DGAP-News: Challenging external environment impacts half-year results of Haikui Seafood
(firmenpresse) - DGAP-News: Haikui Seafood AG / Key word(s): Half Year Results
Challenging external environment impacts half-year results of Haikui
Seafood
21.08.2013 / 08:34
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Half-year report 2013
Challenging external environment impacts half-year results of Haikui
Seafood
* Revenues decreased by 12.7 per cent to 69.4 million Euros
* EBIT went down by 39.1 per cent to 9.7 million Euros
* EBIT margin of 14.0 per cent despite intensified competition
Frankfurt am Main, August 21, 2013 - Due to several unfavourable
circumstances which Haikui Seafood had to face in the second quarter 2013,
the half-year results of the company were weaker compared to the same
period last year. Nevertheless, Haikui Seafood remained very profitable
with solid profit margins, a strong balance sheet and a comfortable cash
position.
In the first six months of 2013, raw material prices and labour costs
continued to increase, resulting in higher production costs. However, due
to escalating competition within the seafood processing industry, selling
prices had fallen instead of rising to keep pace with higher production
costs. Furthermore, export sales of all Chinese seafood processing
companies were delayed in the second quarter due to more stringent
inspections of end product quality carried out by the Chinese authorities.
These developments had a negative impact on Haikui Seafood's financial
results.
Due to these adverse circumstances, Haikui Seafood's revenue decreased by
12.7 per cent to 69.4 million Euros (H1 2012: 79.5 million Euros). Measured
in the local currency RMB, revenue similarly declined by 12.7 per cent
year-on-year. Frozen products continued to be Haikui Seafood's main revenue
driver, accounting for 86.2 per cent of total revenue with sales of 59.8
million Euros (H1 2012: 67.4 million Euros). Canned products contributed
9.5 million Euros (H1 2012: 12.1 million Euros) or 13.8 per cent to total
revenue.
Gross profit went down from 18.7 million Euros in the first half-year 2012
to 12.8 million Euros in the first half-year 2013, corresponding to a gross
profit margin of 18.4 per cent (H1 2012: 23.5 per cent). As a result of the
lower gross margin and higher distribution and administrative expenses,
Haikui Seafood's earnings before interest and taxes (EBIT) declined by 39.1
per cent to 9.7 million Euros (H1 2012: 16.0 million Euros). For the same
reasons, net profit decreased year-on-year by 49.1 per cent to 5.9 million
Euros (H1 2012: 11.6 million Euros).
Despite the challenging external environment, Haikui Seafood continued to
operate profitably with solid margins given an EBIT margin of 14.0 per cent
and a net profit margin of 8.5 per cent.
Strong financial position
Haikui Seafood's financial position as at June 30, 2013 remained very
strong with a total equity of 158.1 million Euros (December 31, 2012: 146.7
million Euros) and an equity ratio of 97.3 per cent (December 31, 2012:
94.3 per cent). Its cash position increased further to 51.8 million Euros
(December 31, 2012: 48.9 million Euros).
Revised outlook for full-year 2013
Given the on-going competitive environment amidst a weak global economy,
the longer turnaround time taken by the Chinese authorities to inspect the
end product quality of Chinese seafood exporters and the weak results of
the first half-year 2013, Haikui Seafood has updated its forecast for the
full year 2013. The company expects revenue to decrease by around 20 per
cent in RMB terms as compared to 2012 and an EBIT margin of approximately
14 per cent.
'Notwithstanding the current market situation, we are still pursuing our
mid-term growth strategy, which comprises of geographical and production
expansion,' says Chen Zhenkui, CEO of Haikui Seafood. Strategic steps are
the expansion of processing facilities in Dongshan and the enhancement of
the distribution network by appointing new regional distributors in China.
Furthermore Haikui Seafood is working consistently to broaden the product
portfolio and to strengthen its presence in international markets,
especially Asia, Europe and USA.
The full half-year report 2013 is available on the Haikui Seafood website
under the following link:
http://www.haikui-seafood.com/en/investor-relations/publications/reports/
About Haikui Seafood AG
Haikui Seafood processes fish and seafood for the Chinese and international
markets. Its products range includes 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 1,100 additional temporary
workers in H1 2013. 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
Anja Ben Lekhal
Phone: +49 (0)40 609 186 55
anja.benlekhal(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 AG
c/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: A1JH3FListed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf
End of News DGAP News-Service
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