VanCamel AG
VanCamel AG: First nine months of FY 2014 operationally very successful
VanCamel AG / Key word(s): Interim Report/9-month figures VanCamel AG: First nine months of FY 2014 operationally very successful – Adjusted Group revenue grew by 8.5% – EBT margin of 25.1% – Operating cash flow improved to EUR 32.2 million – Forecast confirmed Hamburg, 28 November 2014 – VanCamel AG (Prime Standard, ISIN DE000A1RFMM9, VC8) today publishes its financial figures for the first nine months of 2014 which were operationally very successful. After adjustment for higher rebates, sales grew 8.5% in renminbi in the first nine months of 2014 compared with the same period of last year. The pre-tax margin remained high at 25.1% and the operating cash flow was over EUR 30 million in the reporting period. “Revenue growth and margin trends were in line with our expectations and the company’s financial position remains very solid. Our positive performance is still driven by steadily rising domestic consumption in China and the increasing fashion-awareness of the country’s inhabitants. This was confirmed at this year’s China Fashion Week from 25 October to 2 November: it is one of the fastest growing fashion weeks in the world”, commented Xiaming Ke, CEO of VanCamel AG. Sales and earnings In the first nine months of 2014, the VanCamel Group increased sales revenues by 2.5% year-on-year to EUR 122.8 million (9M 2013: EUR 119.8 million). It should be noted that the increase in rebates for distributors from 4.5% in 2013 to 7.5% in 2014 will reduce revenue growth by roughly the same amount this year and the renminbi devalued versus the euro. After adjustment for the depreciation of the operating currency (renminbi) versus the euro and the increase in rebates, growth was 8.5%. Both product lines contributed to the positive overall performance. Revenue from apparel increased by 2.9% from EUR 83.7 million to EUR 86.1 million in the reporting period and revenue from shoes rose 1.5% from EUR 36.2 million to EUR 36.7 million. The company’s gross profit was EUR 38.3 million at the end of the first nine months of 2014 (9M 2013: EUR 40.1 million), giving a gross profit margin of 31.2% (9M 2013: 33.5%). The other costs increased considerably year-on-year in the first nine months of 2014. While marketing expenses rose to EUR 5.9 million, up from EUR 5.3 million in the first nine months of 2013, administrative expenses increased from EUR 1.4 million in the first nine months of 2013 to EUR 1.7 million in the reporting period as a result of the stock market listing. The operating result (EBIT) was EUR 30.6 million in the first nine months of 2014 (9M 2013: EUR 33.5 million). As in the comparable prior-year period, VanCamel did not have any interest expense; interest income rose to EUR 224 thousand due to the increase in cash and cash equivalents (9M 2013: EUR 134 thousand). The financial result was slightly positive, so EBT was EUR 30.9 million (9M 2013: EUR 33.7 million). Tax expense increased from EUR 8.9 million in the first nine months of 2013 to EUR 10.8 million in the reporting period because additional tax provisions were established in case the rebates granted to distributors are not tax-deductible. The profit for the first nine months was therefore EUR 20.0 million (9M 2013: EUR 24.7 million). This corresponds to earnings per share of EUR 1.34 (9M 2013: EUR 1.65). With a net cash flow from operating activities of EUR 32.3 million, VanCamel was still well-financed in the first nine months of 2014 (9M 2013: EUR 29.7 million). The net rise in cash and cash equivalents in the reporting period was EUR 31.1 million (9M 2013: EUR 13.2 million). Cash and cash equivalents increased to EUR 104.7 million as of 30 September 2014 (31 December 2013: EUR 66.2 million). VanCamel has neither current nor non-current liabilities to banks. The carrying amount of equity was EUR 107.9 million as of 30 September 2014 (31 December 2013: EUR 81.6 million) corresponding to an equity ratio of 75.4% (31 December 2013: 77.1%). Outlook Since VanCamel meets customers’ desire for greater individuality and adopted a clear brand strategy to differentiate itself from competitors from an early stage, the company is able to benefit from the increasing fashion and brand awareness of the Chinese population. To raise visibility of the brand among consumers still further, VanCamel in the reporting period continued to increase spending on marketing. The marketing strategy focuses on opening more flagship stores and advertising aimed specifically at the target group, using billboards, printed media and the internet. In addition, VanCamel is continuing to invest in its in-house design and development team and is currently exploring the possibility of collaboration with fashion and design schools and universities to gain constant access to new talent and ideas in the fashion sector. By contrast, no investment in property, plant and equipment is planned for 2014. The results for the first nine months were in line with management expectations. Assuming that China’s domestic market continues to grow and the target group’s fashion affinity increases further, the company expects volume sales to increase steadily in the coming years. Based on the present order situation, the Management Board still assumes that on a euro basis (excluding currency effects), the Group will grow revenue by around 4.0% in 2014. Despite the rebate rise for distributors from 4.5% in FY 2013 to 7.5% in FY 2014, profits remained stable in the reporting period. The Management Board is therefore reiterating its forecast that the EBT margin will increase to around 25% in FY 2014. The full interim report for the first nine months of FY 2014 is available at Investor Relations/Downloads on the company’s website at www.vancamel.de/en.
The following effect should be borne in mind when comparing the revenue and earnings figures for the present year and the prior year: Before the transition to IFRS, VanCamel made shop fittings available to its distributors free of charge, capitalized the associated costs and depreciated the shop fittings over three years. Because of problems with evidence and evaluation, all shop fittings have been recognized retrospectively in profit and loss in the year of investment. Since 2012, the shop fittings have no longer been provided by VanCamel. To continue to support distributors in the ongoing modernization of their stores, VanCamel introduced sales rebates. The rebate has been increased to 7.5% from 2014 with preceding stepwise increases. It was 1.2% in 2012 and increased to 4.5% in 2013. Sales revenue decreases by roughly the same amount as the increase, but the impact on operating income is lower because depreciation is no longer recognized for shop fittings.
VanCamel AG is the German holding company of an established Chinese fashion label, which employs more than 200 workers in the design, marketing and distribution of own branded apparel, footwear and accessories. VanCamel products address the young, well-funded urban middle-class, particularly targeting male consumers aged between 25 and 40 primarily residing in tier 2 and tier 3 cities, aspiring after upper middle class fashion styles. The prizewinning design of VanCamel’s apparel is made in-house whereas the design of the footwear is outsourced based on the conceptual ideas of VanCamel. The production of both apparel and footwear is completely outsourced to local contract manufacturers. VanCamel is an established national brand with a PRC-wide reach. For further information about the company visit: www.vancamel.de/en
VanCamel AG
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Language: | English | |
Company: | VanCamel AG | |
Ferdinandstraße 25 | ||
20095 Hamburg | ||
Germany | ||
Phone: | 040 689999-0 | |
Fax: | 040 689999-10 | |
E-mail: | ir@vancamel.de | |
Internet: | www.vancamel.de | |
ISIN: | DE000A1RFMM9 | |
WKN: | A1RFMM | |
Listed: | Regulierter Markt in Frankfurt (Prime Standard) | |
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