Annual report 2009/10

Aug 11, 2010, 14:53

Profit announcement for 2009/10

Consolidated revenue for 2009/10 amounted to DKK 3,495 million which is a decrease of 3% compared to last year. The Group’s gross margin has been under considerable pressure due to the foreign currency exchange development. The optimisation process has, however, resulted in a gross margin at a historically high level of 60.8%. Operating profit amounted to DKK 283 million which exceeds the announced expectation. This satisfactory financial performance isattributable to a number of initiatives implemented by Management to ensure a profitable business operation.

 

The Board of Directors of IC Companys A/S has approved the Annual Report for the period 1 July 2009 – 30 June 2010 at a Board Meeting held on 10 August 2010.

  • Consolidated revenue for 2009/10 amounted to DKK 3,495 million (DKK 3,621 million) which is a decrease of 3% compared to last year. The latest announced expectation was DKK 3,450-3,500 million. Revenue for the fourth quarter 2009/10 amounted to DKK 634 million corresponding to an increase of 13%.

  • Wholesale revenue amounted to DKK 2,121 million (DKK 2,324 million) which constitutes a setback of 9%. Revenue for the fourth quarter 2009/10 rose by 23% to DKK 297 million.

  • Retail revenue amounted to DKK 1,374 million (DKK 1,297 million) and thus represents a 6% increase. Revenue for the fourth quarter 2009/10 rose by 5% to DKK 337 million.

  • Gross profit amounted to DKK 2,124 million (DKK 2,156 million). The Group thus generated a gross margin of 60.8% (59.6%). Gross profit for the fourth quarter 2009/10 rose by 16% to DKK 388 million.

  • Capacity costs amounted to DKK 1,842 million (DKK 1,994 million) corresponding to a reduction of 8% and an achieved cost efficiency of 52.7% (55.1%). Capacity cost for the fourth quarter 2009/10 were reduced by 6% to DKK 464 million.

  • Operating profit amounted to DKK 283 million /DKK 162 million). The Group thus generated an EBIT margin of 8.1% (4.5%). The latest announced expectation was DKK 240-270 million. The profit exceeded expactations which is attributable to an improved gross margin and cost rate. Operating profit for the fourth quarter 2009/10 improved by DKK 80 million to a loss of DKK 76 million.

  • Realised investment level for 2009/10 amounted to DKK 123 million (DKK 136 million) compared to the latest announced expectation of DKK 100-120 million.

  • Order intake for the winter collection 2010 is expected to record an increase of 14%.

  • The Board of Directors recommends a dividend payment of DKK 70 million, corresponding to DKK 4.25 per ordinary share eligible for dividend, for the financial year 2009/10.

  • The Board of Directors has resolved to grant 60,000 share options to the Executive Board.

  • The Board of Directors has resolved to grant maximum 170,000 warrants to other executives provided that a resolution granting such authority is adopted at the Ordinary Annual General Meeting.

 

Outlook for 2010/11

  • The growth initiatives embarked on by the Group are expected to impact increasingly in 2010/11. At the same time a substantial pressure on the Group’s gross margin is expected as a consequence of increasing sourcing costs and a more fierce competition in the wholesale market. On this basis, revenue is expected to attain a level of DKK 3,800-3,900 million and the operating profir a level of DKK 320-360 million for 2010/11.

  • Investments in the region of DKK 130-150 million are expected primarily for an expansion of the distribution and sales promoting improvements of the IT platform.

 

Further information

Niels Mikkelsen 

Chief Executive Officer

Phone: +45 3266 7721

 

Chris Bigler

Chief Financial Officer

Phone: +45 3266 7017