Interim report for H1 2009/10

Feb 23, 2010, 14:17

IC Companys A/S – Interim Report H1 2009/10

Consolidated revenue for Q2 2009/10 was unchanged compared to the corresponding period last year. Total revenue for H1 2009/10 decreased by 9% to DKK 1,865 million. The negative trend experienced in the Group’s retail channel for Q1 2009/10 has been succeeded by an increase in Q2 2009/10 while the decline in the wholesale channel has been limited. This development contributed positively to the consolidated operating profit which amounted to DKK 263 million corresponding to an EBIT margin of 14.1%

 

The Board of Directors of IC Companys A/S has approved the consolidated interim report for the period 1 July – 31 December 2009 at a Board Meeting held on 22 February 2010.

 

  • Consolidated revenue for H1 2009/10 amounted to DKK 1,865 million (DKK 2,052 million) which corresponds to a 9% setback. However, revenue for Q2 2009/10 was unchanged compared to the corresponding period last year.
  • Gross profit amounted to DKK 1,157 million (DKK 1,222 million) which corresponds to an increase in the gross margin of 2.5 percentage point to 62.0%. The positive trend seen in Q1 thereby continued in Q2 2009/10.
  • Capacity costs amounted to DKK 894 million (DKK 1,019 million) which is equal to a 12% reduction. This corresponds to a cost rate of 47.9% (49.7%).
  • Operating profit amounted to DKK 263 million (DKK 202 million) which represents an increase in the EBIT margin of 4.2 percentage point to 14.1%. Operating profit for Q2 2009/10 amounted to DKK 42 million (loss of DKK 28 million).
  • Order intake for the summer collection 2010 has been completed and recorded a 1% improvement measured in local currencies and a setback of 4% in reporting currency.

 

Upward revision of outlook for 2009/10

 

  • Given the current market situation, uncertainty still dominates the outlook for the remainder of the financial year, however, the initiatives launched by the Executive Board to counter decreasing activities experienced in 2008/09 have been realised faster than expected. Inventories have been reduced and the discounts are smaller. Seen in light of the above, the Group expects to generate revenues in the region of DKK 3,400 – 3,500 million (previous estimate of DKK 3,300 – 3,400 million) and an operating profit in the region of DKK 220 – 270 million (previous estimate of DKK 150 – 200 million) for the financial year 2009/10.
  • The two tax cases, which involved IC Companys and the tax authorities inDenmarkandGermany, were settled and resulted in an improvement by DKK 30 million to the consolidated profit after financial items and tax. 
  • Investments in the region of DKK 100 – 120 million are expected to be maintained, primarily for an expansion of the distribution and sales promoting improvements of the IT platform.

 

Further information

 

Niels Mikkelsen                                                                                   Chris Bigler

Chief Executive Officer                                                                        Chief Financial Officer

Phone: +45 3266 7721                                                                    Phone: +45 3266 7017