Hellenic results beat analysts' forecasts

Tina Milton

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The group's nine months profits are better than expected, although still lower than the retailer had originally predicted

Hellenic Duty Free Shops (HDFS) has revealed higher than expected results for the nine months ending September 30. Pre-tax profits, after the deduction of minority rights, increased by Eu17.6m ($20.4m) reaching Eu47.7m ($55.4), up from Eu40.6m ($47.2m) for the same period in 2003. This was above analysts' forecasts of a 15% rise to Eu46.7m ($54.3m).

Consolidated sales for the period increased by 32% reaching Eu231m ($268m) compared to Eu174.6m ($202m) in 2003. Analysts expected group revenue to rise by 25% to Eu218m ($253m).

The increase was attributed to the sales growth of the parent company (Retailers Folli Follie and Germanos have a combined 49% stake) by approximately Eu20m ($23.2m) and subsidiary Efsimon Collections by approximately Eu34m ($39.5m) compared to the same period in 2003.

During the third quarter the firm opened two new fashion outlets at the border stations of Promahonas (Bulgarian border) and Evzoni (Macedonian border) totalling 800sq m (8,608sq ft) and a new store at the airport on Karpathos island. The company also opened a designer fashion store and accessories store, a humidor and a toy store in the extra-Schengen area of Athens International airport totalling 270sq m (2,905sq ft). In the intra-Schengen area, it opened the Mastiha Shop, a new concept store featuring Greek confectionery products. Refurbishment of the border shops at Niki and Doirani and a store at Patra has also been completed.