DGAP-News: FAST Casualwear AG: Relatively stable revenues and EBIT margin in the face of a challenging third quarter
(firmenpresse) - DGAP-News: FAST Casualwear AG / Key word(s): Quarter Results/9-month
figures
FAST Casualwear AG: Relatively stable revenues and EBIT margin in the
face of a challenging third quarter
28.11.2013 / 09:45
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PRESS RELEASE
Nine-months-results 2013
FAST Casualwear AG: Relatively stable revenues and
EBIT margin in the face of a challenging third quarter
- Revenues of 80.0 million Euros
- EBIT margin of 18.0 per cent
- Cash flow increased significantly to 10.2 million Euros
- Guidance slightly adjusted for the full year 2013
Hamburg, November 28, 2013 - FAST Casualwear AG, a manufacturer of casual
footwear and apparel in China, realized revenues of 80.0 million Euros in
the first nine months of 2013 - a decline of 4.0 per cent compared to the
corresponding period 2012.
The segment of FAST's own brand casualwear products and shoes remained the
major revenue driver in the first nine months of 2013, though both segments
decreased slightly. Shoes contributed 48.5 million Euros and casualwear
18.0 million Euros to the total revenues. Although in the reporting period
the number of units of FAST footwear decreased from 12.9 to 9.0 million
produced units, the management was able to increase the average unit
selling price by 40.9 per cent (measured in the local currency Renminbi
(RMB) in this area compared to the reporting period 2012. The development
in the own brand casualwear products was quite similar: The produced units
decreased by 700.000 units to 2.0 million units whereas the average selling
price was 31.1 per cent higher on RMB basis.
In the other business area of FAST, the OEM/ODM segment, revenues are
mainly derived from the sale of casual and sport shoes manufactured for
various international brand owners particularly in Europe and the United
States. The sales in this field sum up to 13.5 million Euros accounted for
16.9 % of total revenues (9M 2012: 18.3 %).
Weaker gross profit and EBIT
In the period from January to September 2013 gross profit went down by 16.1
per cent to 20.9 million Euros (9M 2012: 24.9 million Euros) while the
gross profit margin decreased by around 3.8 percentage points to 26.1 per
cent (9M 2012: 29.9 per cent).
The profit from operations (EBIT) decreased compared to the reference
period 2012 by 24.6 per cent to 14.4 million Euros (9M 2012: 19.1 million
Euros). The main reason for this development lies in the higher selling and
distribution expenses that were increased significantly in line with the
strategy to strengthen the brand building. Within the reporting period they
raised by 82.1 per cent up to 5.1 million Euros (9M 2012: 2.8 million
Euros).
The operating result represents an EBIT margin of 18.0 per cent (9M 2012:
22.9 per cent).
'In line with our forecast the selling and distribution expenses rose by
82.1% to EUR 5.1 million. In the long run we see this as an investment in
our future through continuous brand building. For the short term this led
to a drop of our EBIT margin by 4.8 percentage points to 18.1%', says Wing
Chi Chong, CEO of FAST Casualwear and emphasizes that the company's
stringent cost management resulted in 60.5% lower administrative expensive.
Stable financial position
FAST's total equity increased from 67.6 million Euros at the end of
December 2012 up to 77.1 million Euros on the reference day at September
30, 2013. This represents an equity ratio of 70.5 per cent (December 31,
2012: 68.1 per cent) and provides the company with a favourable starting
position for additional investments and the further development.
Outlook for 2013 slightly adjusted
Due to the accelerating competition on the Chinese apparel market in the
first nine months the management of FAST slightly adjusts its outlook given
in the annual report 2012 and anticipates a revenue growth slightly below
10 per cent on a RMB basis and an EBIT margin in the range of 18 per cent
for the full year 2013 instead of 20 per cent. Due to the current order
situation the Management board is positive to reach this guidance for 2013.
For further information please see the Interim Report Q3 2013 which is
available under the following link:
http://www.fast-casualwear.com/investor-relations /publications.html
About FAST Casualwear AG
FAST Casualwear AG is the German holding company of FAST Group, a Chinese
group of companies engaged in the design, production and sale of
casualwear, consisting of footwear and apparel including accessories. It
mainly designs and produces casualwear under its own brand name 'FAST',
targeting consumers aged between 16 and 35 primarily in the lower tier
cities in China. FAST distributes its own brand products through 28
unaffiliated regional distributors, who sell the products via retail
outlets operated either by themselves or by third party sub-distributors.
Its distribution network consists of 960 retail outlets in over 100 cities
throughout China. FAST also designs and produces footwear as contract
manufacturer for international brand owners, mainly from Europe and the
U.S. FAST's operating facilities are located in the southeast of China in
Jinjiang City, Fujian Province, one of the largest footwear manufacturing
hubs in China. Currently 980 employees work for the FAST Group.
For further information please visit www.fast-casualwear.com or contact
Kirchhoff Consult AG
Dr. Kay Baden
Tel: +49 (0)40 609 186 39
E-mail: 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 FAST Casualwear'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 FAST
Casualwear's forward-looking statements are proving to be incorrect, FAST
Casualwear's actual results may be materially different from those
expressed or implied by such forward-looking statements. FAST Casualwear
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: FAST Casualwear AG
c/o Kirchhoff Consult AG, Herrengraben 1
20459 Hamburg
Germany
Phone: 040 60 91 86 0
Fax: 040 60 91 86 60
E-mail: fast(at)kirchhoff.de
Internet: www.fast-casualwear.com
ISIN: DE000A1PHFG5
WKN: A1PHFGListed: Regulierter Markt in Frankfurt (Prime Standard)
End of News DGAP News-Service
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