AS Company is in discussions with two companies for a possible acquisition, AS Company, without yet disclosing the sector in which they operate, while management maintains the target for a 10% increase in sales for the whole of 2026.
In the conference call for the first-half results, chairman and chief executive officer Efstratios Andreiadis and non-executive vice chairman Apostolos Petalas emphasized strong profitability, the ample liquidity the group has, and the way it plans to utilize it.
Profits +65% and the +10% target remains
The group's sales amounted to 15.95 million euros in the first half, up by 4.19%, however the improvement in profitability was noticeably greater.
EBITDA increased by 27.88%, to 3.17 million euros, while tnet profits rose by 65.09%, to 2.35 million euros. At the same time, the gross profit margin widened to 52.21%, from 48.32% a year earlier.
Management underlined that the course of sales is consistent with its planning, while also pointing out the particularly high comparison base. In the first half of 2025, the group's sales had increased by 32.02%, to 15.31 million euros from 11.60 million euros.
In this light, management maintains the target for a 10% increase in sales for the whole of 2026, with the last quarter, due to the Christmas period, carrying increased weight for the toy market.
In the significant improvement of the gross margin, according to what was said, a decisive role was played by the favorable movement of the dollar. A significant part of AS's supplies and investments is carried out in the American currency, a fact that benefited it significantly. Also positive was the greater contribution of products bearing the AS brand, which offer a higher gross margin.
Two candidate acquisition targets
The utilization of the strong financial position also includes the possibility of an acquisition.
Management revealed that AS is in discussions with two companies and is examining which one can better respond to what the group is seeking. It did not provide information about the sector in which they operate, noting that the discussions still need time.
The objective is not simply the addition of turnover, with AS seeking a company that will broaden its customer base, give it access to new channels, mainly digital ones, and create possibilities for synergies.
The logic, as described, is two-way, with AS wanting to acquire capabilities it does not currently have and, on its part, to offer the potential target capabilities that it does not have. Management, however, avoided creating expectations for an immediate agreement. If an acquisition ultimately proceeds, it is placed in time from 2027 onwards.
The liquidity "shield"
A large part of the discussion concerned liquidity and the philosophy with which it is managed. Management noted that in more than 30 years of presence AS consistently made sure to have sufficient capital so that it could deal with periods of crises and intense uncertainty.
As it stated, despite the major upheavals that have intervened over the past decades, the company managed to improve its performance, with strong liquidity acting as a key support.
At the end of June, cash and cash equivalents amounted to 14.17 million euros, while another 12.19 million euros were placed in financial products, while, at the same time, the group has no bank borrowing.
Management linked the maintenance of this strong position with two main goals. On the one hand, the ability for the company to continue offering shareholders the minimum return of 5% to which it has committed and, on the other hand, to have the capital required for acquisitions, if the appropriate opportunity is identified.
At the same time, the available funds do not remain idle. About 50% of the relevant placements is in dollars and, according to management, yields at least 5%, while similar returns are also achieved on placements in euros.
If ultimately no suitable acquisition is found, then a return of capital to shareholders will also be considered, a possibility that had also been raised by the company's shareholders.
Romania, Cyprus and the toy market
For Romania, management acknowledged that the country and the consumer market are going through a difficult period, however it expressed the estimate that AS can cope with the pressures and have a successful presence in the local market.
Different was the choice for Cyprus, which is now served from Greece. Management explained that AS's major customers in the Cypriot market are also active in Greece, while the increase in the tax rate reduced the benefit from maintaining a separate corporate presence compared with the cost it required.
In response to a question regarding the extent to which the decline in births affects the toy market, management replied that the market continues to grow and that AS is growing at a faster rate than it.
For baby development, it was noted that this is a category that "we are learning and it is teaching us", while the company's people appeared optimistic about the prospects of this specific activity.
The investment in Crete in two phases
At the same time, the process of developing the land in Matala, Crete, is underway. The first phase includes the construction of eight villas, which are intended for sale. AS estimates that construction work can begin during 2027.
The total investment for this phase is estimated at 3.5-4 million euros over a horizon of about two years, while for 2026 the related expenses are not expected to exceed 100,000 euros.
At a later stage, the development of the old hotel adjacent to the land is planned. The move will proceed when the required permit is secured and is estimated to require an additional investment of about 4 million euros.
Management clarified, however, that AS does not intend to turn into a real estate or hospitality company. but is proceeding with this specific investment, with capital needs that it considers manageable for its size and with the aim of creating added value for shareholders.