Orphanides supermarkets sales rise Cyprus

Orphanides Plc (ORF.CY) reported a 26% Year-on-Year increase in sales during the first nine months of 2008 to EUR 125.5 mln on the back of an increase in the number of the Company’s supermarkets in Cyprus, but there was a mild decline in overall profitability due to intense competition in the sector.
Gross margins mere maintained at 18.1% compared to 18.0% in 9M 2007 evidencing the efforts of Management to limit cost of sales’ growth at the same level as the growth of sales. Operating expenses increased by 45% YoY to EUR 23.6mln, whilst as a percentage of sales, they worsened by 250bps to 18.8% due to higher advertising and promotion costs as well as higher personnel and energy costs. Net finance costs decreased to EUR3.4mln from EUR3.8mln in 9M 2007 while bottom line profitability decreased 10.6% to EUR1.4mln from EUR 1.58 mln a year ago in the same period. EPS stood at EUR 0.0175. The Company’s Board does not propose a dividend payment at the current stage.