Redundancies hurt KEO

KEO Pcl (KEO) released its first half results posting a Loss of CYP 3.2 mln compared to a net profit of CYP 74.000 in the same period a year ago. The loss is attributed to a one-off redundancy cost amount of CYP 3.3 mln associated with the recent layoff of 120 of its employees.

Total Revenues decreased by 1.5% YoY to CYP 15.6 mln due to lower export sales in the alcoholic drinks product category. However, cost of sales also decreased by 2.8% YoY resulting in a stable gross profit figure of CYP 6.8 mln, whilst gross profit margin increased by 70 bps YoY to 43.7%.

A 2%YoY increase in operating expenses led to a reduction in first half operating profit to CYP 621k vs. CYP 674k in 1H05.