Filenews 16 June 2023 - by George Lambiri
The British group Currys announced a while ago in London that it is proceeding with the sale of the Kotsovolos chain.
Typically, as noted, the British group is starting the process of investigating the sale of the chain.
"Strategic review of activity in Greece"
More specifically, Currys announced that it is starting a strategic review of its business in Greece through Kotsovolos, which could lead to the sale of its operations. Kotsovolos, which also has a growing presence in Cyprus, is a strong and profitable business, with high brand awareness, a unified e-commerce platform and a diverse mix of products and services.
As Currys points out, "the Board of Directors regularly reviews the Group's structure through the lens of shareholder value and believes that the strength of the Kotsovolos brand, its long-term track record of profitable deliveries and market leadership are not currently reflected in the Group's valuation. Given the strong economic prospects for Greece and future growth opportunities for the business, the Board believes that now is the right time to explore all options for Kotsovolos."
Baldock: Time to assess activity in Greece
Alex Baldock, Group CEO, said: "Kotsovolos is an exceptional business with a bright future and now is the right time to evaluate the best way to promote Kotsovolos to maximise value for our shareholders."
Kotsovolos overperforms for Currys
It is noted that Kotsovolos is a company that outperforms the Currys Group, at least as its results show. In particular, Kotsovolos in the last two months of fiscal year 2022 ran with a growth rate of 12%, more than double the previous six months.
According to data published by the Currys Group for the 10-week period from October 29 to January 7, which includes Black Friday and the festive market, the Greek company recorded a 12% increase in sales.
The data were the continuation of the results of the first half (May – October 2022), where Kotsovolos' turnover closed strengthened by 5%, while in own stores the increase ranged to 4%.
The sales of the Greek company amounted to €339 million compared with £321 million (€280 million) in the corresponding period of 2021 and online sales fell to 7% of turnover from 8% respectively.
In the previous financial year, i.e. the one that ended on April 30, 2022, Kotsovolos' turnover, including the activity in Cyprus that closed approximately 10 months, amounted to €654 million, compared to €578 million during the financial year 2020/2021, recording an increase of 13,1%. In a comparable number of stores, however, turnover growth was 4%.
Earnings before interest and tax amounted to €25.2 million, increased by 20.6% compared to the previous year, while earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 18% to €51.7 million.
