | 3.822.935,25 | $-1.160.656,92$ |
| TOTAL INFLOWS / (OUTFLOWS) FROM FINANCING ACTIVITIES (c) |
6.368.523,76 | 17.335.068,26 | 3.117.141,80 | $-5.515.804,72$ |
| Increase / (decrease) in cash and cash equivalents (a) $+$ (b) + (c) |
2.894.560,76 | $-2.915.088,46$ | 1.742.362,79 | $-660.609,97$ |
| Cash and cash equivalents at the start of the period | 7.005.034,80 | 9.920.123,26 | 2.893.094.00 | 3.553.703,97 |
| CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD | 9.899.595,56 | 7.005.034,80 | 4.635.456,79 | 2.893.094,00 |
| GROUP | COMPANY | |||
|---|---|---|---|---|
| $01/01 -$ 31/12/2005 |
$01/01 -$ 31/12/2004 |
$01/01 -$ 31/12/2005 |
$01/01 -$ 31/12/2004 |
|
| Equity at the beginning of the period (01/01/2005 and 01/01/2004 respectively) |
36.637.084,56 | 25.494.415,39 | 30.180.873,23 | 63.235.715,94 |
| Profits/(losses) for the period after tax | 19 164 707.81 | 17 316 837.95 | 7.698.481.06 | 6.858.007.51 |
| 55.801.792.37 | 42.811.253.34 | 37.879.354,29 | 70.093.723,45 | |
| Increase/decrease in share capital due to absorption |
603.196.30 | 603.196.30 | ||
| Decrease in share premium account due to absorption of companies in accordance with article 29 L, 3091/2002 |
-36 744 675.68 | -36.744.675.68 | ||
| Revaluation of Assets | 954.712,46 | 954.712,46 | ||
| Net income recorded directly in shareholders' funds |
6.976.256,67 | 29.012.598,14 | 11.261.515,94 | -4.726.083,30 |
| Purchase of own shares | 0,00 | 0,00 | 0,00 | 0,00 |
| Equity at the end of the period (31/12/2005 and 31/12/2004 respectively) |
62.778.049,04 | 36.637.084.56 | 49.140.870.23 | 30.180.873.23 |
The company "GR. SARANTIS SA, INDUSTRIAL AND COMMERCIAL COMPANY OF COSMETICS - CLOTHING - HOUSEHOLD AND PHARMACEUTICAL PRODUCTS" under the trade name "GR. SARANTIS S.A." (hereinafter the "Company" or the "Parent") and its subsidiaries (hereinafter the "Group") operate in the field of production, trade and distribution of cosmetics, household and pharmaceutical goods. The Company and Group's domicile is in the Amarrousio Municipality, 26 Amarrousiou - Chalandriou Street, while the Group employs 1,510 individuals and the parent 650.
The company's shares are listed in the main market of the Athens Stock Exchange.
The financial statements of the Company and the Group for the period ended on December 31st 2005, were approved for disclosure by decision of the Board of Directors on 30/01/2006.
The subsidiary companies that have been included in the attached consolidated financial statements of the Group are described in note B (ii).
The main accounting principles adopted during the preparation of the consolidated financial statements, are analyzed as follows:
The interim financial statements, which are in accordance with IAS 34, have been prepared according to the historic cost principle, except for the valuation of specific items in the assets and liabilities accounts, which was made at current values, and based on the going concern principle for the Group.
The statements have been compiled according to the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Council, which have been adopted by the European Union, and the Interpretations supplied by the Regular Interpretation Committee.
The Company will compile its financial statements according to IFRS for the first time for the fiscal year ending 31st of December 2005. No standards have been applied before their effective date.
These consolidated statements are based on the financial statements prepared by the Group according to Greek Commercial Law, after making the necessary out-of-books adjustments to bring them in line with the IFRS.
The preparation of financial statements according to generally accepted accounting principles requires use of estimations and assumptions that affect the balances of asset and liability accounts. It also requires knowledge of the contingent assets and liabilities on the date of compilation of the financial statements as well as the presented income and expenses for the financial years under examination. Although these estimations are based on the (Group) Management's best knowledge, the actual results may eventually differ.
The consolidated financial statements consist of the financial statements of the Parent and its subsidiaries. The following table presents the subsidiaries included in the consolidation, the consolidation method along with the relevant participation shares, and the activity of each subsidiary as well as their tax un-audited fiscal years.
| STRUCTURE | |||||
|---|---|---|---|---|---|
| COMPANY | DOMICILE | DIRECT PARTICIPATI ON SHARE |
INDIRECT PARTICIPATI ON SHARE |
TOTAL | UN-AUDITED TAX YEARS |
| FULL CONSOLIDATION METHOD | |||||
| K. THEODORIDIS SA | GREECE | 50.00% | $0.00\%$ | 50.00% | 2004-2005 |
| OTO TOP EOOD | BULGARIA | $0.00\%$ | 25 50% | 25 50% | 1999-2005 |
| ST. PAROS SA | GREECE | 86.60% | $0.00\%$ | 86 60% | 2002-2005 |
| GRECOVET L.T.D. | GREECE | 1.65% | 85 16% | 86.81% | 2003-2005 |
| VENTURES SA | GREECE | 70.00% | $0.00\%$ | 70 00% | 2003-2005 |
| GR SARANTIS CYPRUS LIMITED | CYPRUS | 100.00% | $0.00\%$ | 100.00% | |
| BRIARDALE SERVICES S.A | ISLE OF MAN | $0.00\%$ | 100.00% | 100.00% | |
| SARANTIS BULGARIA L.T.D | BULGARIA | $0.00\%$ | 100.00% | 100.00% | 1999-2005 |
| SARANTIS ROMANIA S.A | ROMANIA | $0.00\%$ | 100.00% | 100.00% | 2005 |
| SARANTIS DISTRIBUTION S.C | ROMANIA | $0.00\%$ | 100.00% | 100.00% | 2005 |
| SARANTIS L.T.D BELGRADE | SERBIA | $0.00\%$ | 100.00% | 100.00% | |
| SARANTIS SKOPJE L.T.D | SKOPJE | $0.00\%$ | 100.00% | 100.00% | |
| SARANTIS POLSKA S.A | POLAND | $0.00\%$ | 99.40% | 99 40% | 2005 |
| LINCO L.T.D | POLAND | $0.00\%$ | 99 40% | 99 40% | 2005 |
| NET WEST POLAND S.A | POLAND | $0.00\%$ | 99 40% | 99.40% | 2005 |
| SARANTIS CZECH REPUBLIC sro | CZECH REPUBLIC |
$0.00\%$ | 99 40% | 99.40% | 2005 |
| VENUS S.A | LUXEMBOURG | $0.00\%$ | 100.00% | 100.00% | |
| ZETA AE | GREECE | $0.00\%$ | 100.00% | 100.00% | 2005 |
| ZETA FIN LTD | CYPRUS | $0.00\%$ | 100.00% | 100.00% | 2002-2005 |
| WALDECK LIMITED | CYPRUS | $0.00\%$ | 100,00% | 100.00% | |
| ZETA COSMETICS LTD | 0,00% | 100,00% | 100,00% | 2002-2005 | 0,00% |
| SARANTIS ANADOL S.A | TURKEY | 59,98% | 0,00% | 59,98% | |
| SARANTIS UKRAINE S.A | UKRAINE | 59 98% | $0.00\%$ | 59.98% | |
| EQUITY METHOD | |||||
| K.P. MARINOPOULOS | GREECE | 49.00% | 49.00% | 2003-2005 | |
| ELCA COSMETICS LTD | CYPRUS | $0.00\%$ | 49.00% | 49.00% | 2001-2005 |
| ESTEE LAUDER HELLAS | GREECE | 0.00% | 49.00% | 49.00% | 2001-2005 |
| ESTEE LAUDER BULGARIA | BULGARIA | 0.00% | 49.00% | 49 00% | 2001-2005 |
| IM COSMETICS SA | ROMANIA | 0.00% | 49.00% | 49.00% | 2001-2005 |
Subsidiary companies are those on which the parent has control. The existence of possible exercisable voting rights during the compilation of the financial statements is taken into account in order to establish whether the parent controls the subsidiaries. Subsidiaries are fully consolidated (full consolidation) apart from three: FRANGOS S.A., P. MARINOPOULOS S.A. and ELCA COSMETICS L.T.D. along with its subsidiaries ESTEE LAUDER HELLAS S.A. and ESTEE LAUDER BULGARIA IM COSMETICS S.A, which are consolidated using the equity method.
The accounting method used for the consolidation is the acquisition method. The acquisition cost of a subsidiary is the fair value of assets provided, participating securities issued and liabilities assumed at the acquisition date, plus any cost directly related to the transaction. The individual assets, liabilities and contingent liabilities that comprise a business combination, are valued upon acquisition at fair value irrespective of the participation percentage. The cost in excess of the fair value of acquired items, is booked as goodwill. If the total acquisition cost is less than the fair value of the acquired items, then the difference is directly recognized in the results.
Intra-company transactions - Intra-company balances and unrealized profit from transactions between group companies are eliminated. Unrealized losses are eliminated as long as there is no indication of impairment for the transferred assets.
a) The company values its participations in subsidiaries and associates at acquisition cost less any impairment.
All financial assets are initially valued at their acquisition cost.
In accordance with IAS 39 financial assets, with the exception of investments in subsidiaries, associated companies and joint ventures, are classified in one of the following categories (a) available for sale, (b) financial assets valued at fair value through the income statement, (c) held to maturity, (d) loans and receivables.
The Group classifies investments in shares in one of the first two categories.
The subsequent valuation of financial assets depends on their classification. Investments available for sale and financial assets at fair value through the income statement are valued at fair value. Profits or losses from the valuation of investments available for sale (with the exception of impairment losses) are recorded directly in shareholders' funds in a special reserve account until they are sold, at which point the cumulative profits/losses that have been recoded in the shareholders' funds are recognized in the profit and loss account. Profits or losses from the valuation of financial assets valued at fair value through the income statement are recognized in the profit and loss account.
Investments held to maturity are valued at acquisition cost less accumulated depreciation using the effective interest rate method and the relevant discounting results are recognized in the profit and loss account through the process of depreciation or upon disposal.
The measurement and reporting currency of the Group as of January 1st, 2002 is the Euro, as a result the consolidated financial statements are presented in euros $(\epsilon)$ , the valuation currency of the parent company.
Transactions in foreign currency are converted into euros using the rates in effect at the date of the transaction. Assets and liabilities in foreign currency at the date of compilation of the financial statements are adjusted so as to reflect the foreign exchange rates at the date of compilation. Profits and losses resulting from such transactions (and from the conversion of assets and liabilities denominated in foreign currency) are recognized in the income statement except when they are classified as equity as a recognised cash flow hedge.
The conversion of the financial statements of Group companies which have a different operating currency from the parent is performed as follows:
The resulting foreign currency differences are booked in an equity reserve and are transferred to the income statement upon sale of these companies.
The goodwill and fair value adjustments that result from the acquisition of economic units abroad are converted using the balance sheet date rates.
Real estate property (land, buildings) is valued at fair value, at least every three years by independent surveyors. Increases in the book value of the real estate property, which arise from fair value adjustments, are registered in an equity reserve. Decreases in the book value reduce the reserve, if such a reserve had been previously created for the same asset. Decreases in value beyond the reserve, as well as decreases in the book value of assets for which there is no revaluation reserve, are recorded in the income statement as an expense.
Land is not depreciated. Depreciations of other tangible fixed assets are calculated using the straight-line method throughout their useful economic life, which is as follows:
| Buildings | $25-60$ years |
|---|---|
| Machinery | 8-10 years |
| Transportation means | 5-9 years |
| Fixtures and fittings | 3-5 years |
Other tangible fixed assets are valued at their acquisition cost less depreciation. Acquisition costs include all directly attributable expenditures for the acquisition of the items. The costs may also include profits or losses from the hedging of foreign exchange risk during the acquisition of these assets, which had been recorded in an equity reserve.
Repairs and maintenance are recognized as an expense in the fiscal year they are incurred. Significant subsequent additions and improvements are capitalized in the cost of the relevant fixed assets provided that they increase the useful economic life or/and the productive capacity of the fixed asset or they decrease its operating cost.
The residual values and the useful economic lives of tangible fixed assets are subject to revision at each annual balance sheet.
When the book values of tangible fixed assets exceed their recoverable amount, the differences (impairment) are recorded in the income statement as an expense.
Upon withdrawal or disposal of an asset, the relevant cost and accumulated depreciation is written off the respective accounts at the time of their withdrawal or disposal, and the relevant profits or losses are recorded in the income statement. When the withdrawn or disposed tangible assets have been valued at their fair value, the revaluation reserve -if any- which has been recorded in equity is transferred to the profits carried forward account at the time of the withdrawal or disposal.
(Relevant tables in pages 28-32)
Tangible assets are examined for potential impairment loss, whenever facts or changes in circumstances indicate that their book value may not be recoverable. Whenever the book value of an asset exceeds its recoverable amount, the respective impairment loss is recorded in the income statement. The recoverable amount of an asset is the largest amount between the estimated net sales value and its value in use. Net sales value is the plausible revenue from the sale of an asset in the context of an arm's length transaction, in which all parties engage willingly and in full knowledge, after the deduction of every additional direct cost required for the sale of the asset. On the other hand, value in use is the present value of estimated future cash flows expected to occur from the continued use of the asset and from its disposal at the end of its expected useful economic life. If a company is not in a position to estimate the recoverable amount of an asset, for which there is indication of impairment, then it defines the recoverable amount of the cash-flow generating unit to which the asset belongs.
Reversal of the loss from the impairment of an asset that was recorded in a previous year is performed only when there are sufficient indications that such impairment no longer pertains or is reduced. In these cases the reversing entry is recognised as income.
The Management consider that none of the Company's fixed assets have suffered impairment and as a result no calculation of the assets' recoverable amounts was made.
Inventories are valued at the lower of the acquisition cost and the net realizable value. The cost is determined by the average weighted cost method. The cost for finished products and work-in-progress inventories includes the cost of materials, direct labor costs and the proportion of the general common production cost. Finance costs are not included in acquisition cost of the inventories. The net realizable value
is estimated according to the current sale prices of the inventories in the context of ordinary activity, after the deduction of possible sale expenses whenever required.
(Relevant table in page 16)
Trade receivables are initially recorded at their fair value and subsequently valued at unamortised cost using the effective interest rate, after deducting impairment losses. Impairment losses (losses from doubtful receivables) are recognized when there is objective evidence that the Group is not in a position to collect the amounts owed in accordance with the contractual clauses. The amount of impairment loss is the difference between the book value of the receivables and the present value of the expected future cash flows, discounted using the effective interest rate. The amount of the loss is recorded as an expense in the profit and loss account.
(Relevant tables in pages 16-17)
Cash and cash equivalents include cash, sight deposits and short term - up to 3 months - investments with high liquidity and low risk.
(Relevant table in page 18)
The common registered shares are classified as equity.
(Relevant table in page 27)
Loans are recorded at their fair value. Subsequently, they are valued at unamortised cost using the effective interest rate.
The Management of the Group considers that the interest rates payable in relation to the loans assumed are equivalent to the current fair market rates, and therefore no conditions arise for the adjustment of the value of these liabilities.
Any difference between the amount granted (excluding the acquisition cost) and the repayment value is recognized in the profit and loss account during the lending period.
(Relevant tables in pages 19-20)
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$(b)$ Rendering of services
Revenue from the rendering of services is accounted for based on the stage of completion of the service rendered in relation with the estimated total cost.
Interest revenue is recognized on a time proportion basis using the effective yield.
$(d)$ Dividends
Dividends are accounted for as revenue when the right to receive payment has been established.
| INVENTORIES | |||
|---|---|---|---|
| A. Parent company | 31/12/2005 | 31/12/2004 | |
| Merchandise | 7,662,859.03 | 6,807,615.47 | |
| Products | 5,682,628.50 | 3,458,097.08 | |
| Raw materials | 4,495,862.52 | 6,870,088.32 | |
| 17,841,350.05 | 17,135,800.87 | ||
| B. Group | 31/12/2005 | 31/12/2004 | |
| Merchandise | 29,514,655.92 | 22,741,533.68 | |
| Products | 5,833,205.13 | 3,536,889.90 | |
| Raw materials | 4,688,830.73 | 6,990,831.37 | |
| 40,036,691.78 | 33,269,254.95 |
| Group | Company | |||
|---|---|---|---|---|
| 31/12/2005 | 31/12/2004 | 31/12/2005 | 31/12/2004 | |
| Trade receivables | 55,763,243.34 | 46,696,757.63 | 33,753,849.18 | 30,812,321.58 |
| Post-dated cheques | 16,225,830.30 | 16,719,748.30 | 13,904,720.55 | 15,039,381.16 |
| Prepayments | 360,791.09 | 356,294.05 | 312,552.85 | 225,867.48 |
| Other debtors | 6,031,711.58 | 5,449,900.91 | 5, 115, 166. 21 | 3,774,391.61 |
| Prepaid expenses | 436,270.39 | 193,939.96 | 544,761.85 | 39,728.90 |
| TRADE AND OTHER RECEIVABLES | |||
|---|---|---|---|
| A. Parent company | 31/12/2005 | 31/12/2004 | |
| Trade receivables | 33.753.849,18 | 30.812.321,58 | |
| Less provisions | 0,00 | 0,00 | |
| Net trade receivables | 33.753.849,18 | 30.812.321,58 | |
| Cheques and bills of exchange receivable | 14.449.601,22 | 15 635 775,07 | |
| Other debtors | 5.983.963,65 | 5.235.429,30 | |
| Accrued income | 95.527,46 | 140.816,41 | |
| Prepaid expenses | 544.761,85 | 39.728,90 | |
| Other transitory accounts | 65.497,91 | 14.252,92 | |
| 54.893.201,27 | 51.878.324,18 | ||
| B. Group | |||
| Trade receivables | |||
| Less provisions | 56.491.226,25 | 46.726.179,23 | |
| Net trade receivables | 727.982,91 | 29.421,60 | |
| Cheques and bills of exchange receivable | 55.763.243,34 | 46.696.757,63 | |
| Other debtors | 17.660.953,54 | 17.799.490,83 | |
| Accrued income | 6.828.142,79 | 6.969.033,99 | |
| Prepaid expenses | 136.689,55 | 123.834,09 | |
| Other transitory accounts | 436.270,39 | 193,939,96 | |
| A. Parent company | 265.614,91 | 110.273,41 | |
| 81.090.914,52 | 71.893.329,91 |
All receivables are short-term hence discounting is not required at the Balance Sheet date.
There is no credit risk concentration with respect to trade receivables given that the Group has a large number of customers and the risk is dispersed.
Cash & cash equivalents relate to cash in hand at the Group and the Company and bank deposits available on demand.
| CASH & CASH EQUIVALENTS | |||
|---|---|---|---|
| 31/12/2005 | 31/12/2004 | ||
| A. Parent company | |||
| Cash | 26,593.86 | 65,700.83 | |
| Bank deposits | 4,608,862.93 | 2,827,393.17 | |
| Securities | 16,512,002.32 | 16,747,276.78 | |
| 21,147,459.11 | 19,640,370.78 | ||
| B. Group | |||
| Cash | 132,665.76 | 172,331.10 | |
| Bank deposits | 9,766,929.80 | 6,832,703.70 | |
| Securities | 16,519,185.32 | 16,804,069.98 | |
| 26,418,780.88 | 23,809,104.78 |
| Group | Company | |||
|---|---|---|---|---|
| 31/12/2005 | 31/12/2004 | 31/12/2005 | 31/12/2004 | |
| Trade creditors | 30,626,368.22 | 27,902,150.20 | 17,727,815.93 | 19,842,573.41 |
| Social security | 1,292,868.91 | 1,326,110.44 | 780,634.70 | 754,652.36 |
| Accrued expenses | 1,805,456.37 | 432,663.99 | 286,133.68 | 275,337.85 |
| Other creditors | 852,953.84 | 1,292,929.19 | 376,913.10 | 752,895.47 |
| TRADE AND OTHER CREDITORS | |||
|---|---|---|---|
| 31/12/2005 | 31/12/2004 | ||
| A. Parent company | |||
| Trade creditors | 17,727,815.93 | 19,842,573.41 | |
| Cheques payable | 7,284,977.19 | 4,889,188.17 | |
| Social security funds | 780,634.70 | 754,652.36 | |
| Accrued expenses | 286,133.68 | 275,337.85 | |
| Deferred income | 554,689.08 | 692,701.04 | |
| Other transitory accounts | 0.00 | 1,243.60 | |
| Other creditors | 1,891,853.49 | 5,255,896.56 | |
| 28,526,104.07 | 31,711,592.99 | ||
| B. Group | |||
| Trade creditors | 30,626,368.22 | 27,902,150.20 | |
| Cheques payable | 7,663,443.89 | 5,340,199.34 | |
| Social security funds | 1,292,868.91 | 1,326,110.44 | |
| Accrued expenses | 1,805,456.37 | 432,663.99 | |
| Deferred income | 712,243.56 | 855,829.38 | |
| Other transitory accounts | 64,149.00 | 16,673.35 | |
| Other creditors | 3,187,222.63 | 7,312,019.76 | |
| 45,351,752.58 | 43,185,646.46 |
| Group | Company | |||
|---|---|---|---|---|
| Long-term loans | 31/12/2005 | 31/12/2004 | 31/12/2005 | 31/12/2004 |
| Debentures | 92,800,000.00 | 96,000,000.00 | 92,800,000.00 | 96,000,000.00 |
| Short-term loans | ||||
| Bank loans | 7,814,499.80 | 6,832,881.93 | 0.00 | 180.15 |
| Total loans | 100,614,499.80 | 102,832,881.93 | 92,800,000.00 | 96,000,180.15 |
| ANALYSIS OF DEBENTURES | ||||
|---|---|---|---|---|
| BANK | MATURITY | AMOUNT | ||
| NBG SERIES A' | 30/03/2007 | 13,500,000 | ||
| ALPHA BANK SERIES A' | 30/03/2007 | 10,000,000 | ||
| ALPHA BANK SERIES B' | 30/04/2007 | 9,000,000 | ||
| HSBC | 30/03/2007 | 5,500,000 | ||
| BANK OF ATTICA | 08/07/2007 | 3,500,000 | ||
| PIRAEUS BANK | 30/04/2007 | 5,500,000 | ||
| LAIKI BANK | 30/04/2007 | 4,500,000 | ||
| ABN AMRO | 30/04/2007 | 4,500,000 | ||
| EFG EUROBANK | 30/04/2007 | 21,500,000 | ||
| EMPORIKI | 30/07/2008 | 15,300,000 | ||
| TOTAL | 92,800,000 |
Income tax is analysed as follows:
| Group | Company | ||||
|---|---|---|---|---|---|
| 2005 | 2004 | 2005 | 2004 | ||
| Income tax for the period | 5,419,586.82 | 4,389,181.18 | 1,056,292.44 | 726,863.65 | |
| Deferred tax | 698,886.15 | 247,114.22 | 666,324.93 | 218,070.29 | |
| TOTAL | 6,118,472.97 | 4,636,295.40 | 1,722,617.37 | 944,933.94 |
The amount for tax has been calculated using the actual tax rates of the previous years. The Management of the Group consistently follows a policy aiming to minimize the tax burden based on the incentives provided by tax laws.
Non tax deductible expenses mainly comprise provisions which are adjusted by the Management during the calculation of income tax.
| Group | Company | ||||
|---|---|---|---|---|---|
| 2005 | 2004 | 2004 | |||
| Deferred tax assets | 3,442,212.79 | 6,024,941.69 | 3,324,532.83 | 5,852,241.49 | |
| Deferred tax liabilities | 23,360.95 | 787,084.68 | 0.00 | 753,290.45 |
| PERIOD | ||||||
|---|---|---|---|---|---|---|
| 31/12/2004 | 01/01/2005- 31/12/2005 |
31/12/2005 | ||||
| Write-off of Capitalized expenses | 2,757,633.13 | $-787,517.28$ | 1,970,115.85 | |||
| Write-off of fixed assets under construction | 9,073.15 | $-3,929,74$ | 5,143.41 | |||
| Write-off of fixed assets | 147,353.97 | $-39,472.19$ | 107,881.78 | |||
| Write-off of inventories | 416,500.00 | $-416,500.00$ | 0.00 | |||
| Write-off of trade receivables | 150,798.29 | $-44,229.17$ | 106,569.12 | |||
| Write-off of other debtors | 1,189,489.06 | $-707,585.58$ | 481,903.48 | |||
| Transfer of profit from sale and lease back transaction |
289,825.12 | $-261,760.24$ | 28,064.88 | |||
| (sales and lease back) | 0.00 | |||||
| Provisions | 891,568.77 | $-266,714.45$ | 624,854.32 | |||
| TOTAL | 5,852,241.49 | $-2,527,708,66$ | 3,324,532.83 | |||
| DEFERRED TAX LIABILITIES | ||||||
| PERIOD | ||||||
| 31/12/2004 | 01/01/2005 31/12/2005 |
31/12/2005 | ||||
| From building sale and lease back | 181,144.07 | $-181,144.07$ | 0.00 | |||
| From the reversal of a receivable previously written-off |
570,344.43 | $-570,344.43$ | 0.00 | |||
| Other | 1,801.95 | $-1,801.95$ | 0.00 | |||
| TOTAL | 753,290.45 | $-753,290.45$ | 0.00 |
| DEFERRED TAX ASSETS | PERIOD | ||
|---|---|---|---|
| 31/12/2004 | 01/01/2005 31/12/2005 |
31/12/2005 | |
| Write off of Capitalized expenses | 2,806,211.98 | $-816,429.16$ | 1,989,782.82 |
| Write-off of fixed assets under construction | 22,594.47 | $-5.088.71$ | 17,505.76 |
| Write-off of fixed assets | 158,712.20 | $-42,039.17$ | 116,673.03 |
| Write-off of inventories | 416,500.00 | $-416,500.00$ | 0.00 |
| Write-off of trade receivables | 181,209.79 | $-44,229.17$ | 136,980.62 |
| Write-off of other debtors | 1.189,489.06 | $-707.585.58$ | 481,903.48 |
| Transfer of profit from sale and lease back transaction |
289,825.12 | $-261,760.24$ | 28,064.88 |
| (sales and lease back) | 0.00 | ||
| Provisions | 960,399.07 | $-289,096.86$ | 671,302.21 |
| TOTAL | 6,024,941.69 | $-2,582,728.90$ | 3,442,212.79 |
| DEFERRED TAX LIABILITIES | |||
| PERIOD | |||
| 31/12/2004 | 01/01/2005 31/12/2005 |
31/12/2005 | |
| From building sale and lease back | 181,144.07 | $-181.144.07$ | 0.00 |
| From the reversal of a receivable previously written off |
570,344.43 | $-570,344.43$ | 0.00 |
| Other | 35,596.18 | $-12,235,23$ | 23,360.95 |
| TOTAL | 787.084.68 | -763.723.73 | 23,360.95 |
The present financial statements are the first financial statements compiled and published by the Group according to the International Accounting Standards.
In view of the need to present comparable financial accounts for the previous financial year on the same basis, the Company and the Group valued and adjusted their individual assets and liabilities on 31 December 2003. This resulted in the differentiation of the financial statements, which had been previously compiled and published, according to the provisions of Greek company law.
The major adjustments, which were deemed necessary, concern the following:
The direct depreciation of various expenses, which had been capitalized in the past and depreciated gradually, the adjustment of depreciation rates concerning tangible fixed assets, in order to reflect their useful economic life.
The accounting recognition of the liabilities of the Company and the Group to employees, concerning the future payment of benefits based on years of service for each employee, and
The accounting recognition of the effects of deferred tax,
The valuation of participations and securities
| RECONCILIATION OF OPENING EQUITY (AS AT 01/01/2005 and 01/01/2004) BETWEEN THE GREEK ACCOUNTING STANDARDS AND THE INTERNATIONAL ACCOUNTING STANDARDS (IAS) |
||||||||
|---|---|---|---|---|---|---|---|---|
| COMPANY | GROUP | |||||||
| 01/01/2005 | 01/01/2004 | 01/01/2005 | 01/01/2004 | |||||
| EQUITY AT THE BEGINNING OF THE PERIOD (1/1/2005 AND 1/1/2004) ACCORDING TO G.A.S. |
104,729,531.00 | 138,966,184.15 | 106,372,927.56 | 142, 287, 454.43 | ||||
| ADJUSTMENTS TO LAND AND BUILDINGS DUE TO VALUATION AT FAIR VALUE |
12,788,521.47 | 13,212,467.52 | 12,788,521.47 | 13,212,467.52 | ||||
| DEPRECIATION OF EXPENSES THAT WERE CAPITALIZED IN THE PAST EFFECT OF SALE AND LEASE BACK |
$-7,878,951.80$ | $-6,169,269.44$ | $-7,878,951.80$ | $-6,169,269.44$ | ||||
| AGREEMENT | $-310,517.29$ | $-786,243.08$ | $-310,517.29$ | $-786,243.08$ | ||||
| EFFECT OF VALUATION OF PARTICIPATIONS |
-45,223,078.39 | -46,720,610.91 | -39,652,392.36 | -41,149,924.88 | ||||
| EFFECT OF VALUATION OF SECURITIES | $-26,998,768,25$ | $-27.005.467.58$ | $-26,998,768.25$ | $-27,005,467.58$ | ||||
| EFFECT OF REASSESSMENT OF INVENTORIES |
$-3,190,000.00$ | $-3,190,000.00$ | $-3,190,000.00$ | $-3,190,000.00$ | ||||
| OTHER RECEIVABLE WRITE-OFFS | $-3,598,655.01$ | $-4,507,972,22$ | $-3,598,655.01$ | $-4,507,972.22$ | ||||
| PROVISION FOR STAFF RETIREMENT INDEMNITIES BASED ON ACTUARIAL STUDY |
$-2,334,502.00$ | $-2,334,502.00$ | $-2,334,502.00$ | $-2,334,502.00$ | ||||
| OTHER PROVISIONS | $-2,901,657,54$ | $-2,994,851.58$ | $-2,901,657,54$ | $-2,994,851,58$ | ||||
| RECOGNITION OF DEFERRED TAX ASSETS/LIABILITIES |
5.098.951.04 | 4,765,981.08 | 5,098,951.04 | 4.765.981.08 | ||||
| OTHER AMOUNTS | $-369.622.92$ | |||||||
| WRITE-OFF OF DIVIDENDS THAT ARE NOT RECOGNIZED |
-986,357.37 | $-2,140,418.06$ | ||||||
| DEPRECIATED CONSOLIDATION DIFFERENCES AND MINORITY INTERESTS |
598,109.03 | $-44,492,838.80$ | ||||||
| 30,180,873.23 | 63, 235, 715.94 | 36,637,084.56 | 25,494,415.39 |
| RECONCILIATION OF RESULTS (AS AT 30/09/2004 AND 31/12/2004) BETWEEN THE GREEK ACCOUNTING STANDARDS AND THE INTERNATIONAL ACCOUNTING STANDARDS (IAS) |
||||||||
|---|---|---|---|---|---|---|---|---|
| COMPANY | GROUP | |||||||
| 30/09/2004 | 31/12/2004 | 30/09/2004 | 31/12/2004 | |||||
| NET PROFIT FOR THE PERIOD (30/09/2004 AND 31/12/2004) ACCORDING TO THE G.A.S. |
||||||||
| 6,520,282.34 | 7,876,801.63 | 17,354,916.99 | 29,333,344.68 | |||||
| WRITE-OFF OF EXPENSES THAT HAD BEEN CAPITALISED |
$-1,057,612.62$ | $-1,524,493.56$ | $-1,068,010.41$ | $-1,552,465.53$ | ||||
| DEPRECIATION CHARGED TO THE INCOME STATEMENT FROM THE WRITE-OFF OF |
||||||||
| INTANGIBLE ASSETS EFFECT ON THE RESULTS FROM THE NON- RECOGNITION AS AN EXPENSE OF LEASE PAYMENTS RELATING TO THE SALE AND LEASE |
150,807.21 | 321,128.22 | 161,637.08 | 347,294.35 | ||||
| BACK OF A BUILDING | 44.141.87 | 58,855.83 | 44.141.87 | 58,855.83 | ||||
| EFFECT OF THE NON-RECOGNITION OF A LOSS FROM THE VALUATION OF SECURITIES DUE TO PREVIOUS WRITE-OOF |
1,222,166.59 | 1,629,555.50 | 1,222,166.59 | 1,629,555.50 | ||||
| PROPORTION OF PROFIT FROM THE SALE AND LEASE BACK OF A BUILDING |
103,508.97 | 138,011.96 | 103,508.97 | 138,011.96 | ||||
| INCOME TAX FOR THE PERIOD AND DEFERRED TAX |
$-760,150.25$ | -944,933.94 | $-2,925,875.38$ | $-4,636,295.40$ | ||||
| OTHER AMOUNTS | $-124.690.89$ | $-346.918.13$ | 72,593.41 | $-104.594.83$ | ||||
| REMUNERATIONS OF BoD MEMBERS | 0.00 | $-350,000,00$ | 0.00 | $-380,000.00$ | ||||
| EFFECT FROM THE CHANGE OF CONSOLIDATION METHOD (FROM FULL CONSOLIDATION METHOD TO NET EOUITY METHOD) |
$-4.059.186.90$ | $-7,516,868.58$ | ||||||
| NET PROFIT FOR THE PERIOD (30/09/2004 AND 31/12/2004) ACCORDING TO IAS |
6,098,453,22 | 6,858,007,51 | 10,905,892.22 | 17,316,837.95 |
| RECONCILIATION OF EQUITY FOR THE PERIOD (30/06/2005 and 30/06/2004) BETWEEN THE GREEK ACCOUNTING STANDARDS AND THE INTERNATIONAL ACCOUNTING STANDARDS (IAS) |
||||||||
|---|---|---|---|---|---|---|---|---|
| 30/06/2004 | 30/06/2004 | |||||||
| EQUITY FOR THE PERIOD (30/6/2004) ACCORDING TO THE G.A.S. | 107,896,053.72 | 108,746,053.72 | ||||||
| ADJUSTMENTS TO LAND AND BUILDINGS DUE TO VALUATION AT FAIR VALUE |
12,788,521.47 | 12,788,521.47 | ||||||
| DEPRECIATION OF EXPENSES THAT WERE CAPITALISED IN THE PAST |
$-6,581,221.34$ | $-6,581,221.34$ | ||||||
| EFFECT OF SALE AND LEASE BACK AGREEMENT | $-408,951.19$ | $-408,951.19$ | ||||||
| EFFECT OF VALUATION OF PARTICIPATIONS | -46,722,078.26 | -41.151.392.23 | ||||||
| EFFECT OF VALUATION OF SECURITIES | $-26,784,742.24$ | $-26,784,742.24$ | ||||||
| EFFECT OF REASSESSMENT OF INVENTORIES | $-3,190,000.00$ | $-3,190,000.00$ | ||||||
| OTHER RECEIVABLE WRITE-OFFS | $-4,639,237.34$ | $-4.639.237.34$ | ||||||
| PROVISION FOR STAFF RETIREMENT INDEMNITIES BASED ON ACTUARIAL STUDY |
$-2,334,502.00$ | $-2,334,502,00$ | ||||||
| OTHER PROVISIONS | $-2,994,851.58$ | $-2,994,851.58$ | ||||||
| RECOGNITION OF DEFERRED TAX ASSETS/LIABILITIES | 4,469,072.17 | 4,469,072.17 | ||||||
| OTHER AMOUNTS | 0.00 | |||||||
| WRITE-OFF OF DIVIDENDS THAT ARE NOT RECOGNISED | $-1,023,848.18$ | |||||||
| DEPRECIATED CONSOLIDATION DIFFERENCES AND MINORITY INTERESTS |
$-251,228.72$ | |||||||
| EQUITY AT THE BEGINNING OF THE PERIOD (30/6/2004) ACCORDING TO I.A.S. |
31,498,063.41 | 36,643,672.54 |
| COMPANY | GROUP | |
|---|---|---|
| 30/09/2004 | 30/09/2004 | |
| EQUITY FOR THE PERIOD (30/9/2004) ACCORDING TO THE G.A.S. | 109,010,032.58 | 110,285,032.58 |
| ADJUSTMENTS TO LAND AND BUILDINGS DUE TO VALUATION AT FAIR VALUE | 12,788,521.47 | 12,788,521.47 |
| DEPRECIATION OF EXPENSES THAT WERE CAPITALIZED IN THE PAST | $-7,582,391.87$ | $-7,582,391.87$ |
| EFFECT OF SALE AND LEASE BACK AGREEMENT | -359,734.24 | $-359,734.24$ |
| EFFECT OF VALUATION OF PARTICIPATIONS | -46,722,078.26 | $-41, 151, 392.23$ |
| EFFECT OF VALUATION OF SECURITIES | $-26,784,742.24$ | $-26,784,742.24$ |
| EFFECT OF REASSESSMENT OF INVENTORIES | $-3.190.000.00$ | $-3,190,000.00$ |
| OTHER RECEIVABLE WRITE-OFFS | $-5,454,015.06$ | $-5,454,015.06$ |
| PROVISION FOR STAFF RETIREMENT INDEMNITIES BASED ON ACTUARIAL STUDY | $-2,334,502.00$ | $-2,334,502.00$ |
| OTHER PROVISIONS | $-2,994,851.58$ | $-2,994,851.58$ |
| RECOGNITION OF DEFERRED TAX ASSETS/LIABILITIES | 4,984,629.74 | 4,984,629.74 |
| OTHER AMOUNTS | 0.00 | |
| WRITE-OFF OF DIVIDENDS THAT ARE NOT RECOGNIZED | $-1,432,607.37$ | |
| DEPRECIATED CONSOLIDATION DIFFERENCES AND MINORITY INTERESTS | ||
| 842,518.86 | ||
| EQUITY AT THE BEGINNING OF THE PERIOD (30/9/2004) ACCORDING TO I.A.S. | 31,360,868.54 | 37,616,466.06 |
| EMPLOYEE BENEFITS | ||||||||
|---|---|---|---|---|---|---|---|---|
| 31/12/2005 31/12/2004 |
||||||||
| A Parent company | ||||||||
| Employee salaries | 14,113,824.48 | 13,196,988.75 | ||||||
| Employee benefits | 208,992.15 | 193,763.57 | ||||||
| Employer contributions | 3,426,581.23 | 3,185,735.01 | ||||||
| Compensations for dismissal | 355,860.71 | 146, 169. 37 | ||||||
| 18,105,258.57 | 16,722,656.70 | |||||||
| Average number of employees | 650 | 659 | ||||||
| B. Group | ||||||||
| Employee salaries | 22,841,429.54 | 19,529,608.97 | ||||||
| Employee benefits | 622,717.38 | 480.345.37 | ||||||
| Employer contributions | 5,281,220.56 | 4,751,959.31 | ||||||
| Compensations for dismissal | 639,281.80 | 230,049.20 | ||||||
| 29,384,649.28 | 24,991,962.85 | |||||||
| Average number of employees | 1510 | 1500 |
The main actuarial assumptions are the following:
Salaries, wages and compensations will be automatically adjusted according to the prevailing change in the consumer price index
Salaries and wages increase by 4.0% per annum in nominal prices i.e. including inflation.
C. Interest Rate The discounting rate for the calculation is 5.0%
| EXPENSES BY CLASS | ||
|---|---|---|
| 31/12/2005 | 31/12/2004 | |
| A Parent company | ||
| Cost of sales | 57,980,880.12 | 55,758,413.45 |
| Employee expenses | 16,689,569.42 | 15,843,369.66 |
| Third party fees | 1,958,156.12 | 1,308,624.95 |
| Third-party benefits | 3,886,714.95 | 3,356,018.65 |
| Taxes - duties | 646,732.66 | 614,048.68 |
| Various expenses | 19,045,709.27 | 20,620,828.32 |
| Fixed asset depreciation | 2,152,490.84 | 1,967,713.99 |
| 102,360,253.38 | 99,469,017.70 | |
| B. Group | ||
| Cost of sales | 108,568,589.56 | 101,551,466.60 |
| Employee expenses | 27,968,960.13 | 24,112,675.82 |
| Third-party fees | 5,062,231.67 | 3,543,750.26 |
| Third-party benefits | 10,595,477.19 | 8,599,584.77 |
| Taxes - duties | 924,288.65 | 807,331.01 |
| Various expenses | 35,869,452.47 | 32,151,901.68 |
| Fixed asset depreciation | 3,443,783.22 | 2,983,773.49 |
| 192,432,782.89 | 173,750,483.63 |
Employee expenses have been reduced by the amount relating to expenses that have
been charged to the production of the parent company
| SHARE CAPITAL | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| NUMBER OF SHARES |
NOMINAL VALUE OF THE SHARES |
SHARE CAPITAL |
SHARE PREMIUM |
TOTAL | ||||||
| 31.12.2005 | 38,146,940 | 1.50 | 57,220,410.00 | 38,750,355.98 | 95,970,765.98 | |||||
| 31.12.2004 | 38,146,940 | 1.50 | 57,220,410.00 | 38,750,355.98 | 95,970,765.98 | |||||
| 31.12.2003 | 37,744,809 | 1.50 | 56,617,213.70 | 75,495,031.66 | 132, 112, 245, 36 |
| TABLE OF CHANGES TO FIXED ASSETS | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| ACQUISITION | IAS | MOVEMENT IN THE FINANCIAL YEAR | ||||||||
| DESCRIPTION | NET BOOK VALUE 31/12/2003 |
IAS ADJUSTMENT 31/12/2003 |
COST OF ABSORBED COs 31/12/2003 |
ADJUSTMENT OF ABSORBED COS |
ADDITIONS TRANSFERS |
ADJUSTMENT | DISPOSALS TRANSFERS |
NET BOOK VALUE 31/12/2004 |
||
| LAND | 1,996,236.41 | 5,008,659.09 | 19,448.50 | 632,940.02 | 906,587.24 | 8,563,871.26 | ||||
| BUILDINGS - BUILDING INSTALLATIONS AND CONSTRUCTION PROJECTS |
16,523,381.67 | 8,385,271.74 | 1,436,694.14 | 71,600.06 | 55,636 41 | 57,520.18 | 26,530,104.20 | |||
| MACHINERY TECHNICAL EOUIPMENT AND OTHER MECHANICAL EQUIPMENT |
2,086,849.80 | 3,571,554.20 | $-27,619.17$ | 623,535.42 | 0.00 | 76.30 | 6,254,243.95 | |||
| MEANS OF TRANSPORTATION |
1,060,713.97 | 594,158.00 | $-40,396,68$ | 169,571.77 | 0.00 | 51,458.35 | 1,732,588.71 | |||
| FIXTURES AND FITTINGS | 4,703,092.36 | 2,674,883.65 | $-354,055.62$ | 705,976.05 | 0.00 | 53.314.79 | 7,676,581 65 | |||
| FIXED ASSETS UNDER CONSTRUCTION AND DOWN PAYMENTS |
0.00 | 2,934.70 | $-2,934.70$ | 307,623.95 | 39,266.75 | 268,357.20 | ||||
| TOTAL | 26,370,274.21 | 13,393,930.83 | 8,299,673.19 | 279,533.91 | 1,862,343.60 | 964, 107.42 | 144, 116 19 | 51,025,746.97 |
| TABLE OF CHANGES TO FIXED ASSETS | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| DESCRIPTION | NET BOOK VALUE |
DEPRECIATION UP TO |
DEPRECIATION OF ABSORBED |
MOVEMENT IN THE FINANCIAL TOTAL YEAR DEPRECIATION |
NET BOOK VALUE | ||||||
| 31/12/2004 | 31/12/2003 | CO s 31/12/2003 |
DEPRECIATION | DISPOSALS TRANSFERS |
31/12/2004 | 31/12/2004 | |||||
| LAND | 8,563,871.26 | 0.00 | 0.00 | 8,563,871.26 | |||||||
| BUILDINGS - BUILDING INSTALLATIONS AND CONSTRUCTION PROJECTS |
26,530,104.20 | 9,529.95 | 243,628.72 | 1,128,021.22 | $-9,394.96$ | 1,390,574,85 | 25,139,529.35 | ||||
| MACHINERY TECHNICAL EQUIPMENT AND OTHER MECHANICAL EQUIPMENT |
6,254,243.95 | 1,357,652.05 | 2,234,409.41 | 335,901.27 | 76.29 | 3,927,886.44 | 2,326,357.51 |
| MEANS OF TRANSPORTATION |
1,732,588.71 | 855,267.51 | 326,701.38 | 134,940.94 | 12,174.39 | 1,304,735,44 | 427,853.27 |
|---|---|---|---|---|---|---|---|
| FIXTURES AND FITTINGS |
7,676,581.65 | 3,348,930.68 | 1,854,795.74 | 675,823.19 | 21,853.37 | 5,857,696.24 | 1,818,885.41 |
| FIXED ASSETS UNDER CONSTRUCTION AND DOWN PAYMENTS |
268,357.20 | 0.00 | 0.00 | 268,357.20 | |||
| TOTAL | 51,025,746.97 | 5,571,380.19 | 4,659,535.25 | 2,274,686.62 | 24,709.09 | 12,480,89227 | 38,544,854.00 |
| NET BOOK VALUE 31/12/2004 |
ADDITIONS TRASFERS $01/01/05$ - 31/12/05 |
DISPOSALS TRANSFERS $01/01/05$ - 31/12/05 |
TOTAL DEPRECIATION 31/12/2005 |
NET BOOK BALUE 31/12/2005 |
|
|---|---|---|---|---|---|
| LAND | 8,563,871.26 | 0.00 | 8,563,871.26 | ||
| BUILDINGS - BUILDING INSTALLATIONS AND CONSTRUCTION PROJECTS |
26,530,104.20 | 394,703.07 | 2,455,446.79 | 24,469,360.48 | |
| MACHINERY TECHNICAL EQUIPMENT AND OTHER MECHANICAL EOUIPMENT |
6,254,243.95 | 431,521.41 | 167,937.60 | 4,220,016.17 | 2,297,811.59 |
| MEANS OF TRANSPORTATION |
1,732,588.71 | 29,052.14 | 217,691.33 | 1,260,849.38 | 283,100.14 |
| FIXTURES AND FITTINGS |
7,676,581.65 | 920.718.67 | 73,389.17 | 6,541,420.56 | 2,072,490.59 |
| FIXED ASSETS UNDER CONSTRUCTION AND DOWN PAYMENTS |
268,357.20 | 111,285.77 | 0.00 | 379,642.97 | |
| TOTAL | 51,025,7746.97 | 1,887,281.06 | 459,018.10 | 14,387,732.90 | 38,066,277.03 |
Financial Statements For the period 1 January $-31$ December 2005
| TABLE OF CHANGES TO FIXED ASSETS | |||||||
|---|---|---|---|---|---|---|---|
| NET BOOK | IAS | MOVEMENT IN FINANCIAL YEAR 2004 |
ACQUISITION | TOTAL | NET BOOK | ||
| DESCRIPTION | VALUE 31/12/2003 |
ADJUSTMENT 31/12/2003 |
ADDITIONS TRANSFERS |
DISPOSALS TRANSFERS |
COST 31/12/2004 |
DEPRECIATION | VALUE 31/12/2004 |
| LAND | 3,095,103.21 | 5.849.599.11 | 1,067,212.40 | 237,032.14 | 9,774,882.58 | 9,774,882.58 | |
| BUILDINGS - BUILDING INSTALLATIONS AND CONSTRUCTION PROJECTS |
20,029,765.50 | 8,441,051.88 | 393,701.18 | 28,864,518.56 | 2,126,080.85 | 26,738,437.71 | |
| MACHINERY TECHNICAL EQUIPMENT AND OTHER MECHANICAL EQUIPMENT |
6,229,926.12 | $-29.038.32$ | 777.308.14 | 5,326.03 | 6,972,869.91 | 4,417,661.08 | 2,555,208.83 |
| MEANS OF TRANSPORTATION |
4,890,340.41 | $-40,396,68$ | 1,494,485.57 | 768,597.84 | 5,582,153,90 | 2,835,037.84 | 2,747,116.06 |
| FIXTURES AND FITTINGS |
12,151,562.89 | $-354.055.62$ | 867,344.81 | 213,202.68 | 12,451,649.40 | 10,168,796.89 | 2,282,852.51 |
| FIXED ASSETS UNDER CONSTRUCTION AND DOWN PAYMENTS |
128,227.86 | $-128,227.86$ | 334,447.65 | 39,266.75 | 295,180.90 | 0.00 | 295,180.90 |
| TOTAL | 46,524,925.99 | 13,738,932.51 | 4,934,499.75 | 1,263,425.44 | 63,941,255.25 | 19,547,576.66 | 44,393,678.59 |
| NET BOOK VALUE 31/12/2004 |
ADDITIONS DISPOSALS $01/01/05$ - 31/12/05 |
TOTAL DEPRECIATION 31/12/2005 |
NET BOOK VALUE 31/12/2005 |
|
|---|---|---|---|---|
| LAND | 9,774,882.58 | 79,463.68 | 0.00 | 9,854,346.26 |
| BUILDINGS - BUILDING INSTALLATIONS AND CONSTRUCTION PROJECTS |
28,864,518.56 | 586,193.19 | 3,311836.22 | 26,138,875.53 |
| MACHINERY TECHNICAL EOUIPMENT AND OTHER MECHANICAL EQUIPMENT |
6,972,869.91 | 627,082.45 | 4,743,610.35 | 2,856,342.01 |
| MEANS OF TRANSPORTATION | 5,582,153.90 | 693,224.49 | 3,176,552.25 | 3,098,826.14 |
| FIXTURES AND FITTINGS | 12,451,649.40 | 572,178.31 | 10,566,357.88 | 2,457,469.83 |
| FIXED ASSETS UNDER CONSTRUCTION AND DOWN PAYMENTS |
295,180.90 | 87,217.07 | 382,397.97 | |
| TOTAL | 63,941,255.25 | 2,645,359.19 | 21,798,356.70 | 44,788,257.74 |
| RECEIVABLES | |||||||
|---|---|---|---|---|---|---|---|
| LIABILITIES | |||||||
| BALANCES | GR. SARANTIS ABEE |
VENTURES | ZETA FIN | PAROS SA | ROMSAR | GRECOVET LTD | TOTAL |
| GR. SARANTIS ABEE |
0.00 | 200.00 | 7,875,133.00 | 200.00 | 200.00 | 37,213,08 | 7,912,946.08 |
| VENTURES SA | 918,698.36 | ||||||
| VENUS SA | 0.00 | ||||||
| ZETA SA | 246,728.72 | ||||||
| SARANTIS BELGRADE |
1,071,995.19 | ||||||
| SARANTIS BULGARIA LTD |
89,128.84 | ||||||
| SARANTIS SKOPJE LTD |
52,316.30 | ||||||
| SC SAR ROM | 7,021.04 | ||||||
| К. THEODORIDIS SA |
833,861.03 | ||||||
| SARANTIS CZECH |
249,302.96 | ||||||
| SARANTIS POLSKA |
911,583.58 | ||||||
| PAROS SA | 377,720.59 | ||||||
| GRECOVET LTD | 11,847.44 | ||||||
| SARANTIS UKRAINE |
276, 362.57 | ||||||
| ZETAFIN | 416,537.15 | ||||||
| SARANTIS TURKEY |
3,591.387.46 | ||||||
| TOTAL | 9,054,491.23 |
| SALES PURCHASES |
GR. SARANTIS ABEE |
ZETA FIN LTD | PAROS SA | GRECOVET LTD |
SARANTIS POLSKA |
TOTAL |
|---|---|---|---|---|---|---|
| GR. SARANTIS ABEE | 0.00 | 4,728,144.17 | 133,707.00 | 4,861,851.17 | ||
| PAROS SA | 229,436.02 | 125,965.71 | 355,401.73 | |||
| GRECOVET LTD | 32,878,43 | 813,486.25 | 846,364.68 | |||
| VENTURES SA | 1,325,057.49 | 1,325,057.49 | ||||
| SARANTIS ROMANIA | 3,181,516,56 | 352,635.00 | 3,534,151.56 | |||
| SARANTIS BULGARIA |
2,558,047.40 | 71,160.00 | 2,629,207.40 | |||
| SARANTIS BELGRADE |
2,125,412.13 | 276,825.00 | 2,402,237.13 | |||
| SARANTIS SKOPJE | 671,920.73 | 671,920.73 | ||||
| SARANTIS ANADOL SA |
1,304,418.78 | 1,304,418.78 | ||||
| SARANTIS UKRAINE | 384,397.48 | 105,078.00 | 489,475.48 | |||
| SARANTIS POLSKA | 4,508,834.44 | 4,508,834.44 | ||||
| K. THEODORIDIS S.A. |
18, 121. 76 | |||||
| TOTAL | 16,340,041.22 | 4,728,144.17 | 813,486.25 | 125,965.71 | 939,405.00 | 22,947,042.35 |
| GR. SARANTIS ABEE | ||||
|---|---|---|---|---|
| PARENT COMPANY | ||||
| STAKOD | DESCRIPTION | VALUE | ||
| 157.2 | PRODUCTION OF PET FOOD PESTICIDES | 5,759 95 | ||
| 1588 | PRODUCTION OF HOMOGENIZED DIET FOOD | 732,465.44 | ||
| 242.0 | PRODUCTION OF PESTICIDES & OTHER FARM CHEMICALS | |||
| 2451 | PRODUCTION OF SOAPS & DETERGENTS, CLEANING AND POLISHING PRODUCTS |
2,427,928.50 | ||
| 2452 | PRODUCTION OF FRAGRANCES & BEAUTY PRODUCTS | 25,236,966.48 | ||
| 251.9 | PRODUCTION OF OTHER PRODUCTS MADE OF RUBBER | 95,310.47 | ||
| 252.9 | CONSTRUCTION OF OTHER PLASTIC PRODUCTS | 2,811,638.00 | ||
| 274.2 | ALUMINUM PRODUCTION | 11,623,746 62 | ||
| 503.0 | WHOLESALE TRADE OF CAR ACCESSORIES | 766 47 | ||
| 513.8 | WHOLESALE TRADE OF OTHER FOOD | 3,077,114.07 | ||
| 514.5 | WHOLESALE TRADE OF FRAGRANCES & COSMETICS | 24,398,726 60 | ||
| 514.6 | WHOLESALE TRADE OF PHARMACEUTICAL PRODUCTS | 14,514,831 87 | ||
| 514.9 | WHOLESALE TRADE OF OTHER HOUSEHOLD UTENSILS | 26,082,628 21 | ||
| TOTAL | 111,007,882.68 |
| GR. SARANTIS ABEE | |||||
|---|---|---|---|---|---|
| GROUP 31/12/2005 | |||||
| STAKOD | DESCRIPTION | VALUE | |||
| 1572 | PRODUCTION OF PET FOOD PESTICIDES | 5,759.95 | |||
| 1588 | PRODUCTION OF HOMOGENIZED DIET FOOD | 732,465.44 | |||
| 245.1 | PRODUCTION OF SOAPS & DETERGENTS, CLEANING AND | 2,427,928.50 | |||
| POLISHING PRODUCTS | |||||
| 2452 | PRODUCTION OF FRAGRANCES & BEAUTY PRODUCTS | 86,859,339.27 | |||
| 2519 | PRODUCTION OF OTHER PRODUCTS MADE OF RUBBER | 95,310.47 | |||
| 252.9 | CONSTRUCTION OF OTHER PLASTIC PRODUCTS | 2,811,638.00 | |||
| 2742 | ALUMINUM PRODUCTION | 11,623,746 62 | |||
| 503.0 | WHOLESALE TRADE OF CAR ACCESSORIES | 12,905,362.29 | |||
| 5138 | WHOLESALE TRADE OF OTHER FOOD | 6,474,512.89 | |||
| 514.5 | WHOLESALE TRADE OF FRAGRANCES & COSMETICS | 44,128,469.80 | |||
| 5146 | WHOLESALE TRADE OF PHARMACEUTICAL PRODUCTS | 14,514,831 87 | |||
| 514.9 | WHOLESALE TRADE OF OTHER HOUSEHOLD UTENSILS | 26,082,628 21 | |||
$|208,661_3993.31|$
| CONSOLIDATED TURNOVER (In EUR mn) | 12m 2005 | y-o-y growth | 12m 2004 |
|---|---|---|---|
| Luxury W/o Estee Lauder | 15.88 | 7.49% | 14.77 |
| Mass Market Cosmetics | 73.53 | 20.31% | 61.12 |
| Household | 76.00 | 9.67% | 69.30 |
| Health & Care Products | 19.09 | 22.61% | 15.57 |
| Car Accessories | 13.27 | $6.09\%$ | 12.51 |
| PET | 6.32 | $-24.23%$ | 8.34 |
| Services to Estee Lauder J.V.* | 4.57 | $-24.07\%$ | 6.02 |
| Total Sales | 208.66 | 11.21% | 187.63 |
* Notes: Sarantis Group offers specialized services to Estee Lauder JV. Sarantis Group reports the particular income category for the last time.
| CONSOLIDATED EBIT (In EUR mn) | 12m 2005 | y-o-y growth | 12m 2004 |
|---|---|---|---|
| Luxury W/o Estee Lauder | 0.42 | 67.13% | 0.25 |
| Mass Market Cosmetics | 8.25 | 54.95% | 5.32 |
| Household | 7.17 | 5.53% | 6.79 |
| Health & Care Products | 2.58 | 24.79% | 2.06 |
| Car Accessories | 0.80 | $-17.61%$ | 0.97 |
| PET | $-0.16$ | 0.05 | |
| Services to Estee Lauder J.V. | $-0.08$ | 0.23 | |
| Income from Affil. Companies* | 9.18 | 3.53% | 8.87 |
| Total EBIT | 28.15 | 14.68% | 24.55 |
* Notes: This particular income is treated as operating and not as financial income, as Gr. Sarantis has a dominant position in the above affiliated companies.
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Dear Shareholders,
I welcome you and I would like to thank you for your participation in this General Shareholder's meeting. During 2005 Sarantis financial results demonstrated a constant growth in turnover as well as improved profit margins, which served the company's reinforcement.
During 2005 the company presented strong financial results in terms of turnover and profitability. This was the result of the Group's stable strategic growth, which is based on the company's greater expansion in the Eastern Europe, and mainly in the markets of Turkey and Ukraine, as well as in the strong support of its own products. The Group's turnover reached 208.66 mio $\epsilon$ , increased by 11.21% compared with the same period in 2004 (187,63 mio $\epsilon$ ). Earnings before taxes & interest (EBIT) amounted to 28,15 mio $\epsilon$ an increase of 14,68% versus 2004 (24,55 mio $\epsilon$ ). The Group for the specific period of time presented earnings before taxes (EBT) 25,28 mio €, increased by 15,17% versus 2004 (21,95 mio €). Finally, the Group presented earnings after taxes and minority interests (EATAM) 19,33 mio $\epsilon$ , increased by 13,93 % compared to 2004 (16,97 mio €). Regarding the breakdown of the Group's turnover per business unit, we can observe that the Group's core business units, mass market cosmetics, household products and health care products were the best performers and demonstrated growth of +20,31%, +9,67% and +22,61% respectively. Finally, the luxury cosmetics division also realized strong growth $(+7,49\%)$ .
Turnover's geographical breakdown indicates that Greece contributed 55,25% to total sales for 2005 (versus 61,77% in 2004), while Eastern European countries contribution advanced to 44,75% (versus 38,23% in 2004). Moreover, the Eastern European markets as a total realized double digit growth (+30,18%), with the highest performers Poland (+32,08%), Czech Republic (+44,73%), Serbia (+38,79%) and FYROM (+28,70%). Regarding the breakdown of the Group's EBIT per business unit we can observe that mass market cosmetics generated significant growth rates for 2005 (+54,95%). Moreover, household products and health & care products' profitability was increased by 5,53% and 24,79% respectively. Finally, luxury cosmetics realised significant growth for the period examined (+67,13%). Regarding EBIT geographical breakdown, we can observe that Eastern Europe generated significant performance (+45,69%), with Poland posting the highest growth rate of 169,59% compared to 2004. Finally, significant growth rates for the specific period were generated by Serbia (+101,75%), Bulgaria (+45,31%), and FYROM (+72,09%).
Sarantis management expects that the positive trends during 2005 will also continue for 2006. Additionally, according to the estimates of Sarantis' management, prospects for stronger demand of consumer products in Eastern Europe will remain strong over the following 5 years, and especially in countries, which recently joined or will join the European Union, and where Sarantis Group has established subsidiaries. At the same time, the management considers that the Company's expansion in the Russian market during 2006 will further serve the group's objectives.
Athens, 30th January 2006
| THE VICE | THE FINANCIAL | THE MANAGER OF | |
|---|---|---|---|
| PRESIDENT | THE CEO. | DIRECTOR | THE ACCOUNTING |
| KIRIAKOS P. | GEORGIOS A. | KONSTANTINOS | DPT. |
| SARANTIS | KOLETSOS | P. ROZAKEAS | VASSILIOS D. |
| I.D.No. P | I.D. No. X | I.D.No.P | MEINTANIS |
| 539590/95 | 926090/03 | 534498/94 | LD No = 016419/86 |
We certify that, the above mentioned Board of Directors' Report, which is consistent with the financial statements, and consists of 36 pages, is the one mentioned in the Auditor's Report dated February 23, 2006
Athens, 23rd February 2006 The Certified Public Accountant
John V. Kalogeropoulos SOEL. Reg. No: 10741
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