DGAP-News: Powerland AG / Key word(s): Half Year Results Powerland AG: Market environment puts pressure on Powerland Group / profitability improved significantly 31.08.2015 / 09:51 --------------------------------------------------------------------- Frankfurt/Main, 31 August 2015 - Against the background of a challenging market environment, Powerland AG generated Group revenues of EUR 60.6 million in the first half year of 2015. This corresponds to a decrease of 36% compared to the last year's figure. In the three-month-period from April to June, sales amounted to EUR 30.6 million (-45%). Both the Luxury as well as the Casual segment played a major part in contributing to this development: Revenues in the Luxury segment were down 27% to EUR 47.8 million in the first half year 2015, whereas in the Casual Segment, revenues of EUR 12.8 million were generated (-56%). At EUR 8.5 million, Group EBIT decreased by 26% as against the first half year of 2014 due to the decrease in sales as well as in gross profit. EBIT margin improved from 12.1% to 14.0%. With respect to the second quarter, the margin even improved by 3.7 percentage points to 17.6%. Net profit of Powerland Group came in at EUR 5.6 million, representing a 31% decrease compared to H1 2014. Based on 15 million shares, this figure is equivalent to earnings per share of EUR 0.37 (-32%). Cash and cash equivalents went up from EUR 8.7 million at year-end 2014 to EUR 24.0 million as at 30 June 2015. The increase is mainly due to higher net borrowings while cash generated from operations was negative at EUR -2.8 million. Operation-wise, the Powerland Group launched its new product series and is constantly enhancing its online and offline brand awareness. Despite the achievements, Powerland faces substantial challenges: As the Chinese economy slows down and the competition in the Luxury segment becomes increasingly intensive, Powerland has to lower down unit selling prices and offer deeper discounts for distributors; at the same time, the price war in the casual segment remains unchanged. Consequently, Powerland maintains its conservative outlook about 2015. Group revenue is expected to decline substantially due to weakening demand from home and abroad. Although Powerland will close down more stores and implement more cost-effective marketing campaigns so as to reduce operating expenses, group EBIT will fall as well because of a sharp top-line decline. Meanwhile, Powerland will continue to adopt a stringent working capital management to ensure a healthier cash flow situation. <pre> In million EUR Q2 2014 Q2 2015 Change H1 2014 H1 2015 Change Revenue 55.2 30.6 -44.6% 94.5 60.6 -35.9% Luxury 35.4 24.5 -30.7% 65.7 47.8 -27.3% Casual 19.8 6.0 -69.5% 28.8 12.8 -55.5% Luxury % 64.2 80.3 +16.1pp 69.5 78,9 +9.4pp Casual % 35.8 19.7 -16.1pp 30.5 21,1 -9.4pp Gross profit 18.6 13.3 -28.4% 33.0 24.7 -25.1% Luxus 15.5 11.8 -23.7% 28.2 22.1 -21.6% Casual 3.1 1.5 -52.2% 4.8 2.6 -45.4% EBIT 7.7 5.4 -29.8% 11.4 8.5 -25.7% Luxus 6.6 5.5 -17.1% 10.2 8.6 -16.1% Casual 1.1 -0.1 -109.4% 1.2 -0.1 -107.1% EBIT margin 13.9% 17.6% +3.7pp 12.1% 14.0% +1.9pp Luxus 18.7% 22.3% +3.6pp 15.5% 17.9% +2.4pp Casual 5.3% -1.6% -6.9pp 4.2% -0.7% -4.9pp Net profit of the period 4.7 3.7 -20.9% 8.1 5.6 -30.8% EPS 0,31 0.25 -19,4% 0.54 0.37 -31,5% </pre> The full financial report for the first half year of 2015 is now available at http://www.powerland.ag/en/investor-relations/financial-reports For further information, please contact: Powerland AG c/o GFD - Gesellschaft für Finanzkommunikation mbH Fellnerstrasse 7-9 60322 Frankfurt am Main Germany Phone: +49 (0) 69 66 554 - 459 Fax: +49 (0) 69 66 554 - 276 E-mail: ir@powerland.ag Home: http://www.powerland.ag --------------------------------------------------------------------- 31.08.2015 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- Language: English Company: Powerland AG c/o GFD mbH, Fellnerstr. 7-9 60322 Frankfurt am Main Germany Phone: +49 69 - 66554-459 Fax: +49 69 - 66554-276 E-mail: ir@powerland.ag Internet: www.powerland.ag ISIN: DE000PLD5558 WKN: PLD555 Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart End of News DGAP News-Service --------------------------------------------------------------------- 390683 31.08.2015
DGAP-News: Powerland AG: Market environment puts pressure on Powerland Group / profitability improved significantly
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