Frou-Frou lifts profits, dividend

Alkis Hajikyriakou (Frou-Frou) Biscuits Public Co. Ltd., reported an increase in 2006 sales and profits based on the preliminary results with the company also declaring a dividend.

Group sales improved 9.4% YoY to CYP 13.4 mln or EUR 23.3 mln in 2006 compared to CYP 12.2 mln or EUR 21.3 mln in 2005. The Gross Profit was CYP 6 mln or EUR 10.5 mln with the gross profit to sales margin for 2006 at 45.1%, up from 44.2% in 2005.

Other income, namely dividends that the Group receives on its investment holdings improved to EUR 900.000 from EUR 742k a year earlier.

Operating profits increased to EUR 2.9 mln from EUR 2.6 mln while pretax profits were EUR 2.97 mln for 2006, up 14.2% compared to EUR 2.6 mln in 2005.

Frou-Frou announced that net profit amounted to CYP 1.501.866 or EUR 2.597.477 for 2006, up 14.5% compared to CYP 1.300.840 or EUR 2.268.274 in 2005. Earnings per share were 2.9 euro cents from 2.53 euro cents a year earlier.

Despite the extensive capital investments that the company is undertaking, the Board of Directors of Alkis Hajikyriakou (Frou-Frou) Biscuits Public Co. Ltd., decided to declare a dividend of 3.8 Cyprus cent or 0.66 euro cents for 2006, up from 3.7 Cyprus cent a year earlier. The dividend will cost CYP 340.619 in cash payment.

The company also revealed that its book value per share amounted to 27.83 Cyprus cents, from 23.24 previously. The number of debtor days averaged 79 for 2006 from 80 in 2005, while credit days increased to 109 from 92. Stock turnover was at 85 days from 81 in 2005.

In line with the capital investments undertaken for the construction of state-of-the-art new production facilities, surplus funds fell to CYP 316.258 end of 2006 from CYP 2.8 mln end of 2005. The company announced that the ratio of liquidity was 2.27 end of 2006 from 3.07 end of 2005.

The Board believes that the results for 2007 will show an improvement to 2006 subject to trade and commerce conditions in the country improving further.