Consolidated revenue for 2009/10 amounted to DKK 3,495 million which is a
decrease of 3% compared to last year. The Group's gross margin has been under
considerable pressure due to the foreign currency exchange development. The
optimisation process has, however, resulted in a gross margin at a historically
high level of 60.8%. Operating profit amounted to DKK 283 million which exceeds
the announced expectation. This satisfactory financial performance is
attributable to a number of initiatives implemented by Management to ensure a
profitable business operation.
The Board of Directors of IC Companys A/S has approved the Annual Report for the
period 1 July 2009 - 30 June 2010 at a Board Meeting held on 10 August 2010.
- Consolidated revenue for 2009/10 amounted to DKK 3,495 million (DKK 3,621
million) which is a decrease of 3% compared to last year. The latest announced
expectation was DKK 3,450-3,500 million. Revenue for the fourth quarter 2009/10
amounted to DKK 634 million corresponding to an increase of 13%.
- Wholesale revenue amounted to DKK 2,121 million (DKK 2,324 million) which
constitutes a setback of 9%. Revenue for the fourth quarter 2009/10 rose by 23%
to DKK 297 million.
- Retail revenue amounted to DKK 1,374 million (DKK 1,297 million) and thus
represents a 6% increase. Revenue for the fourth quarter 2009/10 rose by 5% to
DKK 337 million.
- Gross profit amounted to DKK 2,124 million (DKK 2,156 million). The Group
thus generated a gross margin of 60.8% (59.6%). Gross profit for the fourth
quarter 2009/10 rose by 16% to DKK 388 million.
- Capacity costs amounted to DKK 1,842 million (DKK 1,994 million)
corresponding to a reduction of 8% and anachieved cost efficiency of 52.7%
(55.1%). Capacity cost for the fourth quarter 2009/10 were reduced by 6% to DKK
464 million.
- Operating profit amounted to DKK 283 million (DKK 162 million). The Group
thus generated an EBIT margin of 8.1% (4.5%). The latest announced expectation
was DKK 240-270 million. The profit exceeded expectations which is attributable
to an improved gross margin and cost rate. Operating profit for the fourth
quarter 2009/10 improved by DKK 80 million to a loss of DKK 76 million.
- Realised investment level for 2009/10 amounted to DKK 123 million (DKK 136
million) compared to the latest announced expectation of DKK 100-120 million.
- Order intake for the winter collection 2010 is expected to record an increase
of 14%.
- The Board of Directors recommends a dividend payment of DKK 70 million,
corresponding to DKK 4.25 per ordinaryshare eligible for dividend, for the
financial year 2009/10.
- The Board of Directors has resolved to grant 60,000 share options to the
Executive Board.
- The Board of Directors has resolved to grant maximum 170,000 warrants to
other executives provided that a resolution granting such authority is adopted
at the Ordinary Annual General Meeting.
Outlook for 2010/11
- The growth initiatives embarked on by the Group are expected to impact
increasingly in 2010/11. At the same time a substantial pressure on the Group's
gross margin is expected as a consequence of increasing sourcing costs and a
more fierce competition in the wholesale market. On this basis, revenue is
expected to attain a level of DKK 3,800-3,900 million and the operating profit a
level of DKK 320-360 million for 2010/11.
- Investments in the region of DKK 130-150 million are expected primarily for
an expansion of the distribution and sales promoting improvements of the IT
platform.
Further information
Niels Mikkelsen Chris Bigler
Chief Executive Officer Chief Financial Officer
Phone: +45 3266 7721 Phone: +45 3266 7017
[HUG#1436973]
