IC GROUP A/S
QUARTERLY REPORT
CONSOLIDATED REVENUE FOR Q1 2015/16 AMOUNTED TO DKK 843 MILLION (DKK 828
MILLION) CORRESPONDING TO AN INCREASE OF 1.8%, OR 3.0% MEASURED IN LOCAL
CURRENCY COMPARED TO THE SAME PERIOD LAST FINANCIAL YEAR. THE GROSS MARGIN
IMPROVED BY 1.4 PERCENTAGE POINTS TO 56.6% COMPARED TO Q1 2014/15. THE
CONSOLIDATED OPERATING PROFIT FOR Q1 2015/16 ROSE BY 15.6% TO DKK 163 MILLION
(DKK 141 MILLION) DRIVEN BY THE GROUP’S PREMIUM BRANDS. OUTLOOK FOR THE
FINANCIAL YEAR 2015/16 REMAINS UNCHANGED.
* Peak Performance generated revenue of DKK 343 million for Q1 2015/16 (DKK 353
million) corresponding to a reduction of 2.8% (a reduction of 2.5% measured in
local currency). This reduction was driven by the wholesale channel whereas the
retail channel reported good revenue growth. Revenue from the markets Denmark
and Sweden rose whereas other geographical markets reported revenue reductions.
The operating profit improved by DKK 4 million to DKK 78 million.
* Tiger of Sweden increased its revenue by 3.0% (5.2% measured in local
currency) to DKK 277 million (DKK 269 million) driven by the retail channel
whereas sales to the wholesale customers remained unchanged. The German market
continued to report strong growth whereas revenue from the Nordic region
remained flat. The operating profit amounted to DKK 53 million (DKK 47
million).
* Revenue from By Malene Birger rose by 7.2% (8.6% measured in local currency)
to DKK 104 million (DKK 97 million) which was primarily attributable to a
positive development in the retail channel, however, the wholesale channel also
reported higher revenue. Geographically, the Nordic region accounted for the
majority of the reported growth. The operating profit amounted to DKK 13
million (DKK 11 million).
* Revenue from the Group’s Non-core business rose by 3.7% (5.1% measured in
local currency) driven by the positive development seen in Saint Tropez which
more than compensated the reduced revenue from Designers Remix. The revenue
increase in Saint Tropez was to a great extent driven by commercial discounts,
and the gross margin was thus reduced. Consequently, the Non-core business
generated an operating profit of DKK 10 million compared to DKK 11 million last
financial year.
* The bankruptcy proceedings of a former distributor in Switzerland had a
general negative impact on the consolidated revenue meaning that no revenue was
generated in this market during a large part of Q1 2015/16. This incident has
in particular affected Tiger of Sweden, Saint Tropez and Designers Remix. In
all three brands measures have been initiated in order to set up alternative
distribution channels in Switzerland.
* Rulings have been delivered in the case concerning indirect taxes for which
the Group had allocated a total provision of DKK 25 million in Q2 2014/15. The
outcome of this case resulted in a reversal of DKK 10 million of the original
provision of which DKK 5 million relates to the continuing operations whereas
DKK 5 million relates to the discontinued operations. The gross profit of
continuing operations was affected positively by DKK 3 million, the operating
profit was affected by DKK 4 million whereas DKK 1 million relates to financial
items.
* The gross profit rose to DKK 477 million (DKK 457 million) compared to Q1
2014/15, and the gross margin was thus improved to 56.6% (55.2%). The
previously announced price increases on the Group’s products will not have an
impact until Q3 2015/16, and the reported higher gross profit for Q1 2015/16 is
primarily attributable to improved margins on sold products as well as lower
inventory write-downs compared to Q1 2014/15.
* Capacity costs amounted to DKK 314 million and were thus lower compared to
last financial year (DKK 316 million). The cost ratio decreased by 1.0
percentage point to 37.2%. The costs were negatively affected by a provision of
approx. DKK 5 million in respect of changes to the Group management.
* Operating profit rose by 15.6% to DKK 163 million (DKK 141 million), and the
EBIT margin thus amounted to 19.3% which is an improvement of 2.2 percentage
points compared to Q1 2014/15.
OUTLOOK FOR THE FINANCIAL YEAR 2015/16 – UNCHANGED
We expect the positive performance of the Group’s core business to continue and
to drive overall revenue growth and earnings development for the Group.
Specifically, we expect revenue growth to attain a level of 4%.
We expect the consolidated operating profit to be realized with an EBIT margin
of approx. 10%.
Investments for the financial year 2015/16 are expected to be in the region of
3-4% of revenue.
Provided that the consolidated results are in line with expectations, the Board
of Directors expects to distribute an extraordinary dividend of approx. DKK 75
million during the financial year 2015/16.
Copenhagen, 12 November 2015
IC GROUP A/S
Mads Ryder
Group CEO
Alexander Martensen-Larsen
Group CFO
INFORMATION MEETING
IC Group will host an information meeting for investors, analysts and other
stakeholders on Thursday 12 November 2015 at 10.00 a.m.
The information meeting will be held in English via audio cast and telephone,
and it will be possible to raise questions online using the relevant chat
function or telephone. To participate in the information meeting online, please
use the link below which is also available on our corporate website icgroup.net
under Investors:
http://edge.media-server.com/m/p/o8c8ypen
To participate in the telephone conference, please dial in using the
below-listed telephone numbers:
+45 3271 1660 (Denmark)
+1 646 254 3388 (USA)
+44 (0)20 3427 1902 (UK and rest of world)
PLEASE DIRECT ANY QUESTIONS REGARDING THIS ANNOUNCEMENT TO:
Jens Bak-Holder
Investor Relations Manager
Phone: +45 21 28 58 32
This announcement is a translation from the Danish language. In the event of
any discrepancy
between the Danish and English versions, the Danish version shall prevail.
