In 2015, SIDMA presented a significant improvement in its results both at Company and Group levels, despite the weak demand for steel products in the domestic market, following the imposition of the restriction on capital movements and despite the continuing problems of lack of liquidity for Greek businesses. Namely, sales volume was increased, the gross profit margin was improved, operating costs were further decreased, operating profits were more than doubled and losses were decreased.
More specifically, at Group level, the turnover amounted to E 96.5 million, reduced by 4.0% compared to that of 2014, with the average selling prices for 2015 being lower by 5.4% compared to those of 2014. Taking into account the Parent sales on behalf of third parties, the turnover amounted to E 125 million from E 129 million in 2014, presenting a drop by 3.1%. The percentage of gross profit was increased from 7.6% in 2014 to 8.3% in 2015, showing an improvement by 8.5%, while operating expenses were decreased by 6.7% from E 12.6 million in 2014 to E 11.7 million in 2015. As a result, there was an improvement in the Group's earnings before interest, taxes, depreciation and amortization (EBITDA) by E 1.3 million, i.e. from E 0.9 million last year to E 2.2 million in 2015. Last but not least, the Group's pre-tax results amounted to a loss of E 5.8 million compared to a loss of E 10.1 million in 2014, thus improved by 42%.
At Parent level, the turnover of SIDMA in 2015 was reduced by 8.7% to E 51 million from E 56 million in 2014. Taking into account the Parent sales on behalf of third parties (dealership), gross sales amounted to E 79.7 million from E 84.5 million in 2014, reduced by 5.7%, just as the decrease in the average selling price of all company's products in 2015 compared to 2014. The percentage of gross profit was increased from 9.2% in 2014 to 9.7% in 2015, improved by 5%, while operating costs were decreased by 8.0% from E 8.5 million in 2014 to E 7.8 million in 2015. As a result, earnings before interest, taxes, depreciation and amortization (EBITDA) were increased by 112% compared to last year, to E 1,320 thousand from E 624 thousand, while pre-tax results were improved by 49%, i.e. from a loss of E 8.1 million last year to a loss of E 4.2 million in 2015.
On 29/12/2015 the Company merged the subsidiary PANELCO SA through absorption, according to the provisions of Articles 68-78 of L.2190 / 1920, in conjunction with articles 1-5 of L.2166 / 1993 under the Transformation Balance sheet of 30/06/2015. Therefore, the "statement of financial position”, at company level, includes the relevant figures of the acquired PANELCO while the "income statement", at company level, has not been affected by the corresponding figures of PANELCO at all.
PANELCO recorded a decrease in its turnover by 5% compared to 2014. This is due to a drop in the average selling price of its products, although sales volume was increased by 5% compared to last year because of an increase in sales by 30% abroad. Namely, the turnover amounted to E 11.8 million in 2015 from E 12.4 million in 2014.
Regarding the subsidiaries in the Balkans, SIDMA Bulgaria recorded an increase in its turnover by 13.3%, while SIDMA Romania a decrease by 9.2% compared to 2014. The turnover increase in Bulgaria would have been higher, like in Greece, and the turnover decrease in Romania lower if sale prices had not gone down by 5.1% and 6.8% respectively. Namely, the turnover of SIDMA Bulgaria amounted to E 16.3 million compared to E 14.4 million in 2014, while the turnover of SIDMA Romania amounted to E 18.3 million compared to E 20.1 million in 2014. The pre-tax financial results of SIDMA Bulgaria were improved by 62% and those of SIDMA Romania by 31%.
In addition to the above, SIDMA increased its liquidity through the appropriate management of working capital, to ¤ 12.3 million from E 8.8 million for the Group and to E 11.0 million from E 6.3 million for the Parent company respectively. Considering the continuing uncertainty in the Greek market, the strategic objective of the Group is focused on managing the liquidity risks including the credit risk, as well as on retaining increased cash flows as a means to react in case of any possible negative developments in Greek economy.