The turnover of the Company was below expectations as a result of lesser consumer demand. Specifically, total revenues stood atEuro 504.142 million, representing a decrease of 8.7% compared to those recorded in the same period the previous year. This decline had a higher incidence line electronics office (EOS) that were reduced in volume sales, although this decrease was partially offset by the growth in sales of traditional business (TOS), which increased by 4%, and increased revenues from service activities that raised their sales volume by 20%.
The gross operating margin in the first half of 2014 recorded a strong performance, reaching 19.4% of sales volume. This improvement is due to the increase in the margin on the EOS and improving the business mix of the company products. The average Return on Capital Employed (ROACE) also had a very positive development, reaching 17.7%.
In the first half of the year, ADVEO achieved a significant reduction in the overhead of the Company, particularly in personnel costs, a decrease of 8.4%, and operating expenses, a decrease of 1 4%, representing, in aggregate, a total decrease of almostEuro 4 million.
In addition, financial costs of the group experienced a significant drop. Specifically 18.7%, due to improved working capital managementand lower cost of debt over the previous year. The Group's net debt was also reduced byEuro 2.2 million toEuro 113.4 million.
ADVEO is the European leader in office supplies and services. ADVEO is the result of the strategic transformation started by Grupo Unipapel with the purchase of Adimpo and the acquisition of the Spicers continental Europe businesses.
