Jumbo reports 8 pct annual rise in profits

Jumbo, Greece’s biggest listed retailer, yesterday posted an 8 percent rise in net profit for the fiscal year to end-June, mainly due to robust growth in Bulgaria and Romania. Net profit for the 12 months came in at 131 million euros, up from 121 million euros in the year-ago period. It will pay a total dividend of 0.36 euros a share. Jumbo has fared well thanks to its low-cost products and foreign operations despite seven years of austerity in Greece in exchange for three international bailouts which have led to an almost 30 percent drop in retail sales. The retailer operates 51 stores in Greece and another 22 stores in Cyprus, Bulgaria and Romania. Sales for the first quarter to September rose “approximately” 12 percent, the company said, thanks to double-digit percentage growth in Bulgaria and Romania. It did not provide further details. Jumbo expects profit for the current fiscal year to June 2018 to remain unchanged, with sales rising by 6-9 percent. Under an aggressive expansion strategy, the retailer plans to operate three new stores in Romania and another one in Greece by June, it said. rate tax earlier than planned, Finance Minister Naci Agbal said yesterday, suggesting the government could retreat from deeply unpopular tax hikes to fund military spending. President Recep Tayyip Erdogan’s ruling AK Party has announced tax increases to help pay for 18 billion lira ($5 billion) in additional military spending next year. But the moves – which initially proposed increasing the tax on motor vehicles to 40 percent – have been unpopular, and sparked a backlash on social media. Corporate tax will be increased to 22 percent from 20 percent during the next three years. However, Agbal said that increase may not need to run for the full three years: “If our financial means allow, we can withdraw the three-year, 2 percentage point increase earlier than planned,” he told a news conference to announce next year’s budget.