Orphanides margins improve in first half

Orphanides Public Co. (ORF) saw its margins improving in the first half of the year, but the addition of new stores, higher fuel costs and other related expenses forced net profits to hover at about the same level as last year.

Total sales in the first half were up 5.98% year-on-year to CYP 37.14 mln from CYP 35.04 mln, with most of the gains due to the opening of three new stores, taking the total to 10 islandwide. In the second quarter, sales were up 4.8% y/y to CYP 19.5 mln.

Gross profit in the first half was up at CYP 6.68 mln from CYP 5.83 mln a year ago, while the gross profit margin jumped to 18% from 16.64% before.

Other income, mostly involving indoor advertising and rental income was steady at CYP 1.18 mln from CYP 1.13 mln before. Total expenses, including financing costs jumped 15.5% y/y to CYP 6.7 mln from CYP 5.8 mln, with ORF blaming most of the increase on new hiring, higher electricity costs and promotional expenses.

Pretax profits improved by 3% to CYP 1.16 mln while net profits were marginally lower at CYP 1.026.285 in the first half compared to CYP 1.047.612 a year ago. Earnings per share were 1.27 cent from 1.29 cent before.

Net profit for the second quarter was sharply down at CYP 539.534 compared to CYP 652.911 a year ago.

Book value per share according to Financial Mirror calculations was 41.1 cent compared to 21 cent per share price on the CSE.

In the balance sheet, ORF revealed CYP 75.2 mln in investments in property, CYP 7.9 mln stock of goods from CYP 7.4 mln end of last year, cash balances of CYP 1.8 mln from 1.03 mln.

Bank debt and leases jumped to CYP 22.7 mln from CYP 17.46 mln a year ago while overdue balances to trade creditors declined to CYP 22.32 mln from CYP 26.72 mln at the end of last year.