FAST Casualwear AG
FAST Casualwear AG: Relatively stable revenues and EBIT margin in the face of a challenging third quarter
FAST Casualwear AG / Key word(s): Quarter Results/9-month figures PRESS RELEASE Nine-months-results 2013 FAST Casualwear AG: Relatively stable revenues and – 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 Disclaimer concerning prognoses End of Corporate News 28.11.2013 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: | 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@kirchhoff.de | |
Internet: | www.fast-casualwear.com | |
ISIN: | DE000A1PHFG5 | |
WKN: | A1PHFG | |
Listed: | Regulierter Markt in Frankfurt (Prime Standard) | |
End of News | DGAP News-Service |
242083 28.11.2013 |