Pepsi Cyprus reports same profits

Andreou & Paraskevaides (APE), the local bottlers of Pepsi, Seven Up and fruit juice distributors reported unchanged net profits during the first half of 2005 on flat growth in turnover.

Revenues remained almost flat at CYP 9.85 mln from CYP 9.8 mln a year ago with gross profit at CYP 4.2 mln, up by 1.5% year-on-year yielding a gross profit margin of 42.4%.

Operating expenses advanced by 2.8% to CYP 3.94 mln, representing 40.0% of turnover against 39.1% in 1H04. Net Profit reached CYP 248.029 in the first half compared to CYP 241.859 in the same period a year ago, with the net profit margin remaining almost unchanged at 2.5%. Earning per share stood at 0.14 cent compared to 0.13 cent. Book value per share was also flat at 14 cent compared to the traded price of 8 cent on the CSE.

For the second half of the year, the Company’s management anticipates competition to intensify with parallel imports in the local market becoming more aggressive.

In another development, the Company was granted the HACCP certification for the production, bottling and distribution of its products as well as for the distribution of juices, bottled water,

beer and iced coffee. This certification will apply up to June 2008.

Finally, following PepsiCo’s recognition of the significant improvement in the mechanical equipment, security and productivity of the Company’s production plant as well as the improvement in its product quality, Pepsico Inc. no longer requires the construction of a new

factory plant by the end of 2005. This was agreed by the two Companies in their licensing agreement in July 2000.