Shares in Poland’s top wholesaler Eurocash dropped by more than 7 percent on the Warsaw Stock Exchange following a worse-than-expected Q4 financial performance by the company. “The company’s weak cash flow is what worries investors,” Marek Czachor, an analyst at Erste Group, points out. The wholesaler’s operating cash flow dropped by 64 percent to around PLN 51m in the fourth quarter of last year.
The company generated a profit of PLN 72.3m thanks to shareholders, missing market expectations by 11 percent. Consolidated sales for the group rose by 5.1 percent to PLN 4.45bn. The gross margin on sales hit 11.37 percent, up from 10.92 percent in Q3 2014. Still, the company said it intends to pay out more than half of its profit to shareholders.
