BUSINESS

Turnover of 1.5-1.7 bln for Mytilineos

TAGS: Business

The absorption of the Mytilineos Group’s subsidiaries – METKA, Aluminium of Greece, Protergia and Protergia Thermo – by Mytilineos Holdings is expected to be completed by end-August 2017, the group has announced, in a move that will create a new industrial and economic force in Greece.

Evangelos Mytilineos told financial analysts in a teleconference that in 2017, the turnover of the new entity is expected to be 1.5-1.7 billion euros, earnings before interest, tax depreciation and amortization are seen at 300-330 million, while profits of 200 million are forecast.

“The new, flexible structure will benefit from a significant reduction of financial costs, economies of scale, procurement optimization, homogenization and improved management of human capital and the sharing of expertise, knowledge and best practices across the various divisions of the new entity, resulting in estimated annual pre-tax run-rate operational synergies of 20.6 million euros to be fully realized one year post completion,” the group estimates.

The new entity is expected to offer greater financial flexibility, allowing for the diversification of cash flow and strengthening of its balance sheet, enabling the optimal allocation of capital toward investments offering the highest returns, enhanced by the robust financial strength of the new corporation.

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