DGAP-News: Powerland AG: Powerland shows strong operating growth in the financial year 2011
(firmenpresse) - DGAP-News: Powerland AG / Key word(s): Preliminary Results/Development
of Sales
Powerland AG: Powerland shows strong operating growth in the financial
year 2011
28.02.2012 / 05:55
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Powerland shows strong operating growth
in the financial year 2011
- Group revenues in EUR rose by 30.5% year-on-year
- Accelerated growth in the fourth quarter with Group sales increased by
36.9% to EUR 37.7 million
- Above-average growth in the Luxury segment:Revenues increased by 51.7%
to EUR 80.2 million year-on-year and 68.6% to a record EUR 22.9 million
in the fourth quarter
- Gross profit margin improved to 44.2% in 2011 and to 44.7% in the
fourth quarter
- EBIT increased by 19.4% to EUR 32.2 million (after the reallocation of
non-recurring IPO costs of approximately EUR 2.3 million and
approximately EUR 2.0 million of special marketing expenditures in the
fourth quarter)
- Expansion of sales network in China to a total number of 164 shops:54
new stores opened in 2011, thereof 13 self-operated stores, including
one flagship store in Shanghai
- 18 stores opened, thereof 10 self-operated stores in the fourth quarter
Frankfurt / Main, 2012-02-28 - 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 preliminary results for the financial year
2011. Year-on-year, Powerland Group revenues increased by 30.5% from EUR
112.6 million to EUR 146.9 million. Year-on-year, gross profit increased by
45.2% to EUR 65.0 million. EBIT for the financial year 2011 increased by
19.4% from EUR 27.0 million to EUR 32.2 million.
'Powerland achieved record sales in its first year as a publicly held
company. We are encouraged by current trading and our near-term store
opening pipeline. At the end of 2011, we seized upon an opportunity to open
multiple airport stores earlier than originally planned, and supported
these openings with a significant additional investment in brand building.
The ability to react quickly to market opportunities is a hallmark of
Powerland and a key to the company's continued success', stated Shunyuan
Guo, CEO of Powerland AG. 'As a sign of confidence in Powerland's growth
prospects, management will propose a dividend to the Board of directors
that is equivalent to at least 20% of reported earnings, and which will be
paid mid-year.'
In 2011, revenues in the Luxury segment increased by 51.7% or EUR 27.3
million from EUR 52.9 million to EUR 80.2 million which corresponds to
54.6% of total Group revenue. In the fourth quarter, the Luxury segment
revenue increased by 68.6%, year-on-year, to a new record of EUR 22.9
million. The strong revenue growth is the result of the expansion of the
store network and a favourable volume and price mix which contributed
substantially to this development. 54 new stores were opened in 2011. These
included a flagship store in Shanghai and two exclusive stores in Beijing
and Shenyang which are self-operated by Powerland. For 2011, EBIT for the
Luxury segment amounted to EUR 15.0 million, an increase of 57.7 % over
previous year.
Revenues in the Casual segment increased by 11.7% to EUR 66.8 million in
2011. In the fourth quarter, revenues at EUR 14.8 million were 6.2 % higher
than in the previous years' period. EBIT of the segment amounted to EUR
17.3 million representing a slight decline year-on-year mainly as a result
of higher administration costs including the share of non-recurring IPO
costs. Management continued to make value-adding enhancements to the Casual
segment in order to offset rising overhead costs and to gain higher margins
in the future.
Gross profit of Powerland Group was up 45.2 % reaching EUR 65.0 million in
2011 after EUR 44.8 million in 2010. Gross profit margin improved to 44.2 %
as a result of the strong growth in the Luxury segment. Group EBIT of
Powerland advanced by 19.4 % to EUR 32.2 million year-on-year, but did not
show the desired operating leverage. This was attributable to non-recurring
IPO costs of EUR 2.3 million and special marketing expenditures of EUR 2.0
million in the fourth quarter to boost future growth in the Luxury segment.
The total cost of Powerland's IPO in April 2011 was approximately EUR 7.6
million, all of which was charged to equity in the second quarter. The
entire EUR 2.3 million charge has been adjusted in the fourth quarter and
reallocated back to the second quarter.
Powerland opened 10 self-operated stores in the fourth quarter, most of
which were in the prestigious and high-visibility travel retail channel.
The store opening in the airport retail channel was accompanied by the
launch of a marketing campaign in over 30 airports. Management regarded
this event as breakthrough in the negotiation of a most efficient marketing
tool to boost the brand awareness of Powerland. This led to approximately
EUR 2.0 million of incremental expenditures in fourth quarter that were not
part of the company's original 2011 operating budget.
This incremental, special expenditure conforms to management's intention to
spend approximately 30% of net IPO proceeds on marketing and other general
corporate purposes, which is discussed in the relevant section of the IPO
prospectus.
Aggressive expansion of the Powerland store network and increased
profitability remain strategic objectives. Management's target of 300
stores by 2014, of which 70 shops will be self-operated, remains unchanged.
Management will provide financial guidance for the current year during a
conference call scheduled on April 30, 2012 in conjunction with the release
of audited 2011 results.
Preliminary ChangeAbout Powerland
Group key figures Q4 Q4 2011/2010
(EUR'000) 2010 2011 2010 2011 absolute in %
Revenue 27,524 37,687 112,635 146,948 34,313 30.5
thereof Luxury segment 13,561 22,862 52,848 80,170 27,322 51.7
thereof Casual segment 13,963 14,825 59,787 66,778 6,991 11.7
Gross profit 11,086 16,858 44,770 64,994 20,224 45.2
EBIT 6,274 6,312 27,018 32,249 5,231 19.4
POWERLAND is a leading Chinese producer of fashionable luggage and bags
with a main focus on high-quality luxury women's handbags made of genuine
leather. POWERLAND operates two business segments - a luxury segment under
the POWERLAND brand and a casual segment under the Sotto brand. POWERLAND's
operating subsidiaries are located in Fujian province and Guangdong
province in China.
For additional information please refer to www.POWERLAND.ag
For additional information, please contact:
Powerland AG
Investor Relations Tel: + 49 172 - 674 97 92
Joerg Peters Fax: + 49 6196 - 777 99 66
Hauptstrasse 129 E-Mail: ir(at)powerland.ag
65760 Eschborn Internet: http://www.powerland.ag
Public Relations Tel: + 49 6196 - 776 41 10
Karl-Friedrich Brenner Fax: + 49 6196 - 776 41 22
Hauptstrasse 129 E-Mail: pr(at)powerland.ag
65760 Eschborn Internet: http://www.powerland.ag
End of Corporate News
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28.02.2012 Dissemination of a Corporate News, transmitted by DGAP - a
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Language: English
Company: Powerland AG
Lyoner Straße 14
60528 Frankfurt am Main
Germany
Phone: +49 172 - 67 49 792
Fax: +49 6196 - 777 99 66
E-mail: info(at)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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