Giochi Preziosi Hellas, the Greek subsidiary of Italian toy maker Giochi Preziosi, reported narrower losses in 2024 despite a decline in revenue, as uncertainty surrounding the financial restructuring of its parent company weighs on the business.
The wholesaler of toys posted revenue of €10.84 million for the year, down about 3% from €11.16 million in 2023, according to financial statements filed this week. Gross profit fell to €4.18 million from €4.61 million a year earlier, reflecting weaker sales and continued pressure across the toy market.
While the company remained loss-making, its financial performance improved. Pre-tax losses narrowed to €217,700 from €406,500 in the previous year, while net losses after tax fell to €227,800 from €379,600.
ΔΙΑΒΑΣΤΕ ΕΠΙΣΗΣ
At the end of 2024, the company reported shareholders’ equity of €3.56 million, compared with €3.79 million a year earlier. Cash and cash equivalents stood at €2.93 million, while total assets declined to €13.9 million from €16 million.
Going Concern Warning Amid Group Restructuring
More significant than the annual results, however, was a warning included in the auditor’s report. The independent auditor highlighted a material uncertainty regarding the company’s ability to continue as a going concern, citing developments at the group’s Italian parent.
According to the report, Giochi Preziosi’s parent company is in the midst of a debt refinancing process that has yet to be completed. Because a substantial share of the Greek subsidiary’s imports is sourced from the parent company, any disruption to the group’s financing arrangements could have implications for the Greek operation. The auditor said those circumstances could raise significant doubt about the company’s ability to continue operating without interruption.
The warning comes as Giochi Preziosi enters a pivotal phase in its corporate restructuring. According to reports in Italy, Chinese group Superhisen is preparing to take control of the company through a newly established vehicle, Newco GP, into which it plans to contribute more than €80 million in capital and assets.
A key element of the proposed transaction is the integration of Spanish toy manufacturer Famosa, a move aimed at creating a stronger pan-European platform in the toy industry and expanding the group’s scale across key markets.
The restructuring effort follows a period of mounting financial strain. Under the group’s recovery plan, total debt is expected to reach €410 million by the end of 2025, while annual losses are projected to approach €97 million.
For Giochi Preziosi’s European subsidiaries—including the Greek business—the completion of the Superhisen deal is viewed as critical to restoring financial stability across the group. Until then, the Greek unit remains exposed to the outcome of negotiations taking place far beyond its domestic market.
