Pelion : Correction of the Pelion Group’s consolidated Q1 2016 report

Current Report No. 11/2016Date: May 18th 2016
Correction of the Pelion Group's consolidated Q1 2016 report

The Management Board of Pelion S.A. of Łódź (the 'Company'), entered in the Business Register of the National Court Register under No. 0000049482, publishes a correction of the condensed consolidated quarterly financial statements for the three months ended March 31st 2016, issued on May 13th 2016.
The restatements affect the consolidated statement of profit or loss, the consolidated statement of comprehensive income, the consolidated statement of financial position and the consolidated statement of changes in equity.
In the quarterly report containing the condensed consolidated quarterly financial statements as at March 31st 2016, net profit attributable to non-controlling interests was misallocated due to an accounting error.
The misallocated amount was PLN 683 thousand.
In the 'Consolidated statement of profit or loss' table on page 3, in the column pertaining to the period of three months ended March 31st 2016, the following corrections have been made:
Item:
- Net profit attributable to owners of the parent − was: PLN 16,533 thousand, should be: PLN 17,216 thousand,
- Net profit attributable to non-controlling interests − was: PLN 1,115 thousand, should be: PLN 432 thousand.
As a result of the revision in net profit attributable to owners of the parent, the following changes have also been made:
- Basic earnings per ordinary share − was: PLN 1.48, should be: PLN 1.54.
- Diluted earnings per ordinary share − was: PLN 1.45, should be: PLN 1.51.
In the 'Consolidated statement of comprehensive income' table on page 4, in the column pertaining to the period of three months ended March 31st 2016, the following corrections have been made:
Item:
- Net comprehensive income attributable to owners of the parent − was: PLN 16,589 thousand, should be: PLN 17,272 thousand,
- Net comprehensive income attributable to non-controlling interests − was: PLN 1,105 thousand, should be: PLN 422 thousand.
These revisions have also been reflected in the 'Consolidated statement of changes in equity' on page 6 of the report.
In the 'Consolidated statement of financial position' table on page 2, in the column pertaining to the period of three months ended March 31st 2016, the following corrections have been made:
Item:
- Retained earnings/ (accumulated losses) − was: PLN (109,885) thousand, should be: PLN (109,202) thousand,
- Net profit − was: PLN 16,533 thousand, should be: PLN 17,216 thousand,
- Non-controlling interests − was: PLN 13,081 thousand, should be: PLN 12,398 thousand.
Additionally, following an analysis of the allocation of administrative expenses and distribution costs in a company of the WHOLESALE segment, an adjustment was made to the relevant data for Q1 2015,
reducing administrative expenses for Q1 ended March 31st 2015 by PLN 1,775 thousand, and increasing distribution costs by the same amount. The purpose of the adjustment was to ensure uniform presentation of conference costs in both reporting periods.
In the 'Consolidated statement of profit or loss' table on page 3, in the column pertaining to the period of three months ended March 31st 2015, the following corrections have been made:
Item:
- Distribution costs − was: PLN 192,720 thousand, should be: PLN 194,495 thousand.
- Administrative expenses − was: PLN 31,519 thousand, should be: PLN 29,744 thousand.
As a result of these corrections to the condensed consolidated quarterly financial statements, the financial figures presented in section 7 of the report have also been revised.
Was:

Item	Q1 2015	Q1 2016	Change Q1 2016 / Q1 2015
Distribution costs	192,720	212,522	10.3%
Administrative expenses	31,519	28,352	-10.0%
Net profit (attributable to owners of the parent)	13,947	16,533	18.5%
Distribution costs ratio	8.9%	9.0%	0.1pp
Administrative expenses ratio	1.4%	1.2%	-0.2pp

Should be:

Item	Q1 2015	Q1 2016	Change Q1 2016 / Q1 2015
Distribution costs	194,495	212,522	9.3%
Administrative expenses	29,744	28,352	-4.7%
Net profit (attributable to owners of the parent)	13,947	17,216	23.4%
Distribution costs ratio	9.0%	9.0%	0.0 pp
Administrative expenses ratio	1.3%	1.2%	-0.1pp

and financial highlights presented in section 31 of the report.
Was:

	PLN '000		EUR '000
	Three months ended Mar 31 2016	Three months ended Mar 31 2015 (restated)	Three months ended Mar 31 2016	Three months ended Mar 31 2015 (restated)
V. Net profit attributable to owners of the parent	16,533	13,947	3,796	3,362
XII. Basic earnings per ordinary share (PLN/EUR)	1.48	1.25	0.34	0.30
XIII. Diluted earnings per ordinary share (PLN/EUR)	1.45	1.22	0.33	0.29
	Mar 31 2016	Dec 31 2015	Mar 31 2016	Dec 31 2015
XIX. Equity attributable to owners of the parent	698,102	681,246	163,551	159,861
XX. Non-controlling interests	13,081	11,976	3,065	2,810

Should be:

	PLN '000		EUR '000
	Three months ended Mar 31 2016	Three months ended Mar 31 2015 (restated)	Three months ended Mar 31 2016	Three months ended Mar 31 2015 (restated)
V. Net profit attributable to owners of the parent	17,216	13,947	3,952	3,362
XII. Basic earnings per ordinary share (PLN/EUR)	1.54	1.25	0.35	0.30
XIII. Diluted earnings per ordinary share (PLN/EUR)	1.51	1.22	0.35	0.29
	Mar 31 2016	Dec 31 2015	Mar 31 2016	Dec 31 2015
XIX. Equity attributable to owners of the parent	698,785	681,246	163,711	159,861
XX. Non-controlling interests	12,398	11,976	2,905	2,810

The above adjustments have been reflected in the corrected condensed consolidated quarterly financial statements, attached as an appendix to this current report.
The other items of the condensed consolidated quarterly financial statements as well as the condensed quarterly financial statements have remained unchanged.
Legal basis:
Par. 6.4 of the Minister of Finance's Regulation on current and periodic information to be published by issuers of securities and conditions for recognition as equivalent of information whose disclosure is required under the laws of a non-member state, dated February 19th 2009
(Dz. U. of 2014, item 133).