Dynamic Profit increase and improvement of Profitability in The 3TH Quarter

08.12.2010

In the 3rd quarter Arteria S.A. Group of Companies made a profit in the amount of 1.51 million compared to 0.95 million obtained in the previous year, which means the increase on the level of 59.51%. The Company focused in this period on improvement of profitability factors. Net profitability increased from 2.88% (in the 3rd quarter of 2009) to the level of 5.57% in the 3rd quarter of 2010, and gross profit on sales increased by 6.22 percentage points. In the period of 9 months of 2010 the profit of Arteria S.A. Group of Companies amounted cumulatively to PLN 3.81 million, and the revenues were on the level of PLN 79.60 million.

 

After three quarters of 2010 Arteria S.A. Group of Companies had revenues from sales amounting to PLN 79.60 million, that is 19.41% less than in the corresponding period of the previous year (that is PLN 98.77 million). The main reason for drop in revenue was the change of functional model of Rigall Distribution and transition to other settlement system with Citibank Handlowy. Since April 1, 2010 the company has been rendering services for Citibank Handlowy according to new principles, which are safer and they assure constant margin despite limiting the operational activity and lower revenues than in the previous year. As a result, next two quarters generated growing profit on operating activities of Rigall Distribution. This trend should be continued also in the 4th quarter of 2010.

 

Due to implementation of a new structure of management of Arteria S.A. Group of Companies as of January 1, 2010, it was possible to control costs more efficiently. In the reported period the cost of sales decreased by 22.27% in relation to the costs incurred by the Company after 9 months of 2009. As a result, the gross profit on sales increased in the reported period by 13.56%, from the level of PLN 7.88 million after three quarters of the previous year to PLN 8.95 million in the current year. EBITDA amounted to PLN 8.88 million (increase by 15.75%), whereas the profit on operations to PLN 6.02 million (increase by 12.29%). Net profit vested in the controlling company increased to the level of PLN 3.82 million, compared to PLN 3.71 million in the corresponding period of the previous year (change by 2.69%).

 

When analysing cumulatively the results of Arteria S.A. Group of Companies, it has to be taken into account that in the 1st quarter the Company had to incur non-recurrent costs in the amount of PLN 1.8 million (connected with restructuring of Rigall, start-up of Sellpoint Finance financial brokerage project, as well as the cost of shares issuance, about which the Company informed in the comment to the results for the 1st quarter). The 3rd quarter itself was the period of the expected increase, when the financial parameters important for the Company increased, including the key indexes: operating profit by 53.71% and the net profit by 59.51%.

 

In the 3rd quarter of 2010 Arteria S.A. Group of Companies had revenues from sales amounting to PLN 27.11 million, that is 17.33% less than in the corresponding period of the previous year (that is PLN 32.79 million). In the reported period the cost of sales decreased by 18.99% in relation to the costs incurred by the Company in the 3rd quarter of 2009. As a result, the gross profit on sales increased in the reported period by 6.22%, from the level of PLN 2.16 million in the 3rd quarter of the previous year to PLN 2.29 million in the current year, and the profit on operations increased from the level of PLN 1.38 million to PLN 2.16 million (53.71%). EBITDA amounted to PLN 3.25 million (increase by 52.89%). Meanwhile, the net profit vested in the controlling company increased to the level of PLN 1.51 million, compared to PLN 0.95 million in the corresponding period of the previous year (change by 59.51%).

 

The 3rd quarter of 2010 was the second full quarter in which Arteria S.A. Group of Companies was running its operational activity according to new, coherent management structure. Its base is currently made of 3 business sectors (call center, active sales, sales support) and nine support centers. New business model brought significant cost savings in the operation of all companies forming the Group of Companies, it also improved operational efficiency. This trend should be continued in the last quarter of the current year and it should contribute to deriving higher net profit vested to the controlling company than in 2009. The results of the last quarter confirmed determination of the Management Board of Arteria S.A. in pursuing improvement of profitability and limitation of debt. The indicated aims form a strategic direction of the activity of the Company for the next quarters.