DGAP-News: Powerland AG: Significant increase in revenue and gross profit in first quarter 2012
(firmenpresse) - DGAP-News: Powerland AG / Key word(s): Quarter Results/Development of
Sales
Powerland AG: Significant increase in revenue and gross profit in
first quarter 2012
24.05.2012 / 09:09
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Significant increase in revenue and gross profit of Powerland
in first quarter 2012
- Revenue increased during first quarter 2012 by 37.8 percent to approx.
EUR 47 Mio. compared to prior period
- Luxury segment drives Group gross profit to record high in Q1/2012 to
around EUR 20 Mio., approx. one third above last period comparable
figure
- 15 low performance / lower prospect distributor stores closed as part
of continued store assessment activities
Frankfurt / Main, 5/24/2012 - Powerland AG (ISIN DE000PLD5558 / Prime
Standard), the leading Chinese manufacturer of exclusive luxury handbags
and leather goods, listed on the Frankfurt Stock Exchange since April 2011,
presented today its first quarter results 2012.
Group revenue for Powerland AG increased from EUR 34.1 million in Q1 2011
by 37.8 percent to EUR 46.9 million in Q1 2012. Revenue growth was mainly
driven by the expansion of Powerland's retail network and an increase in
selling prices in the Luxury segment.
Gross profit increased by 33.1 percent over the same period to EUR 20.2
million, mainly due to higher unit selling prices and an improved product
mix in the Luxury segment.
EBIT for the Powerland Group decreased by 14.3 percent in the first quarter
2012 to EUR 8.6 million. Earnings before taxes of EUR 7.7 million are
slightly lower in first quarter 2012 compared to Q1 2011. This reduction
mainly was mainly driven by higher selling and distribution costs for brand
building in the Luxury segment, as well as the higher administrative
expenses.
'Based on overall positive economic development, our growth strategy, the
enhancement of brand awareness as well as our product quality we are
confident that Powerland will strengthen its strong market position in
China for luxury handbags in 2012 and beyond', explained Shunyuan Guo, CEO
of Powerland AG when discussing the excellent development of the operating
business during Q1 2012. 'Intensive brand building and continuation of a
new marketing strategy through digital media at more than 30 key airports
in China were primary drivers of revenue growth ', underlined Guo. The
number of Powerland stores increased from 112 as at 31 March 2011 to 149 as
at 31 March 2012. 'In line with our quality growth strategy, we decided to
review our store network in detail and close down 15 distributor-operated
stores in Q1 2012, which are strategically not well located and would not
have had the potential to increase their sales substantially. Our target to
have a total of 300 stores by the end of 2014 remains unchanged', stated
Guo.
Sales in the Luxury segment grew strongly by 41.0 percent year-on-year
during the first quarter 2012. The Luxury segment is the Company's core
focus for further growth and is expected to account for approximately 70%
of the Group's revenues in two to three years. Expansion of the sales
network to a total of 300 stores by the end of 2014, of which approximately
70 stores will be opened and operated by Powerland itself, will support
this target. These self-operated stores are mainly flagship stores.
Expansion of own production facilities in the current factory premises are
also planned.
Revenue in the Casual segment increased by 34.4 percent to EUR 22.1
million. EBIT for this segment amounted to EUR 5.1 million. This increase
was mainly due to the higher sales of synthetic leather products to
customers domiciled outside of China.
Gross profit of Powerland increased from EUR 15.1 million in Q1 2011 by
33.1 percent to EUR 20.2 million in Q1 2012. This strong growth was mainly
due to the significant gross profit growth of 52.6% in the Luxury segment,
which contributed more than 50 % of the Group's revenues. The increase in
Q1 2012 was mainly due to higher unit selling prices, which out-paced cost
increases for raw materials, labour and administration expenses and also to
an improved product mix.
Profit before tax decreased by 20.2 percent to EUR 7.7 million in Q1 2012.
This was mainly due to increases in S&D costs, administrative expenses and
net financing costs.
Income tax for the Group decreased to EUR 2.0 million from EUR 2.5 million
in Q1 2011. Earnings per share (eps) were eur 0.38 in Q1 2012. Equity
amounted to EUR 132 million as at 31 March 2012. The Equity ratio accounted
for 69.8 percent at the same day compared to 73.4 percent as at 31 December
2011.
Overall sales development was in-line with management expectations for the
first quarter of 2012. Based on current business trends, , management are
confident of achieving the targeted organic sales growth of at least 20%
(in RMB terms) compared to 2011.
'We believe, that China's macroeconomic situation will remain healthy in
2012, which should sustain market demand for our products. Powerland's
results should improve due to our 'cost plus' pricing strategy and a series
of existing initiatives, such as, more efficient usage of working capital,
improved cash flow management, better cost control and supply chain
supervision. Optimizing the Luxury segment product portfolio and launching
new and innovative Casual products should further enhance results. The aim
of Powerland is for its shareholders to participate proportionately in the
Company's future success', Guo underlined when discussing the outlook of
the Group.
Group figures Q1 Q1 Change Change* the computation of earnings per share for Q1 2011 was based on net profit
Overview in EUR ('000) 2011 2012 absolute in %
Revenue 34,053 46,927 12,874 37.8
thereof Luxury segment 17,617 24,844 7,227 41.0
thereof Casual segment 16,436 22,083 5,647 34.4
Gross profit 15,144 20,160 5,016 33.1
EBIT 10,005 8,573 -1,432 -14.3
Earnings before taxes (EBT) 9,669 7,718 -1,951 16.5
Net profit for the period 7,161 5,669 -1,492 -20.8
Earnings per share in EUR 0.72* 0.38** -0.34 -0.47
for the period
and the 10 million shares issued during the reorganisation exercise as if
they were issued
on 1 January 2011
** the computation of earnings per share for Q1 2012 is based on net
profit of the period
and the 15 million shares
For further informationen please contact directly:
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(at)powerland.ag
65760 Eschborn Home: http://www.powerland.ag
Germany
Public Relations Tel: +49 (0)6196 - 776 41 10
Karl-Friedrich Brenner Fax: +49 (0)6196 - 776 41 22
Hauptstrasse 129 E-Mail: pr(at)powerland.ag
65760 Eschborn Home: http://www.powerland.ag
Germany
End of Corporate News
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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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