Haikui Seafood AG
Nine-month results of Haikui Seafood still reflect difficult market conditions in the seafood-processing sector
DGAP-News: Haikui Seafood AG / Key word(s): Quarter Results 21.11.2014 / 08:23 --------------------------------------------------------------------- Nine-month results of Haikui Seafood still reflect difficult market conditions in the seafood-processing sector * Revenue down by 12.8 per cent to 87.4 million Euros * EBIT margin of 11.4 per cent * First tranche of DEG loan for construction of new facility disbursed * Strong fourth quarter 2014 expected * Full-year 2014 guidance confirmed Frankfurt am Main, 21 November, 2014 - Even though the 9-month results 2014 of Haikui Seafood show a decrease in revenue, the company succeeded in narrowing down its year-on-year revenue decline compared to the half-year results. Notwithstanding the ongoing challenging environment for seafood processors, Haikui Seafood is cautiously optimistic about its fourth quarter results and therefore confirms its full-year guidance. For 9-month 2014, Haikui Seafood registered revenue of 87.4 million Euros (9M 2013: 100.3 million Euros) on the back of lower sales quantities stemming from keen competition and headwinds in the global economy. Despite the challenging environment, the company has succeeded in narrowing the gap in its year-to-date revenue decline to 12.8 per cent compared to 15.7 per cent in half-year. Haikui Seafood's frozen products segment remains the main contributor with revenue of 69.5 million Euros (9M 2013: 82.6 million Euros), accounting for 79.5 per cent (9M 2013: 82.4 per cent) of total revenue. In the canned products segment, revenue went slightly up to 17.9 million Euros (9M 2013: 17.7 million Euros). This increase mainly resulted from higher sales of canned abalone. Lower revenue and higher production costs caused gross profit to drop by 26.3 per cent to 13.8 million Euros in the first nine months of 2014. The gross profit margin fell by 2.9 percentage points to 15.8 per cent (9M 2013: 18.7 per cent) mainly due to higher raw material and higher direct labour cost per unit of production that could not be fully passed on to the market. Accordingly, EBIT went down by 31.7 per cent to 10.0 million Euros (9M 2013: 14.6 million Euros) corresponding to an EBIT margin of 11.4 per cent (9M 2013: 14.5 per cent). Net profit decreased in the reporting period by 19.5 per cent to 7.6 million Euros (9M 2013: 9.5 million Euros), corresponding to a net profit margin of 8.7 per cent (9M 2013: 9.5 per cent). Pursuing long-term growth plans Thanks to its double-digit EBIT margin and strong equity position of 175.7 million Euros (31 December, 2013: 155.4 million Euros), Haikui Seafood continues to pursue its long-term growth plans. The construction of the new factory in Dongshan Island is proceeding as planned. In addition, the relocation agreement signed in October is a very positive development for Haikui Seafood: It not only allows the company to build a highly efficient seafood processing plant with modern and faster equipment at attractive terms but also puts the company in an excellent position to realise its expansion plans. The investment is partly financed by the loan, which Haikui Seafood secured at the end of 2013 from the DEG (Deutsche Investitions- und Entwicklungsgesellschaft). The first tranche amounting to 5.0 million US dollar (approximately 3,9 million Euros) was disbursed on 12 November 2014. Cautiously optimistic outlook Despite the on-going tough market conditions, Haikui Seafood expects a strong business development in the fourth quarter of 2014 and maintains its guidance for the full-year 2014. The company is cautiously optimistic to achieve a revenue growth of 5 to 10 per cent, measured in RMB terms, and an EBIT margin in the range between 11 and 13 per cent. However, since the anticipated recovery in the global economy is weaker than expected, the full-year results may come in at the lower end of the given ranges. The full nine-month report 2014 of Haikui Seafood AG is available on the company's website under: http://www.haikui-seafood.com/investor-relations/publications/reports/ About Haikui Seafood AG Haikui Seafood processes fish and seafood for the Chinese and international markets. Its products range includes frozen or canned fish and seafood, produced from a large variety of species of raw fish and seafood, including prawn, crab, various fish species and shellfish as well as cephalopods. Clients of Haikui Seafood are distributors in China and overseas, located mainly in Asia, the U.S. and Europe. Haikui Seafood employs 669 permanent employees and 920 additional temporary workers as of September 30, 2014. The company has an annual processing capacity of more than 34,000 tonnes (output). The processing facilities are located in the South-East of China on Dongshan Island, Zhangzhou, Fujian Province. Haikui Seafood operates a streamlined supply chain including self-owned processing facilities, in-house research and product development capacities as well as warehousing and cold storage facilities while simultaneously cooperating closely with raw goods suppliers. For further information please visit www.haikui-seafood.com or contact Kirchhoff Consult AG Anja Ben Lekhal Phone: +49 (0)40 609 186 55 anja.benlekhal@kirchhoff.de Disclaimer concerning prognoses This communication contains forward-looking statements. Forward-looking statements are statements that are not historical facts instead they reflect Haikui Seafood's current views and expectations and the assumptions underlying them about future events. Forward-looking statements are subject to many risks and uncertainties. If any of such risks and uncertainties materialise or if the assumptions underlying any of Haikui Seafood's forward-looking statements are proving to be incorrect, Haikui Seafood's actual results may be materially different from those expressed or implied by such forward-looking statements. Haikui Seafood does not intend or assume any obligation to update these forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made. --------------------------------------------------------------------- 21.11.2014 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: Haikui Seafood AG c/o Norton Rose Fulbright, Taunustor 1 60310 Frankfurt am Main Germany Phone: +49 40 60 91 86 - 0 Fax: +49 40 60 91 86 - 60 E-mail: alan.gey@haikui.com.cn,anja.benlekhal@kirchhoff.de Internet: www.haikui-seafood.de ISIN: DE000A1JH3F9 WKN: A1JH3F Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf End of News DGAP News-Service --------------------------------------------------------------------- 298427 21.11.2014
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