Mitsides Public Company Ltd

Earnings Release • Feb 28, 2014

ANNOUNCEMENT 27/2/2014: PRELIMINARY UNAUDITED CONSOLIDATED RESULTS FOR 2013

	2013	2012
	€	€
Turnover	38.999.047	40.100.656
Gross Profit	9.696.694	9.080.850
Loss before Tax	(686.824)	(1.708.409)
Tax	(82.470)	(58.292)
Loss after Tax	(769.294)	(1.766.701)
Basic and fully diluted Earnings
per share (cents)	(9,38)	(21,55)
Weighted average number of shares	8,200,000	8,200,000

The Board of Directors of Mitsides Public Company Limited at their meeting held on 27 February 2014, examined and approved the preliminary results and explanatory statement of the Group (including Mitsides Public Company Ltd, Blue Azul Investments Ltd, Larnaca Flourmills Zenon Ltd and the Serbian company Mitsides Point D.o.o.), for the year ended December 31 2013.

EXPLANATORY STATEMENT

• 1. The preliminary consolidated results for the year ended 31 December 2013 have not been audited by the Group's external auditors, Messrs PricewaterhouseCoopers Ltd.
• 1. The preliminary consolidated results were prepared using the same accounting principles as those applied in the preparation of the annual financial statements of the Group and are consistent with International Financial Reporting Standards.
• 1. The basic and fully diluted earnings per share was calculated based on the weighted average number of shares issued during the reported years.
• 1. The Group's turnover in 2013 amounted to €38.999.047, compared to €40.100.656 in 2012, showing a decrease of 2,75%. The decrease was mainly due to the decreased sales of the Flour and Pasta Divisions of Mitsides Public Company Ltd.
• 1. The Group's gross profit in 2013 amounted to €9.696.694, compared to €9.080.850 in 2012. The gross profit margin amounted to 24,8% in 2013, compared to 22,64% in 2012. The increase was mainly due to an increase in finished product prices of the Flour Department of the Serbian subsidiary Mitsides Point D.o.o..
• 1. The Group's results were adversely affected by the results of the subsidiary Mitsides Point AD, which is based in Serbia and whose loss for the year 2013 amounted to €821.584, compared to a loss of €1.927.224 in 2012.
• 1. During 2013, the Group had an impairment loss on its Laiki Bank current account of €375.431.
• 1. The Group's loss includes the loss from revaluation of investment property amounting to €255.000 for 2013, compared to a loss of €117.018 for 2012.
• 1. During the year the Group had a foreign exchange loss of €29.370, compared to a foreign exchange loss of €249.221in 2012.
• 1. The provision for bad and doubtful debts in 2013 amounted to €667.000, compared to €396.294 in 2012.
• 1. The Group's loss after tax for 2013 amounted to €769.294, compared to a loss of €1766.701 in 2012.
• 1. Based on the evidence to date, the Group's results in 2014 are expected to be improved compared with those of 2013. The Board of Directors closely follows economic developments both in Cyprus and internationally, and takes measures to reduce operating costs and increase productivity and turnover. The recession prevailing in Cyprus may significantly affect the company's operations, as the lack of liquidity in the market, along with the rising unemployment, and the declining Gross Domestic Product may cause chain reactions in all sectors of the economy, which may affect the group's results.
• 1. The Group's preliminary results and explanatory statement for the year ended 31 December 2013, will not be sent to shareholders but will be available at the company Headquarters in Tefkrou Anthia 16, Dhali Industrial Zone (Tel. 22572020), as well as on the company's website at www.mitsidesgroup.com.