DGAP-News: Powerland AG / Key word(s): Quarter Results/Interim Report
Powerland AG continues strong operating growth for the first nine
months 2011
17.11.2011 / 07:00
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Powerland continues its trend of strong operating growth for the first nine
months of 2011
- During the first nine months of 2011, Group revenues in EUR grew by
28.4% year-on-year
- Above-average growth in the Luxury segment:Revenue increase of 45.9% to
EUR 57.3 million
- EBIT increased by 36.3% to EUR 28.3 million; EBIT margin improved to
25.9%
- Consistent expansion of the sales network in China:23 new stores were
opened in Q3
- Successful launch of the Spring/Summer 2012 collection
Frankfurt / Main, 17.11.2011 - Powerland AG (Prime Standard / ISIN
DE000PLD5558), the leading Chinese manufacturer of exclusive luxury
handbags and leather goods, listed on the Frankfurt Stock Exchange since
April 2011, presented today its results for the first nine months of 2011.
Year-on-year, Powerland Group revenue increased by 28.4% from EUR 85.1
million to EUR 109.3 million. Year-on-year, gross profit increased by 42.9%
to EUR 48.1 million. EBIT for the first nine months of 2011 also increased
from EUR 20.7 million to EUR 28.3 million. Net income before taxes amounted
to EUR 23.9 million, representing an increase of EUR 3.8 million
year-on-year.
In particular, the third quarter of this fiscal year showed strong
progression. The increase in EBIT growth of 39.2% exceeded the increase in
revenues of 33.8%, compared to the prior year's third quarter.
'Strong revenue growth, in particular during the third quarter, is proof of
the success of our strategy. During the past nine months, we have been able
to optimise the portfolio and the price mix in both of our segments. The
demand for products in the Luxury segment has increased markedly as a
result of our successful sales strategy, the expansion of our store network
to more than 146 stores and our new marketing and advertising concept at
Chinese airports' stated Shunyuan Guo, CEO of Powerland AG, referring to
the Company's positive perfomance.
For the first nine months of the year, revenue growth in the Luxury segment
amounted to EUR 18.0 million. This represented year-on-year growth of 45.9%
to EUR 57.3 million. Accordingly, the Luxury segment constituted 52.4% of
gross revenue. Strong growth in this segment is the result of the expansion
of the store network and the successful introduction of price increases.
Twenty-three new stores were opened in Q3. These included a flagship store
in Shanghai and two exclusive stores in Beijing and Shenyang which are
operated by Powerland itself. For Q3, EBIT for the Luxury segment amounted
to EUR 4.4 million, almost double the EBIT of Q3 2010.
Year-on-year revenue in the Casual segment increased by 13.4% to EUR 52.0
million for the first nine months of the year. Likewise in this segment,
revenue growth was the most dynamic during Q3 2011, amounting to a 17%
increase year-on-year. EBIT for the segment amounted to EUR 15.0 million
for the nine-month period, representing an increase of 12% year-on-year.
Higher export sales of synthetic leather products, as well as increased
margins, drove the positive results for Powerland's 'Sotto' brand.
For the first nine months of 2011, gross profit for the Powerland Group
increased to EUR 48.1 million compared to EUR 33.7 million for the same
period in 2010. This represents growth of 42.9%. This improvement is due to
price increases for the products which exceeded cost increases in raw
materials, labour and administrative expenses as well as an improved
product portfolio.
For the first nine months of 2011, net financing costs rose to EUR 4.4
million. This increase is largely due to conversion of a substantial
majority of the IPO proceeds from EUR into RMB which led to foreign
exchange losses of EUR 2.7 million in Q3 2011 due to currency fluctuations
during required conversion process. Earnings before tax amounted to EUR
23.9 million, representing an increase of EUR 3.8 million year-on-year.
Income taxes for the Group rose to EUR 6.7 million compared to EUR 2.7
million for the same period in 2010. At EUR 1.31, earnings per share were
below those of the prior year, EUR 1.74, as a result of the dilution effect
caused by the capital increase in connection with the company's IPO. As at
30 September 2011, equity amounted to EUR 118.9 million. The equity ratio
as of end of September amounted to 72.8% compared with 37.5% on 31 December
2010.
For the first nine months of 2011, revenue and margin trends developed
according to plan. Powerland is confident that it can meet the targets
contained in the 2011 financial projections and that it can achieve
year-on-year organic growth of more than 25% (in RMB) in comparison to
2010. Despite marginally lower growth rates in the Chinese economy,
Powerland is confident that, with an EBIT margin of at least 25%, it can
exceed 2010 figures; provided that it does not experience significant
increases in raw materials costs and overhead during the remainder of the
year.
'We will continue to optimise Company net profits by means of efficient
working capital and cash flow management as well as the implementation of
improved cost controls. Further development of the product portfolio for
the Casual segment which has already begun, as well as the creation of
innovative products in the Luxury segment - including the expansion of our
sales network - give us reason to be confident that the Company's key
financial figures as well as profitability will continue to benefit from
strong increases in operating growth, the improved product portfolio and
the strength of the Powerland brand,' stated Guo describing the outlook for
the Group.
|[![CDATA[|[pre|]]]|]
Group
key figures Q3 Q3 9 months 9 months Change
Change
(Q1-Q3) (Q1-Q3)
Overview 2010 2011 2010 2011 absolute
in %
EUR ('000)
Revenue 31,274 41,840 85,111 109,261 24,150 28.4%
thereof
Luxury 13,787 21,376 39,287 57,308 18,021
45.9%
Segment
Casual 17,487 20,464 45,824 51,953 6,129
13.4%
Segment
Gross profit 12,109 17,949 33,684 48,136 14,452
42.9%
EBIT 7,101 9,882 20,744 28,273
7,529 36.3%
EBT 6,824 6,850 20,083 23,911
3,828 19.1%
Net profit 5,867 4,672 17,360 17,170 - 190
-1.1%
for the period
EPS in EUR 0.59* 0.31** 1.74* 1.31**
-0.43 -24.7%
|[![CDATA[|[/pre|]]]|]
* The computation of basic earnings per share for Q3 and Q1-Q3 2010 was
based on profit of the period and the 10 million shares issued during the
reorganisation. They were issued on 1 January 2010.
** Based on the profit of the period and average weighted shares. The
calculation has been computed on the basis of an average of 15,000,000
shares for Q3 2011 and 13,148,148 shares for Q1 - Q3 2011 after taking into
account the 5 million new shares issued during the IPO in April 2011.
For additional information, please contact:
Powerland AG
Investor Relations Tel: + 49 (0) 172 - 674 97 92
Jörg Peters Fax: + 49 (0) 6196 - 777 99 66
Hauptstrasse 129 E-Mail: ir@powerland.ag
65760 Eschborn Internet: http://www.powerland.ag
Public Relations Tel: + 49 (0) 6196 - 776 41 10
Karl-Friedrich Brenner Fax: + 49 (0) 6196 - 776 41 22
Hauptstrasse 129 E-Mail: pr@powerland.ag
65760 Eschborn Internet: http://www.powerland.ag
End of Corporate News
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Language: English
Company: Powerland AG
Lyoner StraÃe 14
60528 Frankfurt am Main
Germany
Phone: +49 172 - 67 49 792
Fax: +49 6196 - 777 99 66
E-mail: info@powerland.ag
Internet: www.powerland.ag
ISIN: DE000PLD5558
WKN: PLD555
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, München,
Stuttgart
End of News DGAP News-Service
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146692 17.11.2011
DGAP-News: Powerland AG continues strong operating growth for the first nine months 2011
| Source: EQS Group AG