POWERLAND AG PRESSEMITTEILUNG - PRESS RELEASE
Frankfurt/Main, 11 December 2015 - Against the background of a challenging market environment, Powerland AG generated Group revenues of EUR 90.9 million in the first nine months of 2015. This corresponds to a decrease of 34% compared to the last year's figure. In the three-month-period from Juli to September, sales amounted to EUR 30.3 million (-29%). Both the Luxury as well as the Casual segment played a major part in contributing to this development: Revenues in the Luxury segment were down 21% to EUR 72.4 million in the first nine months 2015, whereas in the Casual Segment, revenues of EUR 18.5 million were generated (-60%).In spite of this, Group EBIT increased significantly to EUR 15.2 million, a 16% rise as against the first nine months of 2014. The development mainly stems from the increase in gross profit in the Luxury segment, coupled with the decrease in selling & distribution expenses and administrative and other expenses.
As a consequence, the EBIT margin improved from 9.6% to 16.7% in the first nine months 2015. With respect to the third quarter, the margin even improved by 18.2 percentage points to 22.0%.
Net profit of Powerland Group came in at EUR 10.6 million, representing a 21% increase compared to 9M 2014. Based on 15 million shares, this figure is equivalent to earnings per share of EUR 0.71 (9M 2014: EUR 0.59).
Cash and cash equivalents went up from EUR 8.7 million at year-end 2014 to EUR 21.7 million as at 30 September 2015. The increase is mainly due to higher net borrowings while cash generated from operations was at EUR 5.3 million.
Operation-wise, the Powerland Group 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 further downsized its distribution network and closed 26 under-performing stores so that a total of 129 stores remain as at 30 September 2015.
Consequently, Powerland maintains its conservative outlook for 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.
in EUR`000 | Q3 2014 | Q3 2015 | Change (%) | Q1-Q3 2014 | Q1-Q3 2015 | Change (%) |
Revenue | 42,656 | 30,320 | -28.9 | 137,144 | 90,899 | -33.7 |
Luxury | 25,491 | 24,663 | -3.2 | 91,199 | 72,440 | -20.6 |
Casual | 17,165 | 5,657 | -67.0 | 45,945 | 18,459 | -59.8 |
Luxury % | 59.9 | 81.3 | 66.5 | 79.7 | ||
Casual % | 40.1 | 18.7 | 33.5 | 20.3 | ||
Gross profit | 13,454 | 14,232 | 5.8 | 46,461 | 38,963 | -16.1 |
Luxury | 10,747 | 12,574 | 17.0 | 38,923 | 34,668 | -10.9 |
Casual | 2,707 | 1,658 | -38.8 | 7,539 | 4,295 | -43.0 |
EBIT | 1,623 | 6,675 | 311.3 | 13,047 | 15,160 | 16.2 |
Luxury | 859 | 6,857 | 700.3 | 11,075 | 15,446 | 39.5 |
Casual | 764 | -200 | -126.2 | 1,972 | -286 | -114.5 |
EBIT margin | 3.8 | 22.0 | 9.6 | 16.7 | ||
Luxury | 3.4 | 27.9 | 12.1 | 21.3 | ||
Casual | 4.5 | -3.5 | 4.3 | -1.5 | ||
Net profit of the period | 700 | 5,015 | 616.4 | 8,819 | 10,636 | 20.6 |
EPS | 0.05 | 0.33 | 0.59 | 0.71 |
PRESSEMITTEILUNG - PRESS RELEASE
The full financial report for the first nine months of 2015 is now available at http://www.powerland.ag/en/investor-relations/financial-reports
For further information, please contact:
c/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
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