DGAP-News: Powerland AG shows strong ongoing operating growth and performance in first half-year 2011
(firmenpresse) - DGAP-News: Powerland AG / Key word(s): Interim Report/Half Year
Results
Powerland AG shows strong ongoing operating growth and performance in
first half-year 2011
24.08.2011 / 07:34
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Powerland shows strong ongoing operating growth and performance in first
half-year 2011
- Strong revenue growth in Luxury segment in Q2 of 49% (y-o-y) in RMB
- Luxury segment EBIT gained 74.3% to reach EUR 8.8 million and EBIT
margin improved to 24.6 % in first half 2011
- Group revenue grew by 25.2% to EUR 67.4 million in first half 2011
- Group gross profit went up 39.9% to EUR 30.2 million in first half
2011with gross profit margin up to 44.8%
- Group EBIT increased by 34.8% to EUR 18.4 million and EBIT margin rose
to 27.3% in first half 2011
Frankfurt, August 24, 2011. Powerland AG (Prime Standard, ISIN:
DE000PLD5558), the leading Chinese manufacturer of exclusive luxury
handbags and leather goods and listed on the Frankfurt Stock Exchange since
11 April 2011 presented today its Quarterly Financial Report for the second
quarter running from 1 April to 30 June 2011 and for the first six months
from 1 January to 30 June 2011.
'Due to the opening of new stores and a healthy demand in our products
during the first half-year 2011 we achieved strong revenue growth. We will
therefore continue with our successful strategy, and we re-iterate our
plans for the expansion of Company stores to more than 170 by the end of
this year. We expect key financial figures as well as the company earnings
position to continue to benefit from the operating growth, the improved
product mix and the strength of the Powerland brand' underlined Shunyuan
Guo, CEO of Powerland AG, with regards to the strong performance of the
Company.
Group revenue measured in RMB grew by 29.5% in Q2 2011; in the first half
2011 revenue increased by 26.7% in RMB. The increase in revenue was driven
by an increase in sales of products from the Luxury segment of
approximately 49.1%, and an increase of 11.7% in the sales of products from
the Casual segment, during the second quarter. In the first half-year of
2011 revenue from the Luxury segment increased by approximately 42.7% with
the Casual segment also growing by 12.4% in RMB.
Measured in EUR revenue increased from EUR 27.7 million in Q2 2010 by EUR
5.7 million, or 20.4%, to EUR 33.4 million in Q2 2011. In the first half
2011 revenue increased from EUR 53.8 million by EUR 13.4 million or 25.2%,
to EUR 67.4 million.
Revenue in the Luxury segment increased from EUR 13.2 million in Q2 2010 by
EUR 5.1 million, or 38.6%, to EUR 18.3 million in Q2 2011. In the first
half 2011 revenue in the Luxury segment increased from EUR 25.5 million by
EUR 10.4 million, or 40.9%, to EUR 35.9 million. These increases were
mainly driven by an expansion of Powerland's retail network and a
significant increase in selling prices as well as an increase in mix. The
number of Powerland stores rose from 98 as at 30 June 2010 to 123 as at 30
June 2011 opening in the second quarter 2011 eleven distributor-operated
stores and the first self-operated exclusive store in Shenyang.
Revenue in the Casual segment increased from EUR 14.5 million in Q2 2010 by
EUR 549 thousand, or 3.8%, to EUR 15.1 million in Q2 2011. In the first
half 2011 revenue in the Casual segment increased from EUR 28.3 million by
EUR 3.2 million, or 11.%, to EUR 31.5 million. These increases were mainly
due to the recovery of the global export market for synthetic leather
products and the shifting to higher margin fabric based products.
Powerland's gross profit rose from EUR 11.2 million by EUR 3,9 million to
15.1 million EUR in the second quarter 2011. In the first half of 2011
gross profit also increased by EUR 8.6 million, or 39.9%, to EUR 30.2
million over last year's EUR 21.6 million. Overall, this was driven by
increases in the selling prices of the products exceeding increases in
input costs such as raw materials, labour and overheads, and a positive
effect from changes in the product mix.
Group EBIT increase of 34.8% in the first half 2011 from EUR 13.6 million
in H1/2010 to EUR 18.4 million in H1/2011 was mainly driven by the
outstanding EBIT boost of 74.3% in the Luxury segment from EUR 5.1 million
to EUR 8.8 million in the same period besides an EBIT increase of 11.3%
also in the Casual segment from EUR 8.6 million to EUR 9.5 million.
Finance costs increased from EUR 0.4 million in H1/2010 to EUR 1.3 million
in H1/2011 due to increases in net foreign exchange losses and borrowings
obtained towards the end of the prior year to finance increased working
capital requirements. Group income tax increased from EUR 1.8 million in
H1/2010 to EUR 4.5 million in H1/2011 as the tax rebate of 50% that
Powerland Fujian was enjoying ended in the financial year 2010. Net profit
for the period increased by 8.7% to EUR 12.5 million resulting in a net
profit margin of 18.5%, after EUR 11.5 million in the prior years' period.
Earnings per share of the first half 2011 declined from 1.15 EUR in the
first half 2010 to 1.02 EUR due to the dilutive effect of the capital
increase that happened as part of the company IPO.
Due to the business expansion, net working capital went up EUR 6.2 million
to EUR 27.0 million in the first half 2011 compared to previous year.
Equity increased from EUR 27.2 million as at 31 December 2010 by EUR 78.8
million to EUR 106.0 million as at 30 June 2011 due to the proceeds from
the IPO of EUR 75.0 million for the new 5 million new shares issued and
increased retained earnings of EUR 12.5 million, partially offset by
exchange differences on translating foreign operations of EUR 1.1 million.
The successful IPO of Powerland AG on the Frankfurt Stock Exchange took
place on 11 April 2011. The total number of shares outstanding since then
amounts to 15 million. With the new capital raised, Powerland will continue
to build its' brand, expand in distribution network and vertical
integration.
The overall sales and margin development was on track for the first half of
2011, and we feel confident that we will meet the targets conveyed in the
financial projection for 2011 to achieve organic sales growth of more than
25% (in RMB) compared to 2010, even if the growth rate of Chinese national
economy is expected to slow down, due to macro economic consolidation. With
regards to EBIT, we are confident that we will achieve margins of at least
25%, better than those seen in 2010, assuming that no substantial raw
material price and overhead cost increases occur in the remaining part of
this year.
We will also continue to pursue initiatives that have already been launched
with the aim of improving the Company's results, improving pricing power,
ensuring more efficient working capital and cash flow management,
implementing better cost controls, upgrading the product mix in the Casual
segment and releasing innovative products in the Luxury segment.
Group key figures Q2 Q2 H1 H1 Change Change* The computation of basic earnings per share for Q1 and H1 2010 was based
Overview (EUR'000) 2010 2011 2010 2011 absolute in
%
Revenue 27,714 33,368 53,837 67,421 13,584 25.2%
thereof Luxury 13,210 18,315 25,500 35,932 10,432 40.9%
Segment
thereof Casual 14,504 15,053 28,337 31,489 3,152 11.1%
Segment
Gross profit 11,191 15,043 21,575 30,187 8,612 39.9%
EBIT 6,552 8,336 13,643 18,391 4,748 34.8%
Net profit for the 5,439 5,337 11,493 12,498 1,005 8.7%
period
EPS in EUR 0.54* 0.37** 1.15* 1.02**
31/12/ 30/06/
2010 2011
Total equity 27,205 106,007 78,802
Equity ratio 37.5% 73.1%
on profit of the period and the 10 million shares issued during the
reorganisation exercise as if they were issued on 1 January 2010.
** based on the profit of the period and average weighted shares. The
calculation has been computed on the basis of an average of 14,444,444
shares for Q2 2011 and 12,222,222 shares for H1 2011 after taking into
account the 5 million new shares issued during the IPO in April 2011.
For additional information, please contact:
Powerland AG
Investor Relations Phone: +49 (0)172 - 674 97 92
Jörg Peters Fax: +49 (0)6196 - 777 99 66
Hauptstrasse 129 E-Mail: ir(at)powerland.ag
65760 Eschborn Internet: http://www.powerland.ag
Public Relations Phone: +49 (0)6196 - 776 41 10
Karl-Friedrich Brenner Fax: +49 (0)6196 - 776 41 22
Hauptstrasse 129 E-Mail: pr(at)powerland.ag
65760 Eschborn Internet: http://www.powerland.ag
End of Corporate News
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Language: English
Company: Powerland AG
Lyoner Straße 14
60528 Frankfurt am Main
Germany
Phone: +49 172 - 67 49 792
Fax: +49 6196 - 777 99 66
E-mail: info(at)powerland.ag
Internet: www.powerland.ag
ISIN: DE000PLD5558
WKN: PLD555
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, München,
Stuttgart
End of News DGAP News-Service
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136693 24.08.2011
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