The forthcoming launch of the euro has led to an expectant
situation in the vending sector, particularly during the
third quarter, which along with a logical caution in purchases,
has led to a slow down in sales for the Azkoyen Group
in the period between July and September of this financial
year. Despite the sluggishness of the market, turnover
for the first nine months was 17,737 million pesetas (an
increase of 14.3% compared with the same period in 1999).
This situation, along with an increase in costs (increases
in the prices of oil and raw materials and the constant
devaluation of the euro) have had a negative effect
on the Group's net results, which up until September
were 987 million pesetas (27.4% less than in the same
period of the previous year).
The large rise in costs, according to official sources
in the Azkoyen Group, could not be fully passed on in
sale prices. And this decrease in profits also highlights
the 8-point increase in the tax burden.
The slow down in sales, according to official sources,
is due to the delay in the sale of products associated
with the forthcoming launch of the euro. They also predict
a marked change in trend in the sector in the last quarter
of this year, taking into account existing orders. And
above all, in 2001, considerable increases are expected
in sales of products, as the methods of payment machines
must be completely adapted to the new European currency
by 31 December 2001.
In terms of investments in the first nine months of
this year, the Azkoyen Group has continued with its
preparations, using 1,103 million pesetas for investments
in fixed assets and 844 million for research and development
(R&D) expenditure.
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