At EUR 8.5 million, Group EBIT decreased by 26% as against the first half year of 2014 due to the decrease in sales as well as in gross profit. EBIT margin improved from 12.1% to 14.0%. With respect to the second quarter, the margin even improved by 3.7 percentage points to 17.6%.
Net profit of Powerland Group came in at EUR 5.6 million, representing a 31% decrease compared to H1 2014. Based on 15 million shares, this figure is equivalent to earnings per share of EUR 0.37 (-32%).
Cash and cash equivalents went up from EUR 8.7 million at year-end 2014 to EUR 24.0 million as at 30 June 2015. The increase is mainly due to higher net borrowings while cash generated from operations was negative at EUR -2.8 million.
Operation-wise, the Powerland Group launched its new product series and is constantly enhancing its online and offline brand awareness. Despite the achievements, Powerland faces substantial challenges: As the Chinese economy slows down and the competition in the Luxury segment becomes increasingly intensive, Powerland has to lower down unit selling prices and offer deeper discounts for distributors; at the same time, the price war in the casual segment remains unchanged.
Consequently, Powerland maintains its conservative outlook about 2015. Group revenue is expected to decline substantially due to weakening demand from home and abroad. Although Powerland will close down more stores and implement more cost-effective marketing campaigns so as to reduce operating expenses, group EBIT will fall as well because of a sharp top-line decline. Meanwhile, Powerland will continue to adopt a stringent working capital management to
ensure a healthier cash flow situation.
1/2
In million EUR | Q2 2014 | Q2 2015 | Change | H1 2014 | H1 2015 | Change |
Revenue | 55.2 | 30.6 | -44.6% | 94.5 | 60.6 | -35.9% |
Luxury | 35.4 | 24.5 | -30.7% | 65.7 | 47.8 | -27.3% |
Casual | 19.8 | 6.0 | -69.5% | 28.8 | 12.8 | -55.5% |
Luxury % | 64.2 | 80.3 | 69.5 | 78,9 | ||
Casual % | 35.8 | 19.7 | 30.5 | 21,1 | ||
Gross profit | 18.6 | 13.3 | -28.4% | 33.0 | 24.7 | -25.1% |
Luxus | 15.5 | 11.8 | -23.7% | 28.2 | 22.1 | -21.6% |
Casual | 3.1 | 1.5 | -52.2% | 4.8 | 2.6 | -45.4% |
EBIT | 7.7 | 5.4 | -29.8% | 11.4 | 8.5 | -25.7% |
Luxus | 6.6 | 5.5 | -17.1% | 10.2 | 8.6 | -16.1% |
Casual | 1.1 | -0.1 | -109.4% | 1.2 | -0.1 | -107.1% |
EBIT margin | 13.9% | 17.6% | +3.7pp | 12.1% | 14.0% | +1.9pp |
Luxus | 18.7% | 22.3% | +3.6pp | 15.5% | 17.9% | +2.4pp |
Casual | 5.3% | -1.6% | -6.9pp | 4.2% | -0.7% | -4.9pp |
Net profit of the period | 4.7 | 3.7 | -20.9% | 8.1 | 5.6 | -30.8% |
EPS | 0,31 | 0.25 | -19,4% | 0.54 | 0.37 | -31,5% |
The full financial report for the first half year of 2015 is now available at http://www.powerland.ag/en/investor-relations/financial-reports
For further information, please contact:
Powerland AGc/o GFD - Gesellschaft für Finanzkommunikation mbH Fellnerstrasse 7-9
60322 Frankfurt am Main
Germany
Phone: +49 (0) 69 66 554 - 459
Fax: +49 (0) 69 66 554 - 276
E-mail: ir@powerland.ag
Home: http://www.powerland.ag
2/2
distributed by |