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Vision: Restructuring to reduce costs

12/11/2014 14:31
Vision International proceeded to the restructuring of the Group to reduce costs given the current turmoil in Ukraine and Russia and the trade embargo between Russia and the European Union.

According to its Interim Management Statement, “this has been done without impacting our Distributors and our Marketing strategy as these are the most dynamic factors which leave the Group in a good position going forward into the future”.

“Group revenues for the period under review compared to the corresponding period in 2013 have decreased by around 12,7%”.

Gross profit and the operating results of the Group for the period under review are lower than the corresponding period of 2013 due to modifications in the Vision Marketing Plan which has resulted in an increase of commissions to distributors.

As noted, the working capital and liquidity position of the Company remains unaffected from the decrease in sales and the gearing ratio is the same as the year ending of 2013.

As for its prospects, the announcement said that 2014 will be a year during which the Group will continue restructuring its operations with a view to reducing the costs within the Group. “Actual results are lower than budgeted due to higher than planned Sales and Distribution costs”, it added.

“The overall performance of the Company in the course of the period tends to validate Management’s prediction that in 2014 dynamic strategies will have to be adopted to maintain the planned financial results for the year”, it is stressed.

Yesterday, Vision announced the liquidation of its subsidiaries in Latvia, Lithuania and Hungary.

Vision announced six-month losses of €3.1 million against profits of €175.1 thousand in the corresponding period of 2013.