Sato: Increase sales and return on profits in the nine months

Sato recorded a 12% increase in sales and a return to profits, compared to last year’s losses in the corresponding period, in the first nine months of 2021.

According to the corporate announcement, the total sales of the Group amounted to € 13,632 thousand in the first nine months of 2021. Sales in the corresponding nine months of 2020 were 12,170 thousand, recording an increase of € 1,462 thousand or 12.01%.

The Group’s Gross Profit in the first nine months of 2021 amounted to € 5,802 thousand compared to € 4,818 thousand in the corresponding nine months of 2020, with the Gross Margin being at 42.56% compared to 39.59% in the corresponding nine months of 2020.

Operating Expenses – Financial Expenses in thousand € are as follows:

The Group for the first nine months of 2021 presented operating profits of € 1,208 thousand instead of profits of € 790 thousand of the corresponding period 2020.

The net result of the Group after taxes and minority interests for the first nine months of 2021 is profits of € 331 thousand (€ 0.0051 per share), instead of losses of € (765) thousand of the previous period € (0.0117 ) per share

Earnings (losses) before taxes, financial investment results, and total depreciation (EBITA) for the first nine months of 2021 are profits of € 1,962 thousand, instead of profits of € 1,392 thousand of the previous period

On 19.9.2019, the Management of the Company announced that a consolidation agreement was reached, the ratification of which, according to articles 106 b and d of Law 3588/2007, as in force, and was submitted to the Athens Multi-Member Court of First Instance for ratification. The trial for the examination of this application was set at 20^the November 2019.

On 20.11.2019 this request was tried by the Athens Multi-Member Court of First Instance. The Athens Multi-Member Court of First Instance did not rule on the Company’s request, which is expected to be issued soon.

The following is a summary of the statement of comprehensive income for the first nine months of 2021 and the statement of financial position:

Consequences of the prolonged pandemic (Covid-19) and the energy crisis in the Group and the Company

The prolonged duration of the pandemic (Covid-19), or the imposition of further restrictive measures for its spread, may have substantial negative effects on the operation of key sectors of the Greek economy, including the office and home furniture sector to an extent and to the extent that at present it is not possible to predict or quantify. In general, any estimates regarding the impact of the Covid-19 pandemic on the Greek economy and the domestic furniture market for the next period are subject to a high degree of uncertainty, as the phenomenon is ongoing.

In particular, regarding the impact of the Covid-19 pandemic on the Group, it is stated that:

Revenues from the sale of office and home furniture have so far not been adversely affected by recent developments with the coronavirus pandemic and the measures announced by the Greek government. In any case, the environment remains highly fluid as the data on the intensity and duration of the pandemic are constantly changing, making any quantitative estimates regarding the future impact on the Group’s revenues particularly difficult.

In the event that a further deterioration of the economic climate in Greece takes place or that GDP shrinks for 2021, contrary to forecasts, due to a new wave of the pandemic, but also uncertainty as to the duration and extent of the pandemic (despite the evolution of the national vaccination program), the levels of unemployment, consumer spending and demand are expected to be substantially negatively affected, consequently affecting the sector in which the Group operates.

The recent energy crisis, the depth and breadth of which cannot be estimated at present, contributes to a climate of uncertainty regarding the impact of inflationary pressures that have already emerged on consumption, investment and, consequently, the economic development. Any estimates regarding its impact on the domestic economy, the purchase of furniture and consequently on the financial results of the Group are subject to a high degree of uncertainty. With the data available so far, no significant effects of the energy crisis on the Group are expected until the end of the year, however, the Company carefully monitors and continuously evaluates the data that is formed.