financial results for quarter 1 of 2010 18 may 2010 sustainable profit, guaranteed future
TRANSCRIPT
Financial Results for Quarter 1 of 2010
18 May 2010
Sustainable profit, guaranteed future
This presentation covers Quarter 1 of Reporting Year 2010, i.e. the period from 1 January through 31 March 2010.
On 1 January 2010 the Group aligned its reporting year with the calendar one. As agreed with KNF (Financial Supervision Commission), the report for Q1 2010 compares its financial data against its performance in the period from August through October 2008.
In Quarter 1 of the Reporting Year 2010, the ACTION S.A. Group earned a consolidated net profit of PLN 8,020 M and ACTION S.A.'s individual net profit amounted to PLN 9,251 M
Net loss of subsidiary units dropped from PLN - 3,084 M in the compared Q3 2008/2009 to PLN - 1,231 M in Q1 2010.
Quality of the Year Award and Golden Quality of the Year Award for ActiveJet brand.
GROUP IN QUARTER 1 OF 2010
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[in PLN thousand] Quarter 1 2010
(January – March)Quarter 1 2008/2009(August - October)
Sales revenue 483,246 608,405
Gross profit on sales 39,660 62,372
Gross margin on sales 8.2% 10.3%
Cost of sales and marketing 27,316 31,770
Related to revenue 5.7% 5.2%
General administrative costs 5,421 6,788
Related to revenue 1.1% 1.1%
Other revenue and benefits 4,158 4,074
Other costs and losses 309 - 45,943
Operating result 10,772 - 18,055
Net financial costs 897 1,555
Net result 8,020 - 18,420
Net profit margin 1.7% - 3.,0%
SELECTED FINANCIALSACTION S.A. Capital Group, January - March 2010
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QUARTER 1 AT ACTION S.A.Comparable to the respective period of previous year
Sales revenue (PLN M)
482,120475,040
Q1 2009 (I - III) Q1 2010 (I - III)
8,610
12,630
Q3 2008/2009 (II - IV) Q1 2010 (I - III)
*
Net profit (PLN M)
• Net profit for Quarter 1 2010 is compared to that of Q3. 2008/2009 (February – April) because
the financial data for January through March 2009 is not representative due to the fact that the result for January
2009 includes exceptional margins on sales of goods purchased at significantly lower prices in 2008.
MARKET IN QUARTER 1 2010
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Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q1 2010/ Q1 2009
PLN MM PLN MM PLN MM PLN MM + / - %
Consumer electronics
1,477 1,438 2,057 1,443 - 16.3%
Photo 357 298 278 230 - 12.0%
Large home appliances
1,288 1,580 1,472 1,067 - 16.5%
Small home appliances
347 355 468 316 - 3.3%
Computer hardware 1,549 1.630 2,141 1,711 -8.2%
Telecommunications 303 306 339 247 -22.2%
Office equipmentand consumables 404 377 488 410 - 6.5%
Gfk TEMAX Polska 5,725 5,984 7,242 5,425 - 12.7%
Source: GfK Retail and Technology
The Company sees no perspective of revival of the IT or consumer/white goods market (low consumption, which induces a price war).
Maintaining good relationships with existing customers
Actions aimed at obtaining new sales channels and new customer groups:–
retail – food segment (Auchan, Carrefour, Real, Tesco)
–
retail – cash&carry segment (Selgros, Makro)
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retail – discounts (Biedronka, Kaufland, Lidl, Polo Market)
–
retail – DIY segments (Leroy Merlin, Castorama, OBI, Praktiker)
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retail – food wholesalers
–
electrical and lighting wholesalers
Increasing the number of active clients of the Export Department and broadening the Group's export offer
Increasing the Group's share in the consumer electronics/white goods distribution market:
–
market penetration in small and medium-sized retail sector
–
launching a dedicated sales team
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OPERATIONS IN STAGNATION PERIOD January - March 2010
Strong emphasis on increasing the Group's performance, searching for internal cost synergies
Optimising operating costs
Maximum reduction of new investment costs
Leveraging the synergy of co-operation with ACTION S.A., taking
advantage of its strong logistics potential in relationships with numerous e-
commerce customers:
– logistics
– and country-wide drop-shipping (Sferis and partner shops)
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OPERATIONS IN STAGNATION PERIOD January - March 2010
SFERIS COMPUTER PRODUCTS RETAIL CHAIN
Opening new "island stand" points of sale
– 9 stands open in Q1 2010
– target: 90 stands as at end of 2010
E-commerce drop-shipping program
– over 3,000 shipments issued in March 2010
Moving SFERIS Sp. z o.o. head office to ACTION S.A. HQ
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SFERIS January - March 2010
E-COMMERCEJanuary - March 2010
GRAM.PL PROJECT
Quarter with record-breaking sales: 24.6 % increase compared to prev. quarter
Heaviest visitor traffic so far
Launching an offer of APPLE products
Shopping for unregistered users – 10% share in all Quarter 1 sales (including 70% by new customers)
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A.PL ONLINE DELICATESSEN
Orders increased by over 105% (March 2010 to March 2009)
Average order value increase by 24% exceeding 250 zloty (March 2010 to March 2009)
Move to a new 1,200 sqm warehouse that will allow tripling order processing capacity and reduce overhead at the same time.
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THANK YOU FOR YOUR ATTENTION
Contacts for the press and representatives of the capital market
Anna Bielińska – Corporate Communication Director
Telephone: +48 22 332 16 96, Email: [email protected]
Dominika Lenkowska – Martis CONSULTING
Telephone: +48 22 244 57 09, Email: [email protected]