October 10, 2016 / 2:32 PM / a year ago

Greece's Jumbo profit up 16 pct, seen flat next year

ATHENS, Oct 10 (Reuters) - Jumbo, Greece’s biggest toy retailer, posted on Monday a 16 percent rise in net profit for its fiscal year ended June, thanks to strong performances in Bulgaria and Romania.

Net profit for the twelve months came in at 121.3 million euros ($135.9 million), up from 104.8 million euros in the same period a year earlier.

Retail sales in Greece have dropped by almost 30 percent since 2010, hurt by heavy taxes and cutbacks the country imposed in the course of three international bailouts. Capital controls since last summer have also hit consumer spending.

But Jumbo, which operates 51 stores in Greece and another 20 in Cyprus, Bulgaria and Romania, has fared well thanks to its low-cost products and foreign expansion.

It said sales for the three months ended September rose 12 percent to 170.2 million euros, as a double-digit percentage growth in Romania and Bulgaria continued.

For the twelve months ending June 2017, it estimated sales growth of 4-7 percent with earnings likely to be flat due to a sales tax hike and deflation in Greece weighing on its profit margin.

Jumbo plans to open a total of three new stores in Bulgaria and Romania by December next year.

$1 = 0.8928 euros Reporting by Angeliki Koutantou; Editing by Mark Potter

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