The Company's operating expenses rose marginally, by 0.93%, due to the 2.47% increase in sales expenses. Operating expenses as a percentage of sales grew from 5.67% in the third quarter of 2006 to 5.71% in 3Q07. However, Grupo Casa Saba continued to implement cost reduction programs and, as a result, was able to lower its administrative expenses.
Operating income grew by 2.96% to reach $207.40 million pesos. The operating margin was 3.56%, which is 9 b.p. higher than the margin that was registered during the same quarter of 2006.
OPERATING INCOME PLUS DEPRECIATION AND AMORTIZATION
Operating income plus depreciation and amortization for 3Q07 was $235.72 million, increasing 4.71% from the same period of the previous year. Depreciation for the quarter totaled $28.32 million, an increase of 19.60%.
CASH AND CASH EQUIVALENTS
Cash and cash equivalents at the end of the third quarter of 2007 reached $368.34 million. The reduction in cash was due to higher working capital expenditures.
COMPREHENSIVE COST OF FINANCING
During the third quarter of 2007, GCS's comprehensive cost of financing of $13.33 million was higher than the $3.79 million of 3Q06, as a result of lower interest income.
OTHER EXPENSES (INCOME)
During the third quarter of 2007, the Company registered an income of $72.70 million in other expenses (income). This amount reflects the recovery of taxes from past periods.
It is worth noting that expenses (income) from this line item reflect activities that are distinct from the company's everyday business operations.
During the third quarter of 2007, tax provisions rose to $82.56 million. This increase was primarily the result of a reduction in deferred income taxes, related to the recovery of taxes from past periods.
GCS's net income during the third quarter
|SOURCE Grupo Casa Saba, S.A.B. de C.V.|
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