DGAP-News: Haikui Seafood AG: Challenging business environment continues to impact results
(firmenpresse) - DGAP-News: Haikui Seafood AG / Key word(s): Preliminary
Results/Quarter Results
Haikui Seafood AG: Challenging business environment continues to
impact results
07.11.2013 / 08:28
---------------------------------------------------------------------
Preliminary figures 9 months 2013
Haikui Seafood AG: Challenging business environment continues to impact
results
* 9M 2013 revenue down 22.3 per cent to 100.3 million Euros
* EBIT margin remains solid at 14.5 per cent
* Cautious outlook for full year 2013
Frankfurt am Main, November 7, 2013 - Various adverse market circumstances
continued to impact the results of Haikui Seafood in the third quarter
2013. The cumulative effects of these factors led to weaker results
compared to the same period in 2012. However, Haikui Seafood still
possesses a strong financial position with solid profit margins.
The keener market competition, a tighter supply of raw materials, and the
longer inspection time taken by Chinese Inspection and Quarantine
Authorities (CIQ) have resulted in lower selling prices and a reduced sales
volume. Consequently, revenue of Haikui Seafood decreased by 22.3 per cent
to 100.3 million Euros in the first nine months 2013 (9M 2012: 129.0
million Euros). Measured in the local currency RMB, revenue similarly
declined by 21.5 per cent.
With a share of 82.4 per cent of the company's total revenue, frozen
products continued to be Haikui Seafood's main revenue driver with sales of
82.6 million Euros in the first nine months 2013 (9M 2012: 112.0 million
Euros). Canned products contributed 17.7 million Euros (9M 2012: 16.9
million Euros) or 17.6 per cent to total revenue.
Profit margins under pressure
Raw material and labour costs have risen due to tighter raw material
situation and stronger market demand. The challenging business environment
has, however, not only impeded Haikui Seafood from increasing its selling
prices but on the contrary necessitated a price reduction to stay
competitive. Hence, gross profit weakened by 41.2 per cent to 18.7 million
Euros (9M 2012: 31.8 million Euros). Due to the lower gross margin and
higher distribution and administrative expenses, profit from operations
(EBIT) slipped 47.3 per cent from 27.7 million Euros to 14.6 million Euros
in the reporting period. For the same reasons, net profit declined by 53.2
per cent year-on-year amounting to 9.5 million Euros (9M 2012: 20.3 million
Euros).
Although profit margins came under pressure, they still remained at
attractive levels: Gross profit margin stood at 18.7 per cent (9M 2012:
24.6 per cent) while EBIT margin reached 14.5 per cent (9M 2012: 21.5 per
cent). Also, net profit margin remained healthy at 9.5 per cent in the
first nine months 2013 (9M 2012: 15.7 per cent).
Financially well positioned
Despite the difficult market environment which affected its overall
performance, Haikui Seafood's financial position remained strong, with its
equity increasing from 146.7 million Euros as of December 2012 to 156.5
million Euros as of September 30, corresponding to an equity ratio of 97.2
per cent (December 31, 2012: 94.3 per cent). Cash and cash equivalents went
up to 49.7 million Euros (December 31, 2012: 48.9 million Euros).
Cautious outlook for full-year 2013
Due to the on-going competitive market environment, the weak global economy
and the longer turnaround time taken by the Chinese authorities to inspect
theend product quality of Chinese seafood exporters, Haikui Seafood
remains cautious regarding its guidance for the full-year 2013. For the
financial year 2013 the company expects a year-on-year decrease in revenues
by around 20 per cent measured in RMB terms and an EBIT margin of
approximately 14 per cent.
'Given the current tight raw material situation and the on-going prolonged
inspection process of CIQ, both of which we have no control or influence
over, we may be faced with further challenges in achieving our forecast.
Nevertheless, we will manage the risks in our external environment to the
best of our ability and continue to follow our growth strategy with the
target of a further geographical and production expansion of our business',
says Chen Zhenkui, CEO of Haikui Seafood. The company plans to expand its
processing capacities by constructing a new facility in Dongshan.
Furthermore, it continuously works on expanding its distribution network
and product portfolio in order to strengthen its presence in China, but
also in international markets.
Haikui Seafood will publish its full 9-month report on November 20, 2013.
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 1,150 additional temporary
workers in 9M 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
---------------------------------------------------------------------
07.11.2013 Dissemination of a Corporate News, transmitted by DGAP - a
company of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
---------------------------------------------------------------------
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 - 60E-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
---------------------------------------------------------------------
238385 07.11.2013
Themen in dieser Pressemitteilung:
Unternehmensinformation / Kurzprofil:
Datum: 07.11.2013 - 08:28 Uhr
Sprache: Deutsch
News-ID 313718
Anzahl Zeichen: 9738
contact information:
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 212 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"DGAP-News: Haikui Seafood AG: Challenging business environment continues to impact results"
steht unter der journalistisch-redaktionellen Verantwortung von
Haikui Seafood AG (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
