Orphanides Q1 profits surge 23%

Orphanides Public Co. Ltd. (ORF), the island’s largest retailer reported an impressive growth in both sales and profits during the first quarter as it shifted to private labeling and own imported goods, which helped boost margins.

Total turnover increased 7.19% in the first quarter of 2005 ending March to CYP 17.62 mln from CYP 16.44 mln, as the company increased the number of retail outlets to 10 from 7 and as its better pricing attracted more customers.

The addition of private labeled goods and own imports helped lift gross profit margins to 19.26% from 18.7% with gross profits surging to CYP 3.39 mln from CYP 3.08 mln previously.

Other income, mostly related to rental income and indoor advertising as well as shelf space rental jumped to CYP 412.552 from CYP 287.808. Total expenses meanwhile jumped 12.5% to CYP 2.69 mln from CYP 2.39 mln of which sales & distribution expenses amounted to CYP 1.82 mln while administrative expenses were CYP 877.500.

Operating profits were up 14% to CYP 1.1 mln, but finance costs were also sharply higher at CYP 576.000 from CYP 489.000 as Orphanides reduced overdue balances to creditors and instead borrowed heavily from the banks.

Pretax profits were CYP 529.000 from CYP 481.000 while net profits were up 23.3% at CYP 486.751 in the first quarter of 2005 compared to CYP 394.781 in the first quarter of 2004. EPS were 0.60 cent from 0.49 cent.

Book value per share improved to 0.41 cent with price to book value at 0.56x. Cash balances fell to CYP 820.225 from CYP 1 mln end of 2004. Bank loans and leases shot by CYP 4.94 mln higher to CYP 22.79 mln from CYP 17.85 mln end of 2004, which was compensated by a CYP 4.65 mln drop in trade creditor balances to CYP 22.07 mln from CYP 26.72 mln.