Annual report 2008/09

Sep 10, 2009, 8:00

Profit announcement for 2008/09

In the financial year 2008/08, the Group revenue was DKK 3,601 million, which is a decrease of 4% relative to last year. After non-recurring costs amounting to DKK 115 million, operating profit came to DKK 162 million, which is in the high end of the range expected by the Executive Board. This is, in the light of the difficult market conditions, a very satisfactory result, which was achieved on the basis of the line of initiatives launched by the Executive Board to ensure healthy operations. Total cash flow realised was DKK 116 million, which is an increase of DKK 200 million relative to the financial year 2007/08.

At its meeting on 9 September 2009 the Board of Directors of IC Companys A/S has approved the Audited Annual Report for the period 1 July 2008 – 30 June 2009.

  • In the financial year 2008/09, the Group reported revenue of DKK 3,601 million (DKK 3,737 million), which constitutes a setback of 4%. Same-store sales in the Group’s own stores declined by 7%.
  • Wholesale revenue recorded DKK 2,357 million, which constitutes a decrease of 6%.
  • Retail revenue recorded DKK 1,080 million, thus representing a 1% setback.
  • Gross profit came to DKK 2,136 million (DKK 2,259 million). The Group thus recorded a gross margin of 59.3% (60.4%). Adjusted for non-recurring costs of DKK 35 million, gross margin came to 60.3 % (60.8%).
  • Operating costs recorded DKK 1,974 million (DKK 1,910 million), which is an increase of 3%. Adjusted for non-recurring costs of a total of DKK 80 million, operating costs were retained at the same level relative to last year.
  • Operating profit saw a setback of 54% to DKK 162 million (DKK 349 million), which equals an EBIT margin of 4.5% (9.3%). Adjusted for non-recurring impacts amounting to a total of DKK 115 million, an EBIT margin of 7.7% (10.4%) is achieved.
  • The total cash flow was an inflow of DKK 116 million (an outflow of DKK 84 million).
  • Order intake for the winter collection 2009 is finally completed recording an 18% decrease in local currencies and 24% in the reporting currency.
  • As previously announced, it was decided to discontinue the share buyback programmes and the Board of Directors proposes that no dividend is to be paid to the shareholders for the financial year 2008/09. Instead, excess cash flows will be allocated to a reduction of the Group’s short term debt.
  • The Board of Directors has resolved to grant 233,500 stock options to the Executive Board and other executive employees.

2009/10 full year guidance

  • The market development remains uncertain, and visibility is therefore low. In consequence, revenue for the full year 2009/10 is expected to be in the region of DKK 3,300 – 3,400 million. The Executive Board launched a number of initiatives to counter the decreasing activity, including an adjustment of the fixed costs. As a result, operating profit for the full year 2009/10 is expected to be in the region of DKK 150 – 200 million.
  • Investments in the region of DKK 100 – 120 million are expected to be carried through, primarily for an expansion of the distribution and sales promoting improvements of the IT platform.

Further information

Niels Mikkelsen
Chief Executive Officer
Tel.: + 45 3266 7721 

Chris Bigler
Chief Financial Officer
Tel.: +45 3266 7017