Orphanides warns of lower profit

Orphanides (ORF) issued a negative profit warning for its 9M07 financial results blaming the decline on lower revenue mostly because of reconstruction and renovation works at its supermarkets at Larnaca, Zakaki and Paralimni. Other factors that contributed to lower profit are among others, the increase in promotion and advertising costs and increased net finance expenses. On the other hand, despite the reduction in revenues, gross profit is expected higher, while administration expenses are expected lower.

A year ago in 9M06, ORF posted a net profit of EUR 3.86 mln yielding an EPS of EUR 0.477, whilst in 1H07 ORF posted a net profit of EUR 1.71 mln yielding an EPS of EUR 0.0211.