Greek toy retailer Jumbo says full-year profit drops 24 pct

ATHENS, Sept 26 Thu Sep 26, 2013 10:32am EDT

ATHENS, Sept 26 (Reuters) - Greece's largest toy retailer Jumbo reported on Thursday a 24 percent drop in net profit in the year to June, almost in line with its annual target, hurt by a haircut on its Cypriot deposits.

Jumbo, which operates 51 department stores in crisis-hit Greece and another 11 in Cyprus and Bulgaria, said net profit fell to 74 million euros ($99.96 million), compared with a 70 million euro estimate it gave earlier in the year.

The company took a 24 million euro hit on its Cypriot deposits after the Mediterranean island imposed a haircut on big depositors as part of its 10 billion euro international bailout agreed in March.

Earnings before interest, tax, depreciation and amortisation dropped 18 percent to 111 million euros, Jumbo said confirming a 1.6 percent rise in sales year-on-year, to 502 million euros. Growth in Bulgaria has outperformed Greece which is in depression for a sixth consecutive year.

Jumbo, which said it would not pay any dividend to shareholders to save money and fully repay a 145 million euro bond due May 2014, gave a more optimistic outlook for its current fiscal year. It said net profit would reach 75 million euros, the higher end of a previous 70-75 million euro forecast.

The company plans to open 4 stores, including its first two in Romania, by July 2014.

Helped by a strong cash flow and its planned expansion in Romania, Jumbo shares have rallied 53 percent since the start of the year, outperforming a 12 percent drop for the Athens stock exchange general index. ($1 = 0.7403 euros) (Reporting by Angeliki Koutantou; editing by David Evans)