Marfin Investment Group reported consolidated sales of €372.5m in the first quarter of 2011, while gross profit amounted to €29.2m.
At company level, the loss after tax for the quarter amounted to €4.6m, according to an announcement.
At group level, the consolidated loss after tax and minorities for the quarter from continuing and discontinued operations amounted to €67.8m, compared to a loss of €89.5m the year before. The performance in the first quarter is in-line with management΄s expectations while the improvement is expected to be greater in the next quarters.
From an operational perspective, despite the first quarter being traditionally the slowest in most of our sectors, many of our portfolio companies have improved their results over the same period last year.
The Group΄s Net Asset Value stands at €2.1bn, or €2.70 per share; current cash at company level amounts to €497.4m.
Following a two-year defensive strategy placing emphasis on maintaining market shares, implementing cost-cutting initiatives, and substantial deleveraging, Marfin Investment Group has shifted its strategy in the new year and is now focused on emphasising share value appreciation in the medium-term.
Following restructuring initiatives from last year and the first quarter of this year, our companies will be in a position to build on these developments, demonstrating their positive impact on their results over the coming quarters.
Moreover, the group reported results with consolidated sales for the quarter of €372.5m and a consolidated loss after tax and minority interest of €67.8m. At company level, losses totalled €4.6m for the quarter. The net asset value (NAV) of the group currently stands at €2.1bn, representing a NAV of €2.70 per share. As in previous years, the first quarter΄s profitability was affected by high seasonality which traditionally impacts many of MIG΄s portfolio companies. MIG΄s largest investments, such as Vivartia and Attica, as well as companies such as Hygeia, Olympic Air, Sunce and Hilton, have historically experienced a reduction in sales and traffic during the first quarter, ahead of the substantially busier second and third quarters of the year.
Despite this, MIG΄s companies continue to strengthen their positions as leaders in their respective sectors, holding leading market positions and the highest brand awareness amongst customers, as well as bringing new, innovative products to market during the quarter.
Commenting on the Q1 results, Dennis Malamatinas, Marfin Investment Group΄s Chief Executive Officer stated: "As we announced at our 2010 Full Year results, this year marks the beginning of a shift in our corporate strategy. From a defensive strategy, focusing primarily on the strengthening and maintaining of leading market positions of our portfolio companies, we have now moved towards placing more emphasis on enhancing and realising the value of our investments. We have now shifted our efforts, seeking to create upside in shareholder value in the medium term.
Despite the shift, we continue to be satisfied of the enviable market shares and leading positions of our portfolio companies, and of the efforts that have been made at the level of each company to continue to contain costs and increase consumer loyalty to our brands. From an operational perspective, despite the traditionally slow nature of the first quarter in many of our sectors, such as food, transportation, and leisure, we have managed to improve our results over the same period last year, resulting in a lower loss for the quarter. Whilst our companies are still undoubtedly affected by the current state of the economy, and although they will continue to be so through the rest of the year, we believe that our collective efforts have established the strongest bases from which our companies can grow their businesses as the economic conditions improve.
Despite this continuously challenging economic environment, these efforts have resulted in the strengthening of our companies in relation to their competitors.
During the first quarter, we have embarked on many initiatives that have made real impacts on our performance for the year thus far. At Olympic, we have refocused our routes and destinations to transform into a regional airline, rationalising many of our longer haul routes and realising profits on the sale of their slots - and have entered into several cooperation agreements with other airlines, strengthening our offerings to many destinations and providing our customers with even more opportunities than before. At Hygeia, our healthcare group, we completed the disposal of our hospitals in Turkey, which has already begun to positively affect the running results of the company. At Attica, we have just announced a joint service agreement with ANEK Lines, providing our customers with flexibility and continued value in several of our routes.
The first quarter of the year is traditionally the weakest, due to seasonality in a number of our businesses. Despite that, our results are already improved versus last year and we expect by year-end to demonstrate substantial operating improvement versus 2010. Finally, the trends recorded and the initiatives adopted indicate that we are on track to a return to full-year profitability in 2012.
We continue to firmly believe that the group΄s portfolio companies are well on their way to yielding operating profitability and with this belief we continue to provide our customers with the best products and services possible, contributing towards a realisation of value for our shareholders."
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