Helio : The first quarter of 2014/2015 similar to last year's

In the 1st quarter of the current business year, the Company achieved a sales revenue at a level slightly lower than in the analogical period of the business year 2013/2014, which was PLN 12,618 thousand (the sales revenue for the period of July - September 2013 was PLN 13,255 thousand). This slight decline in sales affected the amount of the Company's profits from the sale , which was reflected both in terms of net results and EBITDA (operating profit + depreciation). In the first quarter of the financial year 2014/2015 the Issuer recorded a profit at the EBITDA level of PLN 307 thousand (compared to the profit of PLN 387 thousand for the period of July-September 2013), whereas the net result was PLN -505 thousand (compared to PLN -338 thousand for the period of July-September 2013). It should also be noted that a net loss in this period is typical of the Issuer's industry. Thus, historically speaking, the period between July and September has always been characterised by a negative net result, which is in line with the seasonal nature of profit generation in the Company.

Among macroeconomic factors which influence the results of HELIO SA, the currency and the raw materials market situation is particularly worth noting. The unstable situation in this area affects negatively the activities of HELIO SA. Although the Company has the opportunity to renegotiate the prices of sold products with its customers, adapting them to current market conditions, it is a process extended in time and implying a temporary decrease in margins on the Company's sale. Due to the persistence of the negative trends in the raw-materials market, these factors seem to be one of the key challenges of next year.

To conclude, the period essential for the industry, which determines the Issuer's annual results, is before the Company. Although the main risk factors characteristic of HELIO SA operations should still be considered, including: fluctuations in raw materials prices and in foreign exchange rates, the measures taken so far combined with the leading position in the industry should help the Company overcome the temporary inconvenience. At the same time the Company will try to take advantage of the favourable trend of changing consumer habits of Poles seeking natural products, little processed, healthier, with less salt and fat content, and a higher proportion of natural ingredients or fiber. The Issuer will seek to develop its existing offer by adapting it flexibly to current market expectations.