Sfakianakis Group: Net profits 32.3m euros in 2023

A significant increase of 196% in net profits was noted by Sfakianakis SABE for the year 2023, as they amounted to € 32.3 million, compared to 10.9 million in the year 2022. At the same time, in 2023, total sales of the company increased significantly, which amounted to € 474.6 million. increasing by 35.2%, compared to sales of € 351.0 million in 2022. The company’s sales were mainly affected by the increase in sales of retail cars, long-term, and short-term leases, as a result of significant car market reinforcement and continued growth in tourism. Earnings before tax, financial costs and depreciation (EBITDA) amounted to € 91.8 million compared to € 58.1 million last year, increased by 57.9%, while profits before tax for 2023 amounted to € 40.0 million compared to € 12.2 million in 2022 with an increase of 228%. The total amount of long-term loans fell by 1% and was € 289.8 million in 2023, compared to € 293.2 million in 2022. Classifications in the car and motorcycle market The purchase of the car and motorcycle moved upwards in 2023, as a result, mainly, of normalization of the supply chain, showing an increase in total classifications by 27.7% and 18.3% respectively compared to 2022. The classifications of new Suzuki cars in 2023 amounted to 7,606 units (against 4,415 in 2022) and the market share was formed at 5.7% (against 4,8% in 2022) ranking Sfakianakis SABE in 7th place among car importers. The market share of the total retail sector in passenger cars (Premium and Mainstream) in 2023 was formed for the company at 9.2% (2022: 8.9%). Suzuki in 2023 also carried out 470 motorcycle classifications corresponding to a 1,0% market share. As far as 2024 is concerned, despite maintaining financial costs at high levels, the Company’s Management estimates that the Suzuki Car Introduction activity will further increase its share and at the same time maintain its profitability at high levels. Accordingly, after-sales is estimated to increase its sales and profitability through continuous investments in new technologies and in the training of its personnel by assessing the new data generated on the market by electric drive, while efforts are intensified based on the opportunities presented in the activity for After Sales and the sale of used cars. Long and short leases In 2023, the company’s long-term car rental industry experienced a significant increase in sales and profitability compared to 2022, while it continued for another year to new programs and new technologies to meet the needs of the company’s customers in the context of the continuous increase in the market for long-term car rentals. As regards the short-term car rental industry, in 2023 a significant increase was observed as a result of the increase in tourist arrivals compared to 2022. Based on the positive progress of the industry during the first months of 2024, the Company’s Management estimates that this year will also be improved for the activity of short-term car rental at revenue level. Important events of 2024 In 2024, the company’s discussions with its sole bond holder “SATURN FINANCIAL INVESTOR DESIGNATED ACTIVITY COMPANY” were concluded to restructure its bond loan, taking into account the new conditions of increased financial costs and, above all, the positive prospects of the sectors where the company operates. In this context, on 1 August 2024, a contract was signed to amend the company’s bond loan on favourable terms, which, combined with the increase in sales and profitability of the company, sets the basis for the achievement of the company’s important strategic objectives for the years to come. In January 2024 the company SFAKIANAKIS E-MOTORS Monoface S.A. was founded, in which the company participates with a rate of 100.0%. SFAKIANAKIS E-MOTORS is the Official Distributor of BYD in Greece. On 10 February 2024 the company acquired 100% of AJAR Car Rental GmbH, which operates in the short term car rental (Rent-A-Car) in Austria, operating five stations, including at the major airports in Austria. Within 2024, the activity of short-term car rental (Rent-A-Car) operated three new stations in Milos, Paros and Samos, reaching the total 16 privately owned stations. Costis – Liquidity The Management of Sfakianaki Group examines and takes all measures to keep the costs at desired levels and ensure the company’s liquidity at satisfactory levels. The company’s strong cash position on 31.12.2023 (funds available € 19.811.804) is the most important guarantee that the company will be able to face any future challenges. The President and CEO of Sfakianakis Stavros Takis Group said: “Sfakianakis Group has managed successfully in recent years the extremely adverse economic environment, which was shaped by the economic crisis, the Covid 19 pandemic, the supply chain disturbances and the energy crisis. Today, through strategically designed movements the conditions for the dynamic development of the Group have been created, which are already reflected in the financial results of 2023 and the significant increase in sales and profitability. With the favourable amendment of the company’s bond loan and further strengthening its sizes, we expect to further improve our financial results in 2024.”