Mecalux kept up its significant growth with sales rising by 6% and profits increasing by 2%. Consolidated sales for 2008 stood at 636 million euros at the end of 2008 in contrast to 598 million euros for 2007. One of the markets which contributed most to this development was Brazil, where sales increased by 71% in local currency. The net profit of the company reached 36 million euros, representing a rise of 2%. Also worthy of note was the excellent liquidity of the company with a sharp increase in net equity, which practically doubled, increasing from 222 million euros to 388 million euros, up 75%. This optimal situation represents a privileged and strategic position for the future development and competitiveness of the company.
Sales by geographical areas: significant growth in MERCOSUR and Eastern Europe.
Sales remained stable in the company’s Southern European markets (Spain, France, Italy and Portugal). The development of the Central and Eastern European markets was very positive with turnover increasing by 30% over the same period for the previous financial year. The Polish subsidiary managed to boost its turnover by 41%.
The American markets of the NAFTA area experienced a decline of around 3% due to the current economic situation. This market represents 14% of the group’s sales.
During this fiscal year, sales in South America rose by 53%. In Argentina, where the Mecalux group has maintained its position of leadership, sales grew by 57% in local currency.
Mecalux is continuing its decisive expansion and growth strategy, along with the launch of products and systems which are consolidating the company’s strategic position at an international level. Its leadership and excellent financial situation have placed Mecalux in a magnificent position with expectations for growth in the world market.
Profitability and debt ratios
Mecalux’s net debt is now 27 million euros compared to 169 million euros for the previous year, which represents an improvement of 84%. Net equity increased by 75%, rising from 222 million euros to 388 million euros in 2008. The ratio of net debt over net equity has therefore fallen by 91%, now standing at 0.07% compared to 0.76% for the 2007 fiscal year. Meanwhile, the net debt ratio over EBITDA is 0.34% in comparison to 2.04% for the 2007 fiscal year, representing a decrease of 83%. The EBITDA of the company now stands at 78 million euros compared to 83 million for the previous financial year.
The increase in share capital of 168 million euros in July 2008 should also be remembered with Caja Madrid taking up a 20% holding in the company.