11th Aug 2008 13:00
Grupo Clarín announces its Results for
the Second Quarter and Six Months of 2008
Buenos Aires, Argentina, August 11, 2008 - Grupo Clarín S.A. ("Grupo Clarín" or the "Company" - LSE: GCLA; BCBA: GCLA), the largest media company in Argentina, announced today its results for the second quarter and the first six months of 2008. Figures in this report have been prepared in accordance with Argentine GAAP as of June 30, 2008 and are stated in Argentine Pesos, unless otherwise indicated.
Highlights (1H08 vs. 1H07):
Comments from the Vice Chairman of Grupo Clarín:
Mr. José A. Aranda, Vice Chairman of Grupo Clarín, stated, "I am pleased to report Grupo Clarín's results for the second quarter of 2008, which were lead by the strong performance of the cable TV and Internet access segment. Despite the developments affecting the economic environment in Argentina, our Company continues to grow consolidating its position within its business segments. The innovation of our products and services, as well as the strength of our brands and network, position Grupo Clarín to improve its results and generate value for our shareholders."
FINANCIAL HIGHLIGHTS
|
(In millions of Ps.) |
1H08 |
1H07 |
% Var. |
2Q08 |
2Q07 |
% Var. |
|
Net Sales |
2,604.8 |
1,964.8 |
32.6% |
1,409.1 |
1,057.5 |
33.2% |
|
Adjusted EBITDA (1) |
764.7 |
616.6 |
24.0% |
412.2 |
336.3 |
22.5% |
|
Adjusted EBITDA Margin % (2) |
29.4% |
31.4% |
-6.4% |
29.3% |
31.8% |
-8.0% |
|
Net Income |
216.8 |
103.5 |
109.5% |
136.9 |
77.5 |
76.6% |
(1) We define Adjusted EBITDA as net sales minus cost of sales (excluding depreciation and amortization) and selling and administrative expenses (excluding depreciation and amortization). We believe that Adjusted EBITDA is a meaningful measure of our performance. It is commonly used to analyze and compare media companies on the basis of operating performance, leverage and liquidity. Nonetheless, Adjusted EBITDA is not a measure of net income or cash flow from operations and should not be considered as an alternative to net income, an indication of our financial performance, an alternative to cash flow from operating activities or a measure of liquidity. Because Adjusted EBITDA is not an Argentine GAAP measure, other companies may compute Adjusted EBITDA in a different manner. Therefore, Adjusted EBITDA as reported by other companies may not be comparable to Adjusted EBITDA as we report it.
(2) We define Adjusted EBITDA Margin as Adjusted EBITDA over Net Sales.
OPERATING RESULTS
Net sales reached Ps. 2,604.8 million, an increase of 32.6% from Ps. 1,964.8 million in 1H07 due to subscriber and ARPU growth in the Cable TV & Internet segment and, to a lesser extent, to higher advertising sales in Printing and Publishing, and higher advertising and programming sales in the Broadcasting and Programming segment.
Following is a breakdown of Net Sales by business segment:
NET SALES
|
(In millions of Ps.) |
1H08 |
1H07 |
% Var. |
2Q08 |
2Q07 |
% Var. |
|
Cable TV & Internet access |
1,566.3 |
1,218.9 |
28.5% |
817.6 |
631.2 |
29.5% |
|
Printing & Publishing |
705.3 |
524.4 |
34.5% |
373.5 |
280.5 |
33.2% |
|
Broadcasting & Programming |
443.6 |
326.5 |
35.9% |
275.8 |
210.0 |
31.3% |
|
Digital Content & Others |
77.5 |
64.9 |
19.4% |
37.1 |
32.8 |
13.3% |
|
Subtotal |
2,792.7 |
2,134.8 |
30.8% |
1,504.0 |
1,154.5 |
30.3% |
|
Eliminations |
(187.9) |
(169.9) |
10.6% |
(94.9) |
(96.9) |
-2.1% |
|
Total |
2,604.8 |
1,964.8 |
32.6% |
1,409.1 |
1,057.5 |
33.2% |
Cost of sales (Excluding Depreciation and Amortization) reached Ps. 1,281.7 million, an increase of 37.1% from Ps. 935.0 million reported for 1H07 due to higher costs in our business segments, mainly in Cable TV & Internet access due to subscriber growth, but also in the Printing and Publishing and Broadcasting and Programming segments.
Selling and Administrative Expenses (Excluding Depreciation and Amortization) reached Ps. 558.4 million, an increase of 35.1% from Ps. 413.3 million in 1H07. This increase was mainly due to the higher costs in both Printing & Publishing and Cable TV & Internet access segments.
Financial results net totaled Ps. -54.0 million from Ps. -193.1 million for 1H07, due to the appreciation of the Peso and a decrease in interest generated by liabilities as a consequence of a lower level of debt.
Equity in earnings from unconsolidated affiliates in 1H08 totaled Ps. -84.9 million, compared to Ps. -32.7 million for 1H07.
Other expenses, net reached Ps. -11.4 million, compared to Ps. -10.3 million in 1H07.
Adjusted EBITDA reached Ps. 764.7 million, an increase of 24.0% from Ps. 616.6 million reported for 1H07, driven by higher sales in the Cable and Internet, Printing and Publishing and Broadcasting and Programming segments, partially offset by increasing costs.
Following is a breakdown of adjusted EBITDA by business segment:
ADJUSTED EBITDA
|
(In millions of Ps.) |
1H08 |
1H07 |
% Var. |
2Q08 |
2Q07 |
% Var. |
|
Cable TV & Internet access |
565.4 |
419.0 |
34.9% |
292.3 |
211.4 |
38.2% |
|
Printing & Publishing |
136.3 |
125.6 |
8.5% |
73.0 |
70.6 |
3.4% |
|
Broadcasting & Programming |
60.2 |
55.0 |
9.5% |
48.7 |
47.2 |
3.2% |
|
Digital Content & Others |
2.8 |
17.0 |
-83.7% |
(1.8) |
7.7 |
-123.1% |
|
Subtotal |
764.7 |
616.6 |
24.0% |
412.2 |
336.9 |
22.3% |
|
Eliminations |
- |
- |
- |
- |
-0.6 |
-100.0% |
|
Total |
764.7 |
616.6 |
24.0% |
412.2 |
336.3 |
22.5% |
Net income totaled Ps. 216.8 million, an increase of 109.5% from Ps. 103.5 million reported for 1H07, mainly due to higher net income in the Cable TV & Internet access segment, and also due to the appreciation of the Peso and to a lower level of debt.
Income tax as of June 2008, reached Ps. 191.7 million, from Ps. 85.5 million in 1H07.
Cash used in acquisitions of property, plant and equipment (CAPEX) totaled Ps. 436.8 million in the first semester, an increase of 118.3% from Ps. 200.1 million reported for 1H07. Out of the total CAPEX in 1H08, 89.4% was allocated to the Cable TV and Internet access segment, 6.9% to the Printing and Publishing segment and the remaining 3.7% to other activities. Our Capex in the Cable TV and Internet access segment contemplates network upgrades, digitalization and further development of the triple play strategy.
Debt profile (1): Debt coverage ratio for the period ended June 30, 2008, was 1.7x, while Net Debt at the end of this period totaled Ps. 2,295.8 million.
1) Debt Coverage Ratio is defined as Total Financial Debt minus Cash and Equivalents divided by Adjusted EBITDA (last 12 months). Total Financial debt is defined as financial loans and debt for acquisitions, including accrued interest.
RESULTS BY BUSINESS SEGMENT
CABLE TV AND INTERNET ACCESS
Net Sales
Net sales increased by 28.5% to Ps. 1,566.3 million for the 1H08 compared to Ps. 1,218.9 million for 1H07. The increase
in net sales was mostly attributable to the increase in subscription charges registered during the last twelve months,
and also to growth in Cable, Broadband and Digital subscribers. Total Cable TV basic subscribers reached 3,096,268 as of June 2008, compared to the 2,903,828 reported in the same date in 2007. Internet subscribers reached 842,543 in the first half of 2008, compared to the 657,153 of the first half of 2007.
Cost of Sales (Excluding Depreciation and Amortization)
Cost of sales (excluding depreciation and amortization) increased by 28.8% to Ps. 670.5 million for 1H08, compared to Ps. 520.7 million for the same period in 2007. This was mainly due to the increase in our programming costs attributable to growth in our subscriber base and pricing adjustments linked to basic monthly fee increases -contemplated in certain programming contracts-, the effect of salary increases and higher expenses for maintenance of property, plant and equipment and network expenses.
Selling and Administrative Expenses (Excluding Depreciation and Amortization)
Selling and administrative expenses (excluding depreciation and amortization) increased by 18.3% to Ps. 330.4 million for 1H08, compared to Ps. 279.2 million reported for the same period in 2007. This increase was mainly due to the increase in expenses for salaries, wages, social security charges and which was partially offset by lower management fees paid during the period.
Depreciation and Amortization
Depreciation expenses of property, plant and equipment increased by 0.1% to Ps. 167.0 million for 1H08 from Ps. 166.8 million reported for the same period in 2007.
PRINTING AND PUBLISHING
Net Sales
Net sales increased by 34.5% to Ps. 705.3 million in 1H08, compared to Ps. 524.4 million in 1H07. This was the result of higher sales in advertising and optional products, and the consolidation of the increased ownership in Papel Prensa
Cost of Sales (Excluding Depreciation and Amortization)
Cost of sales (excluding depreciation and amortization) increased by 42.6% to Ps. 377.0 million in 1H08, compared to Ps. 264.4 million in 1H07. The increase was primarily the result of higher wages and salaries and an increase in costs of raw materials.
Selling and Administrative Expenses (Excluding Depreciation and Amortization)
Selling and administrative expenses (excluding depreciation and amortization) increased by 42.9% to Ps. 192.0 million in 1H08, compared to the Ps. 134.4 million reported for 1H07. The increase was primarily the result of an increase in advertising expenses, wages and salaries and in fees for services.
Depreciation and Amortization
Depreciation and amortization expenses increased by 53.5% to Ps. 30.1 million in 1H08 compared to Ps. 19.6 million in 1H07. The increase reflects capital expenditures made during 2006 and 2007.
The results in this segment for 1H08 reflects the 100% CIMECO consolidation.
BROADCASTING AND PROGRAMMING
Net Sales
Net sales increased by 35.9% to Ps. 443.6 million (including Ps. 90.1 million in sales to other segments) in 1H08, compared to Ps. 326.5 million (including Ps. 78.2 million in sales to other segments) in 1H07. The increase was primarily the result of higher advertising and sports programming sales and the increases in the pricing of cable signals, attributable to contract formulas that link pricing to increases in the monthly fees.
Cost of Sales (Excluding Depreciation and Amortization)
Cost of sales (excluding depreciation and amortization) increased by 44.9% to Ps. 297.2 million in 1H08, compared to Ps. 205.1 million in 1H07. The was primarily the result of higher programming and production costs, the increase in salaries and higher costs associated with the renegotiation of TV rights for soccer matches.
Selling and Administrative Expenses (Excluding Depreciation and Amortization)
Selling and administrative expenses (excluding depreciation and amortization) increased by 29.7% to Ps. 86.1 million in 1H08, compared to Ps. 66.4 million in 1H07. The increase was primarily the result of higher salaries and wages, as well as of new acquisitions.
Depreciation and Amortization
Depreciation and amortization expenses increased by 21.4% to Ps. 10.3 million in 1H08 compared to Ps. 8.5 million reported for 1H07.
DIGITAL CONTENT AND OTHERS
Net sales in this segment are derived from administrative and corporate services rendered by the Company and by our subsidiary GC Gestión Compartida S.A. to third parties as well as to other subsidiaries of the Company (which are eliminated in the consolidation). Additionally, this segment includes the production of digital content. Net sales to third parties are largely derived from advertising in our web pages and portals. Cost of sales (excluding depreciation and amortization) is driven by salaries and professional fees paid to advisers.
In this period, net sales increased 19.4 percent compared to the same period in 2007, and EBITDA resulted in 2.8 million, this decrease was mainly attributable to a reduction in the management fees that Grupo Clarín received from the Cable TV and Internet access segment and also because of the increase in costs and salaries.
OPERATING STATISTICS BY BUSINESS SEGMENT
CABLE TV AND INTERNET ACCESS
|
1H08 |
1H07 |
% Var. |
2Q08 |
1Q08 |
% Var. |
|
|
Homes Passed (1) |
6,753.6 |
6,753.6 |
0.0% |
6,753.6 |
6,753.6 |
0.0% |
|
Bidirectional Homes Passed |
47% |
42.0% |
11.9% |
47% |
47% |
0.0% |
|
Cable TV |
||||||
|
Total Subscribers (1) |
3,096.3 |
2,903.9 |
6.6% |
3,096.3 |
3,043.1 |
1.7% |
|
Subscribers - Argentina |
2,926.5 |
2,746.0 |
6.6% |
2,926.5 |
2,878.6 |
1.7% |
|
Subscribers - International |
169.7 |
157.9 |
7.5% |
169.7 |
164.5 |
3.2% |
|
Uruguay |
83.1 |
80.0 |
3.9% |
83.1 |
80.5 |
3.2% |
|
Paraguay |
86.7 |
77.9 |
11.3% |
86.7 |
84.0 |
3.2% |
|
% over Homes Passed |
45.8% |
41.9% |
9.3% |
45.8% |
45.1% |
1.6% |
|
Churn Rate % |
16.6 |
12.7 |
30.4% |
16.6 |
16.5% |
0.6% |
|
Digital Video |
||||||
|
Digital ready Pay TV Subs (1) |
1,768.4 |
1,322.8 |
33.7% |
1,768.4 |
1,496.4 |
18.2% |
|
Subscribers (1) |
305.1 |
117.1 |
160.5% |
305.1 |
251.5 |
21.3% |
|
Penetration over Digital Ready TV Subs |
17.3% |
8.9% |
94.9% |
17.3% |
16.8% |
2.7% |
|
Internet Subscribers |
||||||
|
Total Internet Subscribers (1) |
842.5 |
657.2 |
28.2% |
842.5 |
770.6 |
9.3% |
|
Cablemodem(1) |
774.9 |
539.4 |
43.7% |
774.9 |
692.2 |
11.9% |
|
ADSL(1) |
45.7 |
78.1 |
-41.5% |
45.7 |
51.3 |
-10.9% |
|
Dial Up (1) |
21.9 |
39.7 |
-44.8% |
21.9 |
27.1 |
-19.2% |
|
% over Bidirectional Homes Passed |
26.5% |
23.2% |
14.6% |
26.5% |
24.3% |
9.3% |
|
Total ARPU(2) |
85.3 |
70.8 |
20.6% |
88.8 |
82.3 |
7.9% |
(1) Figures in thousands
(2) Average Net Sales/average Pay TV Subscribers
PRINTING AND PUBLISHING
|
1H08 |
1H07 |
% Var. |
2Q08 |
2Q07 |
% Var. |
|
|
Circulation (1) |
433.9 |
451.2 |
-3.8% |
428.4 |
448.0 |
-4.4% |
|
Circulation share (%) (2) |
47.8% |
49.9% |
-4.2% |
47.9% |
50.0% |
-4.2% |
|
Advertising share %(2) |
61.5% |
60.5% |
1.7% |
61.8% |
59.4% |
3.9% |
(1) Average number of copies according to IVC (including Diario Clarín and Olé)
(2) Share in Buenos Aires and greater Buenos Aires Area (AMBA) Diario Clarín. Company estimates.
BROADCASTING AND PROGRAMMING
|
1H08 |
1H07 |
% Var. |
2Q08 |
2Q07 |
% Var. |
|
|
Advertising Share % (1) |
41.9% |
45.6% |
-8.1% |
42.2% |
47.9% |
-11.9% |
|
Audience Share % (2) |
||||||
|
Prime Time |
46.3% |
39.2% |
18.1% |
48.5% |
42.0% |
15.4% |
|
Total Time |
35.5% |
32.5% |
9.4% |
35.8% |
34.6% |
3.4% |
(1) Company estimate, over ad spend in Ps. In broadcast TV for AMBA region excluding non-traditional advertising.
(2) Share of broadcast TV audience according to IBOPE for AMBA. PrimeTtime is defined as Monday through Friday from 8pm to 12am. Total Time is defined as Monday through Sunday from 12 pm to 12 am.
DIGITAL CONTENT AND OTHERS
|
June-08 |
June-07 |
% Var. |
|
|
Page Views (1) |
539,0 |
298,3 |
80.7% |
|
Unique Visitors (1) |
13,9 |
7,7 |
79.7% |
(1) In millions, source IAB
DEBT AND LIQUIDITY
|
(In millions of Ps.) |
June - 08 |
June - 07 |
% Var. |
|
Short Term and Long Term Debt |
|||
|
Current Financial Debt |
271.1 |
448.0 |
-39.5% |
|
Financial loans |
136.6 |
318.1 |
-57.1% |
|
Negotiable obligations |
105.0 |
98.4 |
6.7% |
|
Accrued interest |
18.8 |
23.1 |
-18.6% |
|
Acquisition of equipment |
2.1 |
3.7 |
-42.4% |
|
Sellers Financing Capital |
25.4 |
4.3 |
494.6% |
|
Sellers Financing accrued interest |
22.3 |
32.6 |
-31.5% |
|
Non- Current Financial Debt |
581.4 |
928.1 |
-37.4% |
|
Financial loans |
72.0 |
91.8 |
-21.5% |
|
Negotiable obligations |
1872.8 |
1964.0 |
-4.6% |
|
Accrued interest |
1.7 |
0.0 |
NA |
|
Acquisition of equipment |
0.8 |
0.0 |
NA |
|
Sellers Financing |
686.4 |
854.3 |
-19.7% |
|
Total Financial Debt (A) |
2633.7 |
2910.1 |
-9.5% |
|
Bank overdraft |
8.6 |
4.8 |
80.2% |
|
Measurement at fair Value |
(55.5) |
(94.3) |
-41.1% |
|
Total Short Term and Long Term Debt |
2586.8 |
2820.6 |
-8.3% |
|
Cash and Cash Equivalents (B) |
337.9 |
464.1 |
-27.2% |
|
Net Debt (A) - (B) |
2295.8 |
2446.0 |
-6.1% |
|
Net Debt/Adjusted Ebitda (Last 12 Months) |
1.7 |
2.8 |
-37.1% |
|
% USD Debt |
80.4 |
80.0 |
0.6% |
|
% Ar. Ps Debt |
19.6 |
20.0 |
-2.3% |
Negotiable obligations include Cablevisión USD 114.4 MM notes due October 2012; Cablevisión USD 235.1 MM notes due October 2015, Multicanal USD 105.7 MM notes due July 2013 and Multicanal USD 80.3 MM notes due July 2016, and AGEA Ps. 267.5 MM notes due 2011.
Total Financial Debt(1) and Net Debt, decreased from Ps. 2,910.1 to Ps. 2,633.7 million and from Ps. 2,446.0 to Ps. 2,295.8, respectively, since June 2007. This represents a reduction of 9.5% in the Total Debt and of 6.1% in the Net Debt.
Debt coverage ratio (1) as of June 30, 2008 was 1.7x in the case of Net Debt and of 2.0x in terms of Total Financial Debt.
1) Debt Coverage Ratio is defined as Total Financial Debt minus Cash and Equivalents divided by Adjusted EBITDA (last 12 months). Total Financial debt is defined as financial loans and debt for acquisitions, including accrued interest.
CONFERENCE CALL AND WEBCAST INFORMATION
Grupo Clarín will host a conference call and webcast to discuss its second quarter and six months results for 2008, on Monday, August 11, 2008.
Presentations by: Alejandro Urricelqui, Chief Financial Officer; Alfredo Marín, Investor Relations Officer.
Time: 12:00 pm Buenos Aires Time/4:00 pm London Time/11:00 am New York Time
To access the conference call, please dial: form within Argentina +0 800 333 0050; from within the United Kingdom +44 (800) 092 3582; from within the United States +1 (800) 311-9401; and from all other countries +1 (334) 323 7224. The pass code is: 6118
To access the simultaneous webcast presentation, please go to: http://www.grupoclarin.com.ar/ir
A replay of the conference call will be available one hour after its conclusion, and will remain available for two months. To access the replay, please dial: from the within the U.S. + 1-877-919-4059 or from anywhere outside the U.S. +1-334-323-7226. The pass code is: 49957226. The webcast presentation will be archived at http://www.grupoclarin.com.ar/ir/
ENQUIRIES
In Buenos Aires:
Alfredo Marín, M. Julia Díaz Ardaya, Alejandro Yu
Grupo Clarín
Email: [email protected]
In London:
Alex Money, Lorna Ellen
Temple Bar Advisory Ltd.
Tel: +44 20 7002 1080
E-mail: [email protected]
In New York:
Melanie Carpenter, Pete Majeski
I-advize Corporate Communications
Tel: +1 212 406 3692
E-mail: [email protected]
ABOUT THE COMPANY
Grupo Clarín is the largest media company in Argentina and the market leader in the cable television and Internet access, printing and publishing, and broadcasting and programming segments. Its cable television network is the largest in Latin America, with the largest broadband subscriber base in Argentina. Its flagship newspaper -Diario Clarín- is the highest circulation newspaper in Latin America and the second-highest circulation Spanish-language newspaper in the world. Grupo Clarín is the largest producer of media content in Argentina, including news, sports and entertainment and reaches substantially all segments of the Argentine population in terms of wealth, geography and age.
Disclaimer
Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of Grupo Clarín. You can identify forward-looking statements by terms such as "expect," "believe," "anticipate," "estimate," "intend," "will," "could," "may" or "might" the negative of such terms or other similar expressions. These statements are only predictions and actual events or results may differ materially. Grupo Clarín does not intend to or undertake any obligation to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in Grupo Clarín's projections or forward-looking statements, including, among others, general economic conditions, Grupo Clarín's competitive environment, risks associated with operating in Argentina a, rapid technological and market change, and other factors specifically related to Grupo Clarín and its operations.
|
|
June 30, 2008
|
|
December 31, 2007
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
|
|
|
|
|
|
Cash and banks
|
214,761,226
|
|
219,760,595
|
|
Short-term investments
|
123,160,539
|
|
345,699,907
|
|
Trade receivables, net
|
617,193,027
|
|
569,117,703
|
|
Other receivables, net
|
165,604,424
|
|
142,290,047
|
|
Inventories
|
223,307,452
|
|
168,195,918
|
|
Other assets
|
42,448,844
|
|
48,419,337
|
|
|
|
|
|
|
Total current assets
|
1,386,475,512
|
|
1,493,483,507
|
|
|
|
|
|
|
NON-CURRENT ASSETS
|
|
|
|
|
|
|
|
|
|
Trade receivables, net
|
11,234,831
|
|
10,839,314
|
|
Other receivables, net
|
166,663,171
|
|
203,134,042
|
|
Inventories
|
55,663,549
|
|
41,078,789
|
|
Investment in unconsolidated affiliates
|
32,788,680
|
|
31,132,115
|
|
Other investments
|
6,979,420
|
|
8,394,731
|
|
Property, plant and equipment, net
|
2,103,286,816
|
|
1,665,732,947
|
|
Intangible assets, net
|
936,459,809
|
|
983,230,664
|
|
Other assets
|
240,014
|
|
120,007
|
|
|
|
|
|
|
Subtotal
|
3,313,316,290
|
|
2,943,662,609
|
|
Goodwill
|
2,709,438,209
|
|
2,575,035,311
|
|
|
|
|
|
|
Total non-current assets
|
6,022,754,499
|
|
5,518,697,920
|
|
|
|
|
|
|
Total assets
|
7,409,230,011
|
|
7,012,181,427
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
546,312,943
|
|
516,401,732
|
|
Long-term debt
|
271,117,170
|
|
228,733,303
|
|
Salaries and Social Security payable
|
166,573,359
|
|
163,434,344
|
|
Taxes payable
|
297,440,223
|
|
242,901,986
|
|
Other liabilities
|
165,477,269
|
|
123,847,203
|
|
|
|
|
|
|
Total current liabilities
|
1,446,920,964
|
|
1,275,318,568
|
|
|
|
|
|
|
NON-CURRENT LIABILITIES
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
9,114,779
|
|
9,876,692
|
|
Long-term debt
|
1,891,776,911
|
|
1,986,879,514
|
|
Salaries and Social Security payable
|
131,554
|
|
163,998
|
|
Taxes payable
|
16,210,401
|
|
18,133,529
|
|
Other liabilities
|
983,876,641
|
|
923,416,255
|
|
Provisions
|
122,037,825
|
|
131,235,431
|
|
|
|
|
|
|
Total non-current liabilities
|
3,023,148,111
|
|
3,069,705,419
|
|
|
|
|
|
|
Total liabilities
|
4,470,069,075
|
|
4,345,023,987
|
|
|
|
|
|
|
MINORITY INTEREST
|
518,123,845
|
|
430,176,380
|
|
|
|
|
|
|
SHAREHOLDERS’ EQUITY
|
2,421,037,091
|
|
2,236,981,060
|
|
|
|
|
|
|
Total liabilities, minority interest and shareholders’ equity
|
7,409,230,011
|
|
7,012,181,427
|
|
|
June 30, 2008
|
|
June 30, 2007
|
|
|
|
|
|
|
Net sales
|
2,604,808,647
|
|
1,964,840,937
|
|
Cost of sales (excluding depreciation and amortization)
|
(1,281,710,520)
|
|
(934,971,439)
|
|
|
|
|
|
|
Subtotal
|
1,323,098,127
|
|
1,029,869,498
|
|
|
|
|
|
|
Expenses (excluding depreciation and amortization)
|
|
|
|
|
Selling expenses
|
(264,785,060)
|
|
(203,344,282)
|
|
Administrative expenses
|
(293,600,559)
|
|
(209,935,992)
|
|
|
|
|
|
|
Expenses subtotal
|
(558,385,619)
|
|
(413,280,274)
|
|
|
|
|
|
|
Depreciation of property, plant and equipment (1)
|
(147,524,691)
|
|
(138,227,229)
|
|
Amortization of intangible and other assets
|
(62,883,422)
|
|
(57,777,691)
|
|
Goodwill amortization
|
126,505
|
|
-
|
|
Depreciation of other investments
|
(74,601)
|
|
(69,993)
|
|
|
|
|
|
|
Depreciation and amortization subtotal
|
(210,356,209)
|
|
(196,074,913)
|
|
|
|
|
|
|
Financing and holding results
|
|
|
|
|
Generated by assets
|
|
|
|
|
Interest
|
8,398,988
|
|
12,158,994
|
|
Other taxes and expenses
|
(39,647,779)
|
|
(27,079,513)
|
|
Impairment of inventories and materials
|
(877,622)
|
|
-
|
|
Exchange differences
|
(6,903,612)
|
|
3,993,909
|
|
Holding gains on inventories
|
13,847,896
|
|
1,134,015
|
|
Holding gains on financial instruments
|
1,839,992
|
|
326,871
|
|
Effect of financial discounts on assets
|
77,519
|
|
214,072
|
|
Other
|
(1,676,423)
|
|
(1,443,737)
|
|
|
|
|
|
|
Generated by liabilities
|
|
|
|
|
|
|
|
|
|
Interest
|
(115,472,631)
|
|
(133,349,362)
|
|
Exchange differences
|
96,131,002
|
|
(21,118,166)
|
|
Effect of financial discounts on liabilities
|
(18,953,922)
|
|
(22,243,714)
|
|
CER restatement
|
(771,615)
|
|
(2,771,556)
|
|
Holding gains on financial instruments
|
10,437,169
|
|
4,410,490
|
|
Other
|
(468,937)
|
|
(7,372,455)
|
|
|
|
|
|
|
Equity in earnings from unconsolidated affiliates
|
4,576,583
|
|
4,622,188
|
|
Other expenses, net
|
(11,429,221)
|
|
(10,308,417)
|
|
|
|
|
|
|
Income before income tax, tax on assets and minority interest
|
493,463,686
|
|
221,687,930
|
|
|
|
|
|
|
Income tax and tax on assets
|
(191,706,116)
|
|
(85,485,099)
|
|
|
|
|
|
|
Minority interest
|
(84,931,006)
|
|
(32,692,783)
|
|
|
|
|
|
|
Income for the period
|
216,826,564
|
|
103,510,048
|
|
Cost of sales
|
(133,783,532)
|
(125,237,662)
|
|
Selling expenses
|
(7,611,979)
|
(7,986,147)
|
|
Administrative expenses
|
(6,129,180)
|
(5,003,420)
|
|
|
June 30, 2008
|
June 30, 2007
|
|
CASH PROVIDED BY OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
Income for the period
|
216,826,564
|
103,510,048
|
|
|
|
|
|
Income tax and tax on assets
|
191,706,116
|
85,485,099
|
|
Accrued interest
|
107,073,643
|
121,190,368
|
|
|
|
|
|
Adjustments to reconcile net income for the period to cash provided by operating activities:
|
|
|
|
Depreciation of property, plant and equipment
|
147,524,691
|
138,227,229
|
|
Amortization of intangible and other assets
|
62,883,422
|
57,777,691
|
|
Goodwill amortization
|
(126,505)
|
-
|
|
Depreciation of other investments
|
74,601
|
69,993
|
|
Setting up of allowances for doubtful accounts
|
14,482,135
|
11,199,132
|
|
Setting up of provision for contingencies
|
14,866,943
|
6,527,453
|
|
Exchange difference and other financial results
|
(69,779,290)
|
38,393,671
|
|
Equity in earnings from unconsolidated affiliates
|
(4,576,583)
|
(4,622,188)
|
|
Minority interest
|
84,931,006
|
32,692,783
|
|
Holding gains on financial instruments
|
(12,277,161)
|
(4,737,361)
|
|
Holding gains on inventories
|
(13,847,896)
|
(1,134,015)
|
|
Losses / (Gains) on sale of property, plant and equipment
|
245,899
|
(170,326)
|
|
Setting up of allowance for impairment in value of inventories and materials
|
877,622
|
-
|
|
Changes in assets and liabilities:
|
|
|
|
Trade receivables
|
(25,882,471)
|
(28,013,645)
|
|
Other receivables
|
17,888,299
|
23,505,731
|
|
Inventories
|
(48,741,386)
|
(21,438,486)
|
|
Other assets
|
(554,698)
|
(1,569,286)
|
|
Accounts payable
|
11,830,085
|
25,446,064
|
|
Salaries and Social Security payable
|
(1,541,796)
|
(3,657,819)
|
|
Taxes payable
|
(41,750,058)
|
(3,053,691)
|
|
Other liabilities
|
9,045,108
|
(23,682,570)
|
|
Provisions
|
(33,053,671)
|
(5,441,732)
|
|
Income tax and tax on assets payments
|
(69,692,982)
|
(64,627,614)
|
|
Cash provided by operating activities
|
558,431,637
|
481,876,529
|
|
|
|
|
|
CASH USED IN INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
Acquisition of property, plant and equipment
|
(436,712,876)
|
(200,085,461)
|
|
Acquisition of intangible assets
|
(3,894,605)
|
(1,234,445)
|
|
Payment for the acquisition of subsidiaries, net of cash acquired
|
(174,790,676)
|
-
|
|
Collection for proceeds from sale of property, plant and equipment
|
4,929,453
|
635,394
|
|
Capital contributions in subsidiaries
|
(50,000)
|
-
|
|
Collection of interest
|
1,895,128
|
5,543,789
|
|
Collection of dividends
|
2,984,232
|
-
|
|
Cash used in investing activities
|
(605,639,344)
|
(195,140,723)
|
|
|
|
|
|
|
June 30, 2008
|
June 30, 2007
|
|
|
|
|
|
CASH USED IN FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
Loans obtained
|
68,124,995
|
1,650,000
|
|
Payment of loans
|
(65,338,436)
|
(70,827,762)
|
|
Payment of interest
|
(95,347,383)
|
(105,626,295)
|
|
Net reimbursement of expenses related to the initial public offering
|
1,484,015
|
-
|
|
Net collections for financial instruments
|
2,601,781
|
5,481,971
|
|
Payment of sellers financing
|
(2,867,899)
|
(5,695,973)
|
|
Reserve account
|
(29,747,710)
|
(14,379,385)
|
|
Payment of dividends and restatements
|
(48,000,000)
|
(18,000,000)
|
|
Payments to minority shareholders
|
(11,999,439)
|
(3,301,578)
|
|
|
|
|
|
Cash used in financing activities
|
(181,090,076)
|
(210,699,022)
|
|
|
|
|
|
FINANCING AND HOLDING RESULTS GENERATED BY CASH AND CASH EQUIVALENTS
|
759,046
|
6,792,116
|
|
|
|
|
|
Net (Decrease) Increase in cash flow
|
(227,538,737)
|
82,828,900
|
|
Cash and cash equivalents at the beginning of the year
|
565,460,502
|
381,242,555
|
|
|
|
|
|
Cash and cash equivalents at period end
|
337,921,765
|
464,071,455
|
Related Shares:
GCLA.L