Attica Stores reports profits

Attica Department Stores SA, a subsidiary of the Athens-based Folli Follie Group, reported revenues of EUR 122 mln and net profits of EUR 7 mln in FY13.
Per business unit, City Link reported revenues of EUR 71.1 mln (+6% y-o-y), Golden Attica saw sales of EUR 36.4 mln (+5.5% y-o-y), and Attica Thessaloniki reported EUR 14.2 mln, up 40% y-o-y in its first year of full operation.
The company is reportedly debt-free with a liquidity buffer of EUR 30-40 mln, while it will invest EUR 10 mln for the development of a new Attica Store in Thessaloniki with estimated revenue of EUR 20 mln in first year of operation. For 2014, the company’s management is looking for a 5-7% revenue growth for the three department stores.
“We are expecting a 13% y-o-y- sales growth from department stores in FY14 including the new Attica Store in Thessaloniki and a 6% y-o-y revenue increase on a like-for-like basis, in line with management estimates,” said a note from Investment Bank of Greece.
Meanwhile, the merger of Attica Department Stores with the entities controlling Golden Attica (North Landmark SA) and Attica Thessaloniki (Attica Department Stores SA) was concluded on December 31, 2013. Folli Follie Group now owns 47% of Attica Department Stores, while businessmen Konstantinos Labropoulos (CEO), Konstantinos Tsouvelekakis and Alexis Sgoubopoulos jointly control 43% of the company’s share capital.
According to CEO Labropoulos, the merger of FFG’s subsidiaries operating Attica Stores into one entity will improve operational efficiency, produce synergies and strengthen the balance sheet.
IBG said it remains positive on the stock, last trading at 26.49 euros for a market cap of 1.77 bln, and maintains a ‘buy’ position.