Vision International People Group reported a 6% decline in turnover during the first nine months of the year to USD 56.8 mln due to changes in the replenishment of the stockholding levels of the franchises in the CIS & Baltics, but expects overall sales for 2005 to be significantly better than 2004 figures.
The fact that third quarter sales jumped 42% to USD 16.3 mln from USD 11.5 mln was cited by the company as evidence that it is on track to meet its target.
Cost of sales for the nine months to 30 September 2005, reached the level of 25,7% of sales compared to 21,3% in the same period in 2004, representing both a change in the sales mix planned for this period of 2005, as well as the effect of the Ukraine companies acquisition.
Commissions reached USD 28.9 mln compared to USD 36.0 mln for the same period in 2004 due mainly to reduction of the commissions accrued on unsold stock on the stocks maintained by the operations in Ukraine.
Selling & Distribution Costs increased USD 0.4 mln to USD 1.5 mln or 2,7% of sales, compared to USD 1.2 mln, or 1.9% of sales in the same period last year. Administrative expenses increased to USD 7.1 mln compared to USD 4.3 mln representing an increase of USD 2.8 mln, or 63.2%. The increase is mainly attributable to the move of the headquarters of the Group to Nicosia, Cyprus and the associated costs with regards to both the relocation of business critical functions to Cyprus, as well as the further strengthening of the administrative and operational infrastructure in Cyprus.
The share of profits of the investment of the Group in Nutripharma Ltd incurred in September 2004 and the acquisition of the Vision Franchise operations in Ukraine on 1 January 2005, contributed USD 0.9 mln and USD 0.1 mln to the profitability of the Group during the current reporting period.
Net Profits attributable to shareholders amounted to USD 6,0 mln compared to USD 6.1 mln a year ago. Earnings per share were 7,80 cents compared to 7,96 cents.
Despite the heavy investment and expansion in new markets, holding cash and cash equivalents amounted to USD 4.2 mln compared to USD 4.3 mln as at 31 December 2004.
