The Management Board of the INTERSPORT Polska S.A. Company with the seat in Cholerzyn informs that according to preliminary estimates, in 2016 the Company gained the following financial results:

1) Profit on the sale of goods and services of PLN 205,201 thousand (in 2015: PLN 214,184 thousand);
2) EBITDA of PLN -467 thousand (in 2015: PLN 5,079 thousand), in 2016 estimated EBIDTA without any one-time events amounted to: PLN 1,411 thousand;
3) Net loss of PLN 8,573 thousand (in 2015: net loss amounted to PLN 4,419 thousand).

The lower by 4.2% revenues on sale as compared to the previous year resulted primarily from the decrease of the revenue on the sale of private labels on y/y basis by 19.6%, i.e. by PLN 6,186 thousand which accounts for approximately 70% of the total loss in sales.

The main reason behind reaching poorer financial results in 2016 were:
a). Reaching lower margin on sales on y/y basis by PLN 4,548 thousand, the decrease of margin concerned mostly private label goods by PLN 2,590 thousand;
b) Costs of one-time events in 2016 amounted to PLN 1,878 thousand of which:
- costs related to the closure of three stores (the costs of not-depreciated part of fixed assets, costs of restoring the rented premises to their original state and severance payments for employees)
- reserve for the scheduled for 2017 store closures.

In 2016 the Company incurred expenses in connection with the closure of three existing stores which suffered turnover decline and deepened loss. The closure of unprofitable stores should have a positive impact on the Company’s results as soon as in 2017.

In 2016 the Company’s costs on operations amounted to PLN 83,786 thousand and were by 1.1% (i.e. PLN 960 thousand) as compared to 2015.

The annual report including the full financial statement of the Company shall be published on 31 March 2017, after all the data included therein have been verified by the chartered auditor.