IC Companys A/S
Interim report for Q1 2012/13

IC Companys A/S 

07.11.2012 07:46
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IC Companys A/S, Copenhagen, 2012-11-07 07:46 CET (GLOBE NEWSWIRE) -- 

Company Announcement no. 15/2012

                                                           Copenhagen 7 November





Rising gross margin and improving operating profit



Consolidated revenue for Q1 2012/13 amounted to DKK 1,197 million corresponding
to an increase of 2% compared to last financial year. The Premium segment
generated a growth rate of 11% and thus realised growth for the fourth
consecutive quarter. The Group's gross margin amounted to 57.9% which is an
improvement of 0.9 percentage points. The operating profit amounted to DKK 166
million corresponding to an increase of 13%. The total Group performance for
the quarter under review is as expected. In order to enhance earnings further,
a number of initiatives have been and will be implemented of which the purpose
is to reduce the Group's complexity and cost base. 



With this interim report for Q1 2012/13 the Group introduces its new segment
reporting which reflects the corporate strategy based on three segments. 



  -- Revenue from the Premium segment increased by 11% to DKK 682 million (DKK
     612 million) which was driven by growth initiatives in both the core
     markets and new markets. At the same time this segment reported an increase
     of 30% of its operating profit which amounted to DKK 132 million (DKK 101
     million).



  -- Revenue from the Mid Market segment suffered a setback of 14% to DKK 386
     million (DKK 451 million) which was driven by a revenue consolidation of
     the core markets. The Mid Market operating profit was consequently reduced
     by 54% to DKK 16 million (DKK 34 million).



  -- Revenue from the Fast Fashion segment increased by 15% to DKK 129 million
     (DKK 112 million) and at the same time the Fast Fashion operating profit
     rose by 59% to DKK 18 million (DKK 12 million).



  -- Total consolidated revenue for Q1 2012/13 amounted to DKK 1,197 million
     (DKK 1,175 million) corresponding to an increase of 2% compared to last
     financial year.



  -- Gross profit amounted to DKK 693 million (DKK 670 million). The Group thus
     generated a gross margin of 57.9% (57.0%) which is an improvement of 0.9
     percentage points compared to last financial year.



  -- Capacity costs amounted to DKK 527 million (DKK 523 million) corresponding
     to an increase of 1%. After having adjusted for provisions for bad debts of
     DKK 14 million, the cost rate for Q1 2012/13 thus amounted to 42.9% (44.5%)
     corresponding to a reduction of 1.6 percentage points compared to last
     financial year.



  -- Operating profit amounted to DKK 166 million (DKK 147 million). The Group
     thus generated an EBIT margin of 13.9% (12.5%).



  -- The Management will continue to work on initiatives which reduce the
     Group's complexity and cost base. The ongoing initiatives are expected to
     lead to a total full year earnings effect of minimum DKK 100 million
     compared to 2011/12 and have full effect in 2014/15.



  -- Order intake for the spring collection 2013 recorded an increase of 3% for
     the Premium segment, a reduction of 12% for the Mid Market segment and an
     expected increase of 21% for the Fast Fashion segment. The total order
     intake is expected to remain unchanged for the spring collection 2013
     reported in local currencies compared to last year.



Unchanged outlook for 2012/13



Management still expects volatile market conditions for the financial year
2012/13. The Group thus expects a same-store setback and pressure on the
Group's wholesale customers, primarily in the Mid Market segment. However, the
pressure on the Group's gross margin is expected to abate in 2012/13 as a
consequence of normalised discounts and sales activities in the industry.
Furthermore, the new sourcing structure and continuous optimisation are
expected to affect the gross margin favourably. 



Based on this, the Management still expects the consolidated revenue for the
financial year 2012/13 to be lower compared to the financial year 2011/12,
however, the consolidated operating profit for the financial year 2012/13 is
expected to attain the same or a higher level compared to the financial year
2011/12. 



Investments for the financial year 2012/13 are still expected to attain the
same level as the financial year 2011/12, primarily for an expansion of the
distribution in the Premium segment. 



Chief Executive Officer of IC Companys A/S Niels Mikkelsen commented;

'A clear focus on growth in the Premium segment and consolidation in the Mid
Market and Fast Fashion segments means that we can reduce the Group's
complexity and cost base. In total the Group has and will implement
earnings-improving initiatives of at least DKK 100 million compared to the
financial year 2011/12 which all support our ambitions for the Group.' 



IC Companys A/S



Niels Mikkelsen                           Chris Bigler

Chief Executive Officer               Chief Financial Officer





Please direct any questions regarding this announcement to:



Thomas Rohold

Head of Investor Relations and Communication

Phone: +45 32 66 70 93

E-mail: thro@iccompanys.com
News Source: NASDAQ OMX



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Language:     English
Company:      IC Companys A/S
              
               
              Denmark
Phone:        
Fax:          
E-mail:       
Internet:     
ISIN:         DK0010221803
WKN:          
 
End of Announcement                             DGAP News-Service
 
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