DGAP-News: KINGHERO AG: Ongoing growth in the first half year 2012
(firmenpresse) - DGAP-News: KINGHERO AG / Key word(s): Quarter Results
KINGHERO AG: Ongoing growth in the first half year 2012
27.08.2012 / 08:59
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Results 6-months 2012
KINGHERO AG: Ongoing growth in the first half year 2012
* Revenues increased by 35.3% to EUR 56.7 million
* Gross profit grew by 33.8% to EUR 22.0 million
* EBIT margin of 21.5%
* Well positioned for future investments due to equity ratio of 88.1%
Munich, 27 August 2012. KINGHERO AG, the German holding company of a
fast-growing Chinese fashion company, shows a constantly positive business
development in the first half year 2012. Revenues of the company increased
by 35.3% to EUR 56.7 million in the first six months 2012 (H1 2011: EUR
41.9 million). Also gross profit grew by 33.8% to EUR 22.0 million while
the gross profit margin remained almost stable at 38.8% (H1 2011: 39.6%).
With an equity ratio of 88.1% KINGHERO is well prepared for future
expansions.
Within the first six months 2012 KINGHERO continued its growth story. The
company realized revenues of EUR 56.7 million (H1 2011: EUR 41.9 million)
and hence exceeded revenues of the first half year 2011 by 35.3%. One of
the success factors was the increased number of distributors from 38 as at
30 June 2011 to 48 as at 30 June 2012. These distributors run a total of
370 stores. At the same time the number of KINGHERO flagship stores
increased to 65 by the end of the reporting period (30 June 2011: 28
flagship stores).
Besides the successful expansion of the distribution network, also the
attractive product pricing, contemporary design as well as the variety and
product mix of KINGHERO's portfolio contributed to the positive
development. It resulted in a further increase of the average selling price
per unit by 17% compared to H1 2011.
Along with the revenue growth the gross profit increased significantly by
33.8% to EUR 22.0 million in H1 2012 (H1 2011: EUR 16.4 million) with an
almost stable gross profit margin of 38.8% (H1 2011: 39.6%). In contrast,
EBIT decreased slightly from EUR 12.6 million in the first half year 2011
to EUR 12.2 million in the same period 2012. This was mainly caused by
higher selling and distribution expenses in line with the communicated
strategy, higher maintenance costs for the increased number of KINGHERO
flagship stores and increased administrative costs. As a result EBIT margin
fell to 21.5% in H1 2012.
KINGHERO's equity ratio of 88.1% shows, that the company is still very well
capitalised and has enough financial resources for future investments and
further expansion.
Optimistic outlook
As planned in its growth strategy, KINGHERO seeks to develop its existing
merchandise categories - especially in accessories - and increase sales,
both with distributors as well as with its own stores. Currently the
company focuses on enhancing the productivity of existing selling points
and is therefore partly restructuring its distribution network. For further
strengthening its brand building, the company will also implement a
consistent brand image for both, distributor and own shops in the second
half of 2012.
The overall sales and margin development in the first half of the year 2012
is in line with the company's expectations. Based on the result of the
first six months 2012, KINGHERO anticipates overall sales of approximately
EUR 125 million for the whole year 2012 and sustainable margins on previous
year's level. Given that there is no material negative change of company
operation in the future, the management board of KINGHERO considers to
propose the payment of a dividend about 10 to 15% of the 2012 net profit.
For more information on KINGHERO's business and financial development in
the first six months of 2012 please see the interim statement published on
the website www.kinghero.de.
About KINGHERO AG
KINGHERO AG is the German Holding Company of the KINGHERO Group of
companies, mainly active in the Peoples Republic of China (PRC). The Group
is a strongly growing apparel manufacturer and designer, featuring a
leading Chinese fashion brand for the strongly growing urban middle class
in China. The key to the Company's success is a high fashion degree with a
European 'touch and feel' as well as an upscale quality. The high speed of
the design and marketing of new collections ensures a fit to the changing
demands of the growing urban middle class in China. Being in this business
for more than 25 years, the group and its more than 1,000 employees produce
attire for all seasons under the KINGHERO brand. The product portfolio
includes suits, jackets, shirts, pants and sweaters for men and women and
is divided into a business casual range and a general casual range.
For further information please contact:
Kirchhoff Consult AG
Dr. Kay Baden
Phone: +49 (0)40 60 91 86 0
baden(at)kirchhoff.de
KINGHERO AG
Gustav-Heinemann-Ring 44
81739 Munich
Phone: +49(0)89 6734 6884
Fax: +49(0)89 6734 6887
Disclaimer
This document is not an offer of securities for sale or a solicitation of
an offer to purchase securities in the United States. The shares of
KINGHERO AG (the 'Shares') have not been registered under the U.S.
Securities Act of 1933, as amended (the 'Securities Act') and may not be
offered or sold in the United States unless registered under the Securities
Act or pursuant to an exemption from such registration. There will be no
public offering of the Shares in the United States and the Shares will not
be registered under the Securities Act.
This document is only being distributed to and is only directed at (i)
persons who are outside the United Kingdom or (ii) to investment
professionals falling within Article 19(5) of the Financial Services and
Markets Act 2000 (Financial Promotion) Order 2005 (the 'Order') or (iii)
high net worth entities, and other persons to whom it may lawfully be
communicated, falling within Article 49(2)(a) to (d) of the Order (all such
persons together being referred to as 'relevant persons'). The Shares are
only available to, and any invitation, offer or agreement to subscribe,
purchase or otherwise acquire such securities will be engaged in only with,
relevant persons. Any person who is not a relevant person should not act or
rely on this document or any of its contents.
End of Corporate News
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27.08.2012 Dissemination of a Corporate News, transmitted by DGAP - a
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Language: English
Company: KINGHERO AG
Gustav-Heinemann-Ring 44
81739 München
Germany
Phone: 089 - 6734 6884
Fax: 089 - 6734 6887
E-mail: contact(at)kinghero.de
Internet: www.kinghero.de
ISIN: DE000A0XFMW8
WKN: A0XFMWListed: Freiverkehr in Berlin, Düsseldorf, Hamburg, Stuttgart;
Open Market (Entry Standard) in Frankfurt
End of News DGAP News-Service
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182896 27.08.2012
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