DGAP-News: Powerland AG shows significant increase in revenue and gross profit in the first half 2012
(firmenpresse) - DGAP-News: Powerland AG / Key word(s): Interim Report/Half Year
Results
Powerland AG shows significant increase in revenue and gross profit in
the first half 2012
23.08.2012 / 08:45
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Significant increase in revenue and gross profit of Powerland
in the first half 2012
- Revenue increased during first half 2012 by 40.5 percent to
approximately EUR 95 million compared to prior year's period
- Luxury segment drives Group gross profit to record high in H1/2012 to
around EUR 27 million, approx. 55.1 percent above last period's
comparable figure
- Six new shops opened and operated by Powerland itself at Chinese
airports and 14 new distributor stores opened
Frankfurt / Main, 8/23/2012 - 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 half year of 2012 results.
Group revenue for Powerland AG increased from EUR 33.4 million in Q2 2011
by 43.2 percent to EUR 47.8 million in Q2 2012. The increase in revenue
measured in EUR was driven by an increase in sales of products from the
Luxury segment of approximately 50.5 percent and an increase of 34.3
percent in the sales of products from the Casual segment. In the half-year
period revenue increased from EUR 67.4 million in the first half of 2011 by
40.5 percent to EUR 94,7 million in the first half of 2012. This increase
was driven by 45.9 percent higher sales in the Luxury segment and 34.3
percent higher sales in the Casual segment.
Gross profit of Powerland Group increased by EUR 5.5 million or 36.6
percent on a quarter-to-quarter base to EUR 20.5 million in the second
quarter 2012. In the first half 2012 the Group reached gross profit of EUR
40.7 million which represents an increase of 34.8 percent over the same
period of previous year. The earnings improvement resulted mainly from the
higher gross profit of the Luxury segment which increased 55.1 percent
year-on-year to EUR 27.4 million. Once more the Luxury segment accounted
for more than 50 percent of Group revenue and the segment's share in gross
profit increased to over 67 percent.
EBIT of the Powerland Group increased by 3.0 percent in the first half 2012
to EUR 16.5 million. In the first quarter 2012 EBIT had been below previous
year's level especially due to higher selling and distribution costs for
brand building in the Luxury segment. Profit before tax rose by 4.3 percent
to EUR 15.4 million in the reporting period. Net profit for the period
improved by 12.7 percent to EUR 11.5 million.
'Our investment activity in sales and distribution has been directed at
brand building campaigns by focusing on digital media in high traffic
airports, movie advertisements, TV series advertisements and joint fashion
shows with shopping malls in key cities in China. These measures were
accompanied by local media coverage', explained Shunyuan Guo, CEO of
Powerland AG, when discussing the higher selling and distribution expenses
in the first half of 2012. 'We started a creative marketing campaign by
integrating Powerland company as story background into a TV drama of 72
episodes in which the cast carry our handbags throughout the major scenes.
The drama serial was shown at the prime time in the months of June and July
and ranked as the most popular series' stated Guo.
Sales in the Luxury segment grew strongly by 50.5 percent to EUR 27.6
million year-on-year in the second quarter 2012 and 45.9 percent to EUR
52.4 million in the first half of 2012. Gross profit of the segment
advanced by EUR 9.7 million or 55.1 percent to EUR 27.4 million in the
first half of 2012. The increase was mainly driven by an expansion of
Powerland's retail network and higher sales prices. The number of Powerland
shops increased from 123 as at June 30, 2011 within one year to 155 shops.
In the first half of this year 29 low performing distributor-operated shops
were closed. The Company's target to operate a sales network of 300 stores
by the end of 2014, of which approximately 70 stores will be opened and
operated by Powerland itself, remains unchanged.
Revenue in the Casual segment increased by 34.3 percent to EUR 20.2 million
in Q2 2012 and also 34.3 percent in the first half 2012 to EUR 42.3
million, respectively. This growth was mainly driven by higher export sales
of synthetic leather products. The segment's gross profit improved by EUR
0.8 million, or 6.2 percent, to EUR 13.3 million. The increase mainly
resulted from the devaluation of the EUR against the RMB in Q2 2012 as
compared to Q2 2011.
Gross profit of Powerland increased from EUR 15.0 million in Q2 2011 by
36.6 percent to EUR 20.5 million in Q2 2012. For the first half of 2012
gross profit increased by EUR 10.5 million, or 34.8 percent, to EUR 40.7
million. This strong growth was mainly due to the significant gross profit
growth of 55.1 percent in the Luxury segment, which once more contributed
more than 50 % to the Group's revenue.
Profit before tax increased by 51.2 percent to EUR 7.6 million in Q2 2012
compared to previous year's period. In the first half profit before tax at
EUR 15.4 million was EUR 0.6 million, or 4.3 percent, higher than previous
year.
Income tax for the Group decreased in the first half 2012 to EUR 3.9
million from EUR 4.6 million in the first half 2011. Earnings per share
(EPS) were EUR 0.39 in Q2 2012, after EUR 0.20 for the comparable restated
previous year's quarter. For the half-year period earnings per share were
EUR 0.76 in 2012 and 0.68 in 2011. Equity amounted to EUR 142 million as at
30 June 2012. The Equity ratio accounted for 70.8 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 half of 2012. Based on current business trends, management is
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. 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 are already reflected in the
results of the first half 2012. Optimizing the Luxury segment product
portfolio and launching new and innovative Casual products should further
enhance results.', Guo underlined the existing outlook of the Group again.
Group figures Q2 Q2 H1 H1 Change Cha-* based on the profit of the period and average weighted shares. The
nge
Overview in EUR 2011 2012 2011 2012 absolu in %
('000) te
restat restated
ed
Revenue 33,368 47,7 67,421 94,713 27,292 40.5%
86
thereof Luxury 18,315 27,5 35,932 52,411 16,479 45.9%
segment 67
thereof Casual 15,053 20,2 31,489 42,302 10,813 34.3%
segment 19
Gross profit 15,043 20,5 30,187 40,707 10,520 34.8%
47
EBIT 6,051 7,966 16,056 16,539 483 3.0%
Net profit for the 3,002 5,783 10,163 11,452 1,289 12.7%
period
Earnings per share 0.21* 0.39 0.83* 0.76**
in EUR **
12/31/ 06/30/
2011 2012
Equity 129,358 141,795 12,437
Equity ratio 73,4% 70,8%
calculation has been computed on the basis of an average of 14,444,444
shares for Q2 2011 and 12,222,222 shares for H1 2011 after taking into
account the 5 million new shares issued during the IPO in April 2011.
** the computation of earnings per share for Q2 2012 and H1 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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