DGAP-News: Haikui Seafood: Strong financial position and still solid profit margins despite negative economic impacts
(firmenpresse) - DGAP-News: Haikui Seafood AG / Key word(s): Quarter Results
Haikui Seafood: Strong financial position and still solid profit
margins despite negative economic impacts
22.05.2013 / 08:41
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Results Q1 2013
Haikui Seafood: Strong financial position and still solid profit margins
despite negative economic impacts
* Revenue increased by 6.2 per cent to 42.4 million Euros
* Margins weaker mainly due to rising raw material costs
* EBIT amounted to 6.8 million Euros with an EBIT margin of 16.1 per cent
* Cautious outlook for 2013 due to challenging market environment
Frankfurt am Main, May 22, 2013 - Given the challenging market environment,
Haikui Seafood looks back with satisfaction on its results for the first
quarter of the financial year 2013. Although profit margins have been
compressed due to stronger competition from other seafood processors and
higher raw material prices, the company continued to grow.
Due to higher sales of products in the frozen seafood segment, Haikui
Seafood's revenue increased by 6.2 per cent from 39.9 million Euros in the
first quarter 2012 to 42.4 million Euros in the first quarter 2013.
Measured in the local currency RMB, revenue grew by 6.4 per cent
year-on-year. Frozen products continued to be the main revenue driver of
the company, accounting for 90.3 per cent of total revenue in the first
quarter of 2013 (Q1 2012: 84.3 per cent). Canned seafood products, the
second product segment of Haikui Seafood, accounted for 9.7 per cent of
total revenue (Q1 2012: 15.7 per cent).
Increased raw material prices affect profit margins
All in all, several unfavourable external factors had a negative impact on
the economic development of Haikui Seafood in the first three months 2013.
Besides the difficult global market environment, the intensifying level of
competition had also influenced the sale and distribution of processed
seafood. These two factors had also impeded the ability of Haikui Seafood
to fully pass on the increase in raw material costs in the form of higher
selling prices.
Gross profit amounted to 8.4 million Euros (Q1 2012: 9.5 million Euros),
while gross profit margin decreased to 19.9 per cent (Q1 2012: 23.8 per
cent). This decline was mainly due to the increase in raw material costs
and the difficulty to increase selling prices.
The lower gross margin and higher expenses incurred as a listed entity
caused Haikui Seafood's profit from operations (EBIT) to decrease by 17.9
per cent from 8.3 million Euros in Q1 2012 to 6.8 million Euros in Q1 2013.
Accordingly, EBIT margin declined from 20.9 per cent to 16.1 per cent
year-on-year. For the same reasons, net profit decreased by 20.0 per cent
to 4.9 million Euros in the first three months 2013 (Q1 2012: 6.1 million
Euros).
Nevertheless, with 48.5 million Euros in cash, the financial position of
Haikui Seafood remained very strong in the first three months 2013. Equity
increased to 157.1 million Euros as of March 31, 2013 compared to 146.7
million Euros as of December 31, 2012.
Outlook
'We're satisfied with the overall results of the first quarter 2013 in this
challenging industry environment. To deal with the market challenges, we
will continue to pursue our growth strategy, consisting of geographical and
capacity expansion,' says Chen Zhenkui, CEO of Haikui SeafoodAG.
Currently, Haikui Seafood is planning several operational measures to cope
with the challenges:
* Appoint experienced distributors and develop tailor-made products for the
consumers' tastes to capture market share
* Enter into framework supply agreements to secure raw material supply
* Produce higher value-added, higher margin secondary processed seafood
products and shorten the time-to-market for newly developed products to
combat margin compression
* Expand processing capacity by constructing a new facility in Dongshan
Island to reduce capacity constraints. Negotiations with the local Chinese
authorities for the land purchase are currently underway
While global economic conditions are showing signs of recovery, underlying
conditions are still fragile which could affect consumer confidence and
spending momentum for the coming quarters. Coupled with the increasing
competition and potential processing capacity constraints, Haikui Seafood
expects revenue growth momentum to slow down in RMB terms in the financial
year 2013 compared to 2012. Furthermore, gross margin and EBIT margin are
expected to remain under pressure, if high material costs persist. Based on
the developments during the first months of the current financial year,
Haikui Seafood aims to increase revenue in RMB terms by around 5 per cent
in 2013 and reach an EBIT margin of around 15 per cent.
The full first quarterly report 2013 of Haikui Seafood AG is available on
the website www.haikui-seafood.com.
About Haikui Seafood AG
Haikui Seafood processes fish and seafood for the Chinese and international
markets. Its products range from frozen or canned fish and seafood,
produced from a large variety of species of raw fish and seafood, including
prawn, crab, various fish species and shellfish as well as cephalopods.
Clients of Haikui Seafood are distributors in China and overseas, located
mainly in Asia, the U.S. and Europe. Haikui Seafood employs around 700
permanent employees and on average around 1,500 additional temporary
workers. The company has an annual processing capacity of more than 34,000
tonnes (output). The processing facilities are located in the South-East of
China on Dongshan Island, Zhangzhou, Fujian Province. Haikui Seafood
operates a streamlined supply chain including self-owned processing
facilities, in-house research and product development capacities as well as
warehousing and cold storage facilities while simultaneously cooperating
closely with raw goods suppliers.
For further information please visit www.haikui-seafood.com or contact
Kirchhoff Consult AG
Dr. Kay Baden
Phone: +49 (0)40 609 186 39
baden(at)kirchhoff.de
Disclaimer concerning prognoses
This communication contains forward-looking statements. Forward-looking
statements are statements that are not historical facts instead they
reflect Haikui Seafood's current views and expectations and the assumptions
underlying them about future events. Forward-looking statements are subject
to many risks and uncertainties. If any of such risks and uncertainties
materialise or if the assumptions underlying any of Haikui Seafood's
forward-looking statements are proving to be incorrect, Haikui Seafood's
actual results may be materially different from those expressed or implied
by such forward-looking statements. Haikui Seafood does not intend or
assume any obligation to update these forward-looking statements. Any
forward-looking statement speaks only as of the date on which it is made.
End of Corporate News
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Language: English
Company: Haikui Seafood AGc/oAshurst,OpernTurm,Bockenh.Landstr.2-4
60306 Frankfurt am Main
Germany
Phone: +49 40 60 91 86 - 0
Fax: +49 40 60 91 86 - 60
E-mail: haikui(at)kirchhoff.de
Internet: www.haikui-seafood.de
ISIN: DE000A1JH3F9
WKN: A1JH3F
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf
End of News DGAP News-Service
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