Vassiliko declares 1.5c dividend, profits decline

The Board of Vassiliko Cement Works (VCW) proposed the payment of an interim dividend payment of EUR 0.015 to its shareholders. Ex-dividend date is set on 10 December 2009. Furthermore, the island’s cement monopoly reported a weak set of 9M09 results with net profit tumbling 68.2% year-on-year to EUR 1.9 mln.
Total sales declined by 15.2% YoY to EUR 81.7mln as a result of the deteriorating local construction sector hampered by lower volumes. Gross profit fell by 39.4% to EUR 15.3 mln, whilst gross margin improved by 730bps to 18.7% owing to improved sales mix towards higher yielding products, VCW’s continuous cost containment efforts and full price effect in 3Q09. Total operating expenses rose by 55.2% to EUR 11.5mln.