IC Group A/S: INTERIM REPORT – H1 2015/16

Feb 05, 2016, 7:57

Consolidated revenue for H1 2015/16 amounted to DKK 1,446 million (DKK 1,426 million) corresponding to an increase of 1.4%, or 2.3% measured in local currency, compared to the same period last financial year. The gross margin improved by 1.5 percentage points to 56.6% compared to H1 2014/15. The consolidated operating profit for H1 2015/16 rose by 12.3% to DKK 182 million (DKK 162 million). The Board of Directors expects to distribute an extraordinary dividend of DKK 250 million during Q3 2015/16. Outlook for the financial year 2015/16 remains unchanged.

 

 

  • Peak Performance generated revenue of DKK 562 million for H1 2015/16 (DKK 586 million) corresponding to a reduction of 4.1% (a reduction of 4.0% measured in local currency). As expected, this reduction was driven by the wholesale channel whereas the retail channel reported significant revenue growth. The revenue reduction was solely registered in the Nordic region whereas revenue from the market segment Rest of Europe rose. The operating profit amounted to DKK 99 million (DKK 109 million).

 

  •  Tiger of Sweden increased its revenue by 5.8% (7.7% measured in local currency) to DKK 495 million (DKK 468 million). All channels reported revenue growth – in particular the retail channel. The German market reported a revenue growth rate of 38% while the Nor-dic region generated revenue growth of 9%. The operating profit amounted to DKK 60 million (DKK 53 million).

 

  • Revenue for H1 2015/16 from By Malene Birger rose by 11.8% (13.2% measured in local currency) to DKK 180 million (DKK 161 million) which was primarily attributable to a positive development in the retail channel, however, the wholesale channel also reported higher revenue. Geographically, the European market accounted for the reported growth – in particular in the Nordic region. The ope-rating profit amounted to DKK 13 million (DKK 9 million).

 

  •  As reported in the interim report for Q1 2015/16, the bankruptcy of a former distributor in Switzerland had a negative impact on the consolidated revenue. This incident has in particular affected Tiger of Sweden. Consolidated revenue for H1 2015/16 amounted to DKK 1,446 million (DKK 1,426 million) corresponding to an increase of 1.4% compared to the same period last financial year (2.3% measured in local currency). When adjusting for the development in Switzerland during H1 2015/16, the revenue growth rate would have been 3.3% measured in local currency.

 

  • The gross profit rose to DKK 818 million (DKK 786 million) compared to H1 2014/15, and the gross margin was thus improved to 56.6% (55.1%). The higher gross profit is primarily attributable to improved margins on sold products but also lower freight costs as well as lower inventory write-downs contributed.

 

  •  Capacity costs amounted to DKK 636 million corresponding to an increase of DKK 12 million compared to H1 2014/15 whereas the cost ratio of 44.0% was at the same level as last financial year.

 

  • Operating profit rose by 12.3% to DKK 182 million (DKK 162 million), and the EBIT margin thus amounted to 12.6% which is an improvement of 1.2 percentage points compared to H1 2014/15.

 

  • The Group’s tied-up working capital was reduced by DKK 117 million compared to 31 December 2014. The net working capital constituted 12.6% of the trailing twelve months revenue compared to 17.5% for H1 2014/15.

 

  • Return on invested capital rose by 4.5 percentage points to 32.3% as a consequence of an improved operating profit as well as a lower working capital as at 31 December 2015.

 

  •  As announced on 4 February 2016, IC Group has entered into an agreement with DKC Holding 2011 A/S to sell all of its shares in DK Company A/S. IC Group receives a cash payment of DKK 137 million for the shares.

 

  • The Board of Directors expects to distribute the proceeds from the above-mentioned sale of shares to DKC Holding 2011 A/S to the shareholders. The Board of Directors expects to distribute a total extraordinary dividend of DKK 250 million during Q3 2015/16.

 

Outlook for the financial year 2015/16 – unchanged

We expect the positive performance of the Group’s core business to continue and to drive overall revenue growth and earnings development for the Group.

Specifically, we expect revenue growth to attain a level of 4%.

We expect the consolidated operating profit to be realized with an EBIT margin of approx. 10%.

Investments for the financial year 2015/16 are expected to be in the region of 3-4% of revenue.

 

 

Copenhagen, 5 February 2016

IC Group A/S

 

Mads Ryder                                       Alexander Martensen-Larsen

Group CEO                                         Group CFO

 

 

Information meeting

IC Group will host an information meeting for investors, analysts and other stakeholders on Friday 5 February 2016 at 10.00 a.m.

 

The information meeting will be held in English via audio cast and telephone, and it will be possible to raise questions online using the relevant chat function or telephone. To participate in the information meeting online, please use the link below which is also available on our corporate website icgroup.net under Investors:

http://edge.media-server.com/m/p/qvcuum6b

 

To participate in the telephone conference, please dial in using the below-listed telephone numbers:

+45 3271 1658 (Denmark)
+1 646 254 3366 (USA)
+44 (0) 20 3427 1909 (UK)

 

 

 

Please direct any questions regarding this announcement to:  

Jens Bak-Holder
Investor Relations Manager
+45 21 28 58 32

 

 

 

 

This announcement is a translation from the Danish language. In the event of any discrepancy between the Danish and English versions, the Danish version shall prevail.