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Feike AG reports successful expansion according to its growth strategy
DGAP-News: Feike AG / Key word(s): Final Results 2015-04-30 / 08:56 --------------------------------------------------------------------- Feike AG reports successful expansion according to its growth strategy * Increase in revenues by 14.0% to 123.3 million Euros (2013: 108.2 million Euros) * Rise in EBIT of 10.5% to 32.1 million Euros (2013: 29.0 million Euros) * Cash position increased by 33.2 million Euros to 74.0 million Euros as at 31 December 2014 Berlin, 29 April 2015 - For the financial year 2014 Feike AG, the German holding company of the second largest manufacturer of children's footwear in China*, reports the successful listing on the Frankfurt Stock Exchange and the expansion of its business in accordance with the growth strategy. During the reporting period the number of retail outlets increased to a total of 2,393 as at 31 December 2014 - a plus of 120 retail outlets compared to 31 December 2013. The number of units of children's footwear and apparel sold was thus increased by 11.1% to about 14.7 million units. While all of Feike AG's children's footwear brands recorded double-digit revenue growth rates during the reporting period, its apparel products even grew at more than 25.0%. Furthermore, Feike AG was able to increase the general price range across its products by about 1.1%, whereby the gross profit margin was improved. Due to the expansion, Feike AG achieved growth in all relevant financial figures and maintained its high level of profitability. In this context, revenues increased to 123.3 million Euros, thereby exceeding last year's revenues by 14.0% (2013: 108.2 million Euros). The gross profit amounted to 39.0 million Euros, representing an increase of 18.2% compared to the previous year (2013: 33.0 million Euros). The operating profit (EBIT) reached about 31.9 million Euros corresponding to an increase of 10.5% (2013: 29.0 million Euros). The EBIT margin remained relatively stable at 26.0% compared to last year's EBIT margin of 26.8%. Without the non-recurring IPO expenses, the EBIT margin would have increased to 27.0%, however. The group's equity increased from 45.1 million Euros as at 31 December 2013 by 68.9% to 76.2 million Euros as at 31 December 2014. The increase was mainly attributable to the strong profit after tax. This positive business development led to a substantial rise in the group's cash position, which increased from 40.8 million Euros as at 31 December 2013 to 74.0 million Euros as at 31 December 2014. Compared to the financial year 2013, Feike AG has increased its research and development spending by about 17%. In 2014, Feike AG has designed and developed 4,028 product design samples, of which 1,473 were eventually used for mass production. In 2015, it is planned to invest even more into Feike AG's existing design and development capacities as it is expected that competition from larger players in the children's footwear and apparel market will increase. Jiafa Li, CEO of Feike AG: "We are very satisfied with the business development and the market position we have achieved in 2014. The same applies to the increased efforts in our research and development activities. We are confident that both will ensure our competitiveness in the future despite an expected rise in competition in our market". In 2015, Feike plans to further expand its distribution and sales network by increasing the number of retail outlets to approximately 2,500. Regarding its financial figures, Feike is expecting relatively stable gross and net profit margins and double-digit growth in revenue in 2015. The growth of revenue in 2015 is forecast based on the assumption of the RMB appreciating against the Euro. Measured in RMB, the growth of revenue in 2015 is expected to be in the range of 4% to 6%. *By retail sales volume in 2012 according to the "Report on Children's Apparel and Footwear Markets in China" prepared by the Smart Cube. (the "Smart Cube Report") About Feike AG Feike AG is the second largest manufacturer of children's footwear in China, according to a market study*. The company sells its wide range of products comprising children's shoes and clothing under three well-known brands - "Feike", "Atongmu" and "Lanmao". The sales network currently includes 2,393 retail outlets in 27 provinces of China. As at 31 December 2014, Feike Group had 1,082 full-time employees as compared to 1,084 full-time employees of the corresponding period in 2013. Feike AG's shares are traded on the Frankfurt Stock Exchange under the ticker symbol FKE and ISIN DE000A1YCNB3. The annual report of Feike AG for the financial year 2014 will be available on the corporate website under: http://www.feike-ag.com/investor-relations/publications.html For further Information, please contact: Kirchhoff Consult AG Andreas Friedemann Tel: +49(0) 40 609 186 50 E-Mail: andreas.friedemann@kirchhoff.de Website: http://www.feike-ag.com Disclaimer concerning prognoses This communication contains forward-looking statements. Forward-looking statements are statements that are not historical facts instead they reflect Feike AG's current views and expectations and the assumptions underlying them about future events. Forward-looking statements are naturally subject to many risks and uncertainties. If any of such risks and uncertainties materialise or if the assumptions underlying any of Feike's forward-looking statements are proving to be incorrect, Feike AG's actual results may be materially different from those expressed or implied by such forward-looking statements. Feike AG does not assume any obligation to update these forward-looking statements. Any forward-looking statement therefore only refers to the date on which it is made. --------------------------------------------------------------------- 2015-04-30 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP 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: Feike AG Friedrichstraße 90 10117 Berlin Germany Phone: +49 (0) 30 20253604 Fax: +49 (0)30 20253333 E-mail: feike@kirchhoff.de Internet: www.feike-ag.de ISIN: DE000A1YCNB3 WKN: A1YCNB Listed: Regulated Market in Frankfurt (General Standard); Regulated Unofficial Market in Dusseldorf End of News DGAP News-Service --------------------------------------------------------------------- 351195 2015-04-30
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