Eco Supplies Europe AB / 2010 Results and increase of consolidated sales of 250% from 2009 . Processed and transmitted by Thomson Reuters ONE. The issuer is solely responsible for the content of this announcement.
For the year ended December 31, 2010, the Company reported net sales of € 20.43 million, an increase of 250% over net sales of € 5.84 million for 2009. Gross profit was € 6.69 million, or 33% of sales compared to gross profit of € 4.32 million, or 74% of sales in 2009.
For the year ended December 31, 2010, the Company reported operating expenses, which were € 6.48 million or 32% of sales, compared to € 3.77 million or 65% of sales for 2009.
Consolidated EBITDA for 2010 was € 0.21 million, compared to € 0.54 million for 2009.
Net loss for 2010 was € 0.69 million compared to net loss of € 0.33 million for 2009.
The significant change in revenue and cost structure is due to that the company has opened a new business area, by acquiring Gällivare Photovoltaic AB, a Swedish manufacturer of solar power modules, in July 2010 (further renamed to Eco Supplies Solar AB). Throughout 2010, Eco Supplies incurred extraordinary costs due to this acquisition and restructuring of the acquired company.
Full 2010 yearly report is available here.
Progress and Outlook for 2011
The solar module market has been slow in the first half of the year, mainly due to political and regulatory changes in the largest markets in Europe. Additionally, Eco Supplies' solar module sales have also been affected by a shortfall of a non-performing client, Helios Technology. Due to both factors, the company's cash flow has been affected adversely in 2011 H1.
Eco Supplies has accumulated a significant order book and new clients within 2011 H1 for product deliveries in 2011 H2. The relevant regulatory frameworks have become more favourable to European manufacturers, such as Eco Supplies, which is expected to further increase demand. Consequently, Eco Supplies production is expected to increase significantly in the remaining half of 2011.
Eco Supplies is not exposed to long-term supply contracts for raw material and has an advantage in the current market of decreasing raw material prices. Falling prices of modules have not affected the gross margins negatively: on the contrary the company has been able to increase margins compared with 2010.
The board of directors has resolved to focus operations on solar energy, and to subsequently divest from other business areas by selling off the subsidiaries in the office supplies division.
The company will give further notices regarding the outlook for 2011 as well as progress of selling office supplies business division and increase of capital and funding in September 2011.
The Board of Directors
About Eco Supplies Europe AB: visit www.ecosupplies.eu
Eco Supplies Europe AB is a Swedish holding company that is listed on Deutsche Börse (www.boerse-frankfurt.de). The company's shares are trading on Xetra under the ticker 7C0. It is a fast growing company with activities in Renewable Energy Supplies and Ecological Office Supplies. Solar division established in 1992 and formerly known under the brand name Gällivare PhotoVoltaic AB, Eco Supplies Solar was the first company of its kind in northern Europe and it is the largest Scandinavian producers of high quality Solar Power Modules.
--- End of Message ---
Eco Supplies Europe AB
Stora Åvägen 21 Askim Sweden
WKN: A0X9L7;ISIN: SE0001717885;
Listed: Open Market (Freiverkehr) in Frankfurter Wertpapierbörse;
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the
information contained therein.
Source: Eco Supplies Europe AB via Thomson Reuters ONE