Positive dynamics of the LUG revenue

16 November 2009

Financial results of the Issuer for 3rd quarter 2009 have just been announced. The Capital Group LUG S.A. has hold its previous market share in domestic market, simultaneously improving its foreign activity dynamically and reached the positive sales turnover dynamics of 4,3% for the period Jan-Sept, 2009. Nevertheless, the dumping pressure from competitors, necessity to reduce sales margins as well as significant influence of high EUR/PLN rate caused the overall net income/lost downturn to the level of (-) 1,01 mln PLN.

The Capital Group LUG S.A. has just published two quarterly reports including firstly unit results of the dominant company - LUG S.A., and secondly consolidated results of the entire capital group. The Issuer worked out the consolidated turnover of 43,6 mln PLN for the period 01.01–30.09.2009, to be compared with 41,8 mln PLN in the same period of previous year.

The positive sales result and maintaining the significant market share by LUG have been discounted by increasing competitive pressure leading to accelerated price competition and in result caused lower sales margins. Furthermore, the 3rd quarter 2009 was for LUG the period of EUR/PLN high currency rate affection, since stock turnover and slight periodical positive trade movement made the necessity of increased components purchase, which is expressed in EUR currency. In result, consolidated net result for three quarters was -1,01 mln PLN. EBITDA index at the level of 2,43%.

See the complete set of the LUG reports:
Stand-alone report of LUG S.A. for 3rd quarter 2009
Consolidated report of Capital Group LUG S.A. for 3rd quarter 2009