Profit announcement for 2008/09
In the financial year 2008/08, the Group revenue was DKK 3,601
million, which is a decrease of 4% relative to last year. After
non-recurring costs amounting to DKK 115 million, operating profit
came to DKK 162 million, which is in the high end of the range
expected by the Executive Board. This is, in the light of the
difficult market conditions, a very satisfactory result, which was
achieved on the basis of the line of initiatives launched by the
Executive Board to ensure healthy operations. Total cash flow
realised was DKK 116 million, which is an increase of DKK 200 million
relative to the financial year 2007/08.
At its meeting on 9 September 2009 the Board of Directors of IC
Companys A/S has approved the Audited Annual Report for the period 1
July 2008 - 30 June 2009.
* In the financial year 2008/09, the Group reported revenue
of DKK 3,601 million (DKK 3,737 million), which constitutes a
setback of 4%. Same-store sales in the Group's own stores declined
by 7%.
* Wholesale revenue recorded DKK 2,357 million, which
constitutes a decrease of 6%.
* Retail revenue recorded DKK 1,080 million, thus
representing a 1% setback.
* Gross profit came to DKK 2,136 million (DKK 2,259
million). The Group thus recorded a gross margin of 59.3% (60.4%).
Adjusted for non-recurring costs of DKK 35 million, gross margin
came to 60.3 % (60.8%).
* Operating costs recorded DKK 1,974 million (DKK 1,910
million), which is an increase of 3%. Adjusted for non-recurring
costs of a total of DKK 80 million, operating costs were retained
at the same level relative to last year.
* Operating profit saw a setback of 54% to DKK 162 million
(DKK 349 million), which equals an EBIT margin of 4.5% (9.3%).
Adjusted for non-recurring impacts amounting to a total of DKK 115
million, an EBIT margin of 7.7% (10.4%) is achieved.
* The total cash flow was an inflow of DKK 116 million (an
outflow of DKK 84 million).
* Order intake for the winter collection 2009 is finally
completed recording an 18% decrease in local currencies and 24% in
the reporting currency.
* As previously announced, it was decided to discontinue the
share buyback programmes and the Board of Directors proposes that
no dividend is to be paid to the shareholders for the financial
year 2008/09. Instead, excess cash flows will be allocated to a
reduction of the Group's short term debt.
* The Board of Directors has resolved to grant 233,500 stock
options to the Executive Board and other executive employees.
2009/10 full year guidance
* The market development remains uncertain, and visibility
is therefore low. In consequence, revenue for the full year 2009/10
is expected to be in the region of DKK 3,300 - 3,400 million. The
Executive Board launched a number of initiatives to counter the
decreasing activity, including an adjustment of the fixed costs. As
a result, operating profit for the full year 2009/10 is expected to
be in the region of DKK 150 - 200 million.
* Investments in the region of DKK 100 - 120 million are
expected to be carried through, 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
Tel.: + 45 3266
7721
Tel.: +45 3266 7017
