ANNUAL2014 REPORT WorldReginfo - 6728b95a-d93c-4584-a68c-42f566e6f118 WorldReginfo - 6728b95a-d93c-4584-a68c-42f566e6f118 ANNUAL FINANCIAL STATEMENTS FOR THE PERIOD 01.01.2014 TO 31.12.2014
“FOLLI-FOLLIE COMMERCIAL MANUFACTURING AND TECHNICAL SOCIETE ANONYME ”
REG. NO.: 3027701000 23RD KM ATHENS – LAMIA HIGHWAY 145 65, AG. STEFANOS, ATTICA
PURSUANT TO LAW 3556/2007
The attached financial statements for the period 01.01.2014-31.12.2014 were approved by the Company’s Board of Directors on March 27th of 2015 and were published by being posted in the internet, at www.ffgroup.com. They have been translated from the original statutory financial statements which have been prepared in Greek language. In the event that differences exist between this translation and the original Greek language financial statements, the Greek language financial statements will still prevail over this document. WorldReginfo - 6728b95a-d93c-4584-a68c-42f566e6f118 4 WorldReginfo - 6728b95a-d93c-4584-a68c-42f566e6f118 ANNUAL REPORT 2014
Chairman's Message 06
Company Profile 08
Statement of the Board of Directors 26
Annual Board of Directors’ Management Report 27
CONTENTS Independent certified auditors’ accountants report 50 Financial Statements 52
Information about the group 59
Information about the article 10 of law 3401/205 95
Condensed Financial Statements Of 2013 96
Report of the rights issue proceeds from share capital increase in cash 98
Report of the funds raised 100
5 WorldReginfo - 6728b95a-d93c-4584-a68c-42f566e6f118 06 chairman's message
Dear shareholders,
During 2014 our Group completed another successful year in all its main activities. We focused on our strategy to expand our own brands and diversify into new markets, whereas our key task was to bolster profitability through improved margins and a low cost base.
Our own brands Folli Follie and Links of London exceeded once again our expectations and enforced their brand names around the world. The rising demand for affordable luxury on a global level confirms our strategy and positioning in an industry which continuously gains customers worldwide.
The performance of our domestic operations demonstrated impressively how our Group turned challenges into opportunities which resulted into significant market share gains and reinforced our local operations as a leading force for branded retail in Greece and the Balkans.
Looking at our financial performance, consolidated Group revenues for the full year 2014 increased by 12,5%. The Group’s Gross profit increased by 12,3%, with the respective gross margin at 50,3%. In the effort to further control and reduce operating expenses, we managed to achieve an increase in the Group’s operating profit of 21,5%.
Net profit after minorities reached EUR 141,2 million.
The Jewellery, Watches and Accessories activity reported for the Full Year 2014 another record performance confirming the favorable positioning of our brands Folli Follie and Links of London. Revenues grew in 2014 by 10% with EBITDA increasing by 14,4% and the respective margin at 27,8%.
The Retail and Wholesale as well as the Department Store activities experienced another year of impressive recovery, translating a growing market share into rising revenues and profitability. Revenues for the activity Retail/Wholesale grew by 28,7% for the year 2014, EBITDA grew by 44% with the respective EBITDA margin at 11%.
The same trend can be observed in the Department Store activity where revenues grew by 12,7% and EBITDA by 35,4% with a margin increase from 7,1% to 8,5%.
6 WorldReginfo - 6728b95a-d93c-4584-a68c-42f566e6f118 ANNUAL REPORT 2014
Looking ahead we remain optimistic about the prospects of the Group, supported by strong strategic partners, we managed to strengt